MICROCAPITAL BRIEF: TIM Participacoes Launches Microinsurance through Text Messages in Brazil

TIM Participacoes, the Brazilian subsidiary of Italian telecommunications company Telecom Italia Mobile, reportedly will launch a funeral microinsurance product for low-income individuals that can be enrolled in and paid for via mobile telephones. This service will be underwritten by an unnamed Brazilian insurance company. The insured will be able to accept the terms and conditions of the contract by text message and pay for the insurance premium directly by the phone bill or by prepaid credit.

The director of mobile financial services at TIM Participacoes, Mr Carlos Roseiro, reportedly said that the service is targeted at those who seldom use financial services such as insurance either because of limited access or high costs [1].

As of 2010, Telecom Italia Mobile had approximately 35 million subscribers. As of September 2011, TIM Brazil is responsible for 24% of the group’s total revenues, with EUR 5,395 million (USD 7.8 billion) out of the group’s total consolidated revenues of EUR 22,059 million (USD 28 billion).

By Amira Berrada, Research Associate

Sources and Additional Resources:

[1] Telecom Paper: “TIM Brasil to launch micro-insurance by SMS” http://www.telecompaper.com/news/tim-brasil-to-launch-micro-insurance-by

MicroCapital.org story, January 12, 2012, “MICROCAPITAL BRIEF: Insurer Mongeral Aegon , Microfinance Institution Finsol Team Up to Sell Microinsurance in Brazil” https://www.microcapital.org/microcapital-brief-insurer-mongeral-aegon-mi…

MicroCapital.org story, October 11, 2011, “MICROCAPITAL BRIEF: Brazilian Insurer Regulator Superintendencia de Seguros Privados (SUSEP) to Release Microinsurance Regulatory Framework” https://www.microcapital.org/microcapital-brief-brazilian-insurance-regul…

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.