🇲🇳 What3words in Mongolia | 4G LTE network | Insurance industry

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In today’s edition:

• What3words in Mongolia

• 4G LTE network

• Insurance Sector

Let’s dive in!

🌱 Navigating Mongolia’s Knowledge Frontier with Just Three Words 

2023 has been an eventful year. Began with nationwide demonstrations against corruption, Mongolia has, since then, witnessed a sturdy economic revival, high-profile state visits including French President Macron, and rejuvenated global attention. The spotlight shines brightly on Mongolia's vast natural resources, a testament to 92% of its exports hailing from the mining sector. Yet beneath this mineral-rich facade, a nascent but potent knowledge sector is taking root.

In an arena overshadowed by the mining magnates, the presence of Chris Sheldrik, the head of London-based tech firm what3words, was a novel deviation at the Mongolia Economic Forum. The firm's ingenious addressing system — assigning a unique triad of words to each 3x3 metre grid across the globe — makes Mongolia's expansive steppes a fitting market. However, the intrigue doesn't halt there: Ulaanbaatar houses one of the company's three global hubs.

"The sheer calibre, dynamism, and enterprise shown by our Ulaanbaatar team sets a benchmark," lauds B. Khulan, a regional manager for the firm. From a trifling trio at its inception, the office now burgeons with over two dozen professionals, masterminding what3words' global operations, outreach, and technical undertakings.

The Ulaanbaatar nexus offers the company palpable dividends. Its time zone bridges European work hours, seamlessly extending business into Asia and the Pacific. The linguistically adept team sidesteps language hurdles, unlocking doors to the likes of Japan, South Korea, and India — all while reaping the benefits of economical labour rates.

Yet, Mongolia doesn't play just the role of a passive beneficiary – far from it. "To be tethered to a global company, making profound global imprints, right from Mongolia, is nothing short of surreal. And, the perks are leagues ahead of local offerings," enthuses O. Injir, a fledgling at the firm.

Synchronizing with Mongolia's public sector, what3words has also embedded its transformative touch on the nation's emergency protocol, mail delivery, and digital transformation. "Our product literally saves lives," remarks Khulan, recounting a poignant episode where a distraught mother and her child, stranded in the hinterlands, were salvaged courtesy of a mere three-word coordinate.

What3words epitomizes Mongolia's yearning: a knowledge-driven, multifaceted global economy, undeterred by its imposing neighbors. It proudly nestles alongside Mongolia's burgeoning knowledge champions, such as the mining juggernaut Rio Tinto and tech wunderkind Epxes, celebrated for its CRM suite. Deep within its vast plains, Mongolia artfully intertwines its nomadic legacy with its modern economic aspirations.

DATA STORY: 4G LTE network across Mongolia

64.7% of the population over the age of 6 use the internet, which is an increase of 34.1 percentage points from 2010. Unitel, one of Mongolia's mobile network operators, has introduced its 100% high-speed 4G network in all 21 provinces and 330 sums. An average of 79% of the total population in these provinces is using Unitel's network.

👨 👩 Insured people: 883.2 thousand

Insurance premium revenue during the first half of 2023 surged by an impressive 36.2% compared to the corresponding period last year, reaching a substantial ₮169.2 billion. Here's a breakdown of the key components,

• Insured People: The number of insured persons reached 883.2 thousand. Compulsory insurance accounts for 51.3% of all insured persons while voluntary insurance accounts for 48.5%, and long-term or life insurance accounts for 0.2%.

• Income Structure: 25.7% of total insurance premium revenue comes from vehicle insurance while property insurance revenue accounts for 15.1%.

• Impact: The growth in total insurance premium income primarily attributes to a notable 45.6% surge in vehicle insurance premium revenue and a substantial 46.3% uptick in property insurance premium revenue.

• Settlement: Moreover, insurance settlement also witnessed an increase of 10.3%, reaching a sum of ₮53.4 billion. The vehicle insurance settlement rose by 41.3%, while settlement for accident and medical insurance experienced a growth of 25.4%.

Industry Representation

Taking a closer look at some of the insurance companies registered on the MSE (MSE) as industry representatives,

• Ard Insurance (AIC): The company's profit for the first half surged by a remarkable 2.1 times, reaching ₮646.1 million. This positive growth can be attributed to a substantial 23.4% increase in net income from insurance premiums.

• Mongol Daatgal (MDIC): Conversely, MDIC encountered a loss of ₮2 billion during the first half of the year. This can be attributed to the company's profitability in terms of insurance operations, overshadowed by elevated general, sales, and marketing expenses.

• Bodi Insurance (BODI): While the company registered a profit of ₮305.8 million, it faced a loss of ₮1.2 billion in the same period this year. The decrease in income coupled with increased compensation amounts played a role in this shift.

• Mandal Daatgal (MNDL): On the other hand, MNDL achieved the highest profit of ₮1.7 billion. However, this represents a 24.8% decrease compared to the corresponding period last year.

In conclusion, the insurance industry in Mongolia appears to be expanding year by year, with a growing cultural adoption of insurance practices. The dynamic nature of this sector underscores the varied financial performance of different insurance companies.

🏃 QUICK STORIES

🔵 In July, tugrik deposits increased by 8.5% from a year ago, reaching ₮14.4 trillion. Also, foreign currency deposits increased by 9.1% in the same period of time. This was due to the slight appreciation of the MNT since last March.

🔵Suu (SUU) to distribute a dividend of ₮2.6 billion. Specifically, the company will distribute a dividend of ₮7.7 per share from the net profit of the H1 of 2023. The list of shareholders entitled to receive dividends will be determined on the 6th of September.

🔵 Mongolian economy grows 6.4% YoY to ₮13.6 trillion. The growth was primarily generated by the mining and extraction sector which accounted for 3.9% of the growth.

🔵 Richard Quest, an international business journalist and anchor, arrived in Mongolia for a 3-day stay. During his stay, he interviewed experts on the Mongolian cashmere industry, capital market, mining, and business environment. To watch more interviews about Mongolia, click HERE.

⭐ TOP NEWS

• How the lives — and sexual freedoms — of Genghis Khan’s Mongolians helped shape a civilisation. (FT)

• Mongolia, Rio Tinto have resolved nearly all copper mine tax issues – PM. (Mining.com)

• Caught Between China and Russia, Mongolia Seeks Closer U.S. Ties. (WSJ)

👀 WATCH: Mongolia's nomadic heritage

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Editor: E.Zolbayar
Writer: M.Khulan & Skh.Angirmaa & A.Bilguun

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be and does not constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.