How Mobile Insurance Works for Informal Businesses
By Kevin Milo, founder of DukaSure and Captivart, 2026-2027 Obama Foundation Leaders: Africa leader ·
Short answer: Mobile insurance for informal businesses lets owners buy, pay for and claim on insurance entirely from a phone. A technology platform handles sign-up, mobile money premium collection and digital claims, while a licensed insurer underwrites the cover and pays valid claims.
What is mobile insurance?
Mobile insurance, sometimes called digital micro-insurance, delivers the whole insurance journey through a phone: learning about cover, signing up, paying and claiming. It grew out of the success of mobile money, which the GSMA documents in its State of the Industry Report on Mobile Money.
Why does it matter for informal businesses?
Informal businesses, such as kiosks, market stalls and small repair shops, are central to many economies. The ILO reports that more than 60 per cent of the world's employed population is in the informal economy. Many of these owners use mobile money daily but have never held an insurance policy. Insurance that runs on the same phone removes much of the friction.
The World Bank's Global Findex database tracks how adults around the world save, borrow, pay and manage risk, and is a useful reference for understanding financial inclusion.
Who does what in mobile insurance?
The licensed insurer
Designs the cover with the platform, carries the risk, and pays valid claims. It must be licensed by the national regulator.
The technology platform
Handles onboarding, payments, policy records and claims workflow. DukaSure plays this role: it is insurer-agnostic and carries no risk.
The mobile money provider
Moves premium payments from the customer's wallet and, where set up, claim payouts back.
The customer
The shop owner, who signs up and manages everything from a phone.
How does the journey work step by step?
- Discover. The owner hears about cover through an agent, a community group, or a short video.
- Sign up by phone. A one-time code verifies the number. No paperwork.
- Describe the business. Type of shop, location and what needs protecting.
- Choose a plan. Clear cover levels in plain language.
- Pay by mobile money. A payment prompt arrives on the phone; the owner approves with a PIN.
- Get the policy. Policy details are stored in the app and confirmed by message.
- Claim when needed. The owner files a claim from the phone, uploads photos and tracks status. DukaSure is built around a 72-hour target for settling claims.
What makes mobile insurance trustworthy?
- Licensed underwriting. In Kenya, the Insurance Regulatory Authority supervises insurers.
- Clear terms. Customers should see exactly what is covered and excluded.
- Fast, visible claims. Trust is won or lost at the first claim.
- Human support. A phone number or WhatsApp line for questions.
What are the challenges?
- Awareness: many owners have never been offered insurance and are wary.
- Fraud controls: digital claims need verification without slowing honest customers.
- Affordability: premiums must fit irregular income.
Explaining a new product to many people is a marketing problem as much as a product one. Short-form video helps. Brands use ClipGanji to place messages inside clips that creators post on TikTok, Reels and Shorts.
The technology behind it
A platform like this is built on phone-number authentication, payment APIs with callbacks, and a role-based admin console for policies and claims. The same building blocks power many modern apps. If you are a business that wants a phone-first product, Captivart builds custom web apps and AI agents.
Learn more
Start with our overview of micro-insurance for small shops, or see why insurers partner with platforms in embedded insurance for microbusinesses.
Frequently asked questions
Can I buy insurance with just a phone?
Yes. Mobile insurance platforms such as DukaSure let you sign up with a one-time code, pay by mobile money and manage your policy from your phone.
Who pays my claim?
The licensed insurer that underwrites your policy pays valid claims. The platform handles the process digitally.
Do I need a bank account?
Not with a mobile money based product. Premiums are paid from your mobile money wallet.
Is my policy valid if it is only digital?
Yes, when issued by a licensed insurer. Keep the confirmation message and check policy details in the app.
Next step
See how simple cover can be. Get started with DukaSure.
About the author: Kevin Milo is the founder of Captivart, which builds ClipGanji, and the founder of DukaSure. He was selected as a 2026-2027 Obama Foundation Leaders: Africa leader. Follow him on X.