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MICROINSURANCE PRODUCTS
Presentation at
KfW/ISSSG Regional Symposium on Microinsurance
Tbilisi, Georgia
by
Mosleh Uddin Ahmed FCA Independent Consultant 28th June 2005
MICROINSURANCE PRODUCTS Presentation at KfW/ISSSG Regional - - PowerPoint PPT Presentation
MICROINSURANCE PRODUCTS Presentation at KfW/ISSSG Regional - - PowerPoint PPT Presentation
MICROINSURANCE PRODUCTS Presentation at KfW/ISSSG Regional Symposium on Microinsurance Tbilisi, Georgia by Mosleh Uddin Ahmed FCA Independent Consultant 28th June 2005 MICROINSURANCE PRODUCTS Several microinsurance products are available
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MICROINSURANCE PRODUCTS
Many trials and errors have taken place Attempts have been made to match the products to the assessed needs
- f the low-income households
Many new channels of delivery have been added
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DELIVERY CHANNELS
Insurance Companies MFIs NGOs Insurance Agents Self-help Groups
Low-income Households
Field Workers Health Workers Volunteers
- Cr. Unions
On-line & ATM Employees
Existing and new channels of delivery for microinsurance products
Adopted from a presentation made by Dr. B Helms, CGAP
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INTERESTED PARTIES
Low-income Households
Adopted from a presentation by Dr. B Helms, CGAP
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RELATIVE COMPLEXITY OF MICROINSURANCE PRODUCTS
Crop/Weather Insurance Integrated Insurance Packages Health/Disability Insurance Annuities/Endowment Property/Livestock Insurance Personal Accident/Unemployment Life Insurance
MORE COMPLEX MORE SIMPLE
Adopted from a presentation by Craig Churchill
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MICROINSURANCE PRODUCTS IN DIFFERENT COUNTRIES
- Life/Endowment
India, Bangladesh, Sri Lanka, Nepal, Vietnam, Pakistan, Indonesia, Laos, East Africa, South Africa, West Africa Colombia, Guatemala, Mexico, Nicaragua
- Health/Critical Illness
India, Bangladesh, Philippines, Cambodia, China East Africa, South Africa, West Africa Colombia, Mexico Georgia, Russia
- Crop/Weather
India East Africa, North Africa Mexico, Nicaragua East Africa
- Property/Asset/Livestock
India, Nepal, Bangladesh East Africa Albania
- Funeral
East Africa, South Africa, West Africa Colombia, Mexico
- Integrated Package
India
- Rural Insurance Schemes
India
- Group Personal Accident
West Africa
- Unemployment
East Africa
- Flood
China
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Vimo SEWA – INDIA
an Integrated Insurance Package
SEWA offers three different integrated insurance packages Covers death, sickness and loss of assets Premiums are paid annually or through fixed deposit
Marketing of SEWA Insurance through Outdoor Folk Theatre and some of the viewers
Photo by courtesy of SEWA
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Vimo SEWA – an Integrated Insurance Package
SPECIAL BENEFITS FOR FIXED DEPOSIT PREMIUM MEMBERS
(Eligible after 1 year of membership)
Maternity: US $ 6.90 Dentures: US $ 13.80 Hearing Aid: US $ 23.00
A member’s house destroyed by earthquake and its reconstruction by SEWA members
Photo by courtesy of SEWA
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RAINFALL INSURANCE – BASIX, INDIA
With support from the World Bank, IFC, and ICICI Lombard, BASIX, an Indian MFI launched RAINFALL INSURANCE in Andhra Pradesh in India in July 2003 for its own borrowers; benefits indexed to rainfall
Pilot Year - 2003 1 district; 1 product; 230 policies sold; single phase
- f crop
Second year – 2004 3 districts; 10 products; 427 policies sold; 3 phases
- f crop
A farmer in India waiting for rain; A group of Indian women preparing their land before the rain
Photo by courtesy of BASIX
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CROP INSURANCE – INDIA
National Agricultural Insurance Scheme operated by General Insurance Corporation of India
- n behalf of the government
Compulsory for farmers with crop financing; crop loss and loan amount covered Premium according to crop and area; subsidised by the government
Photo by courtesy of BASIX, India
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INNOVATION IN DELIVERY CHANNEL ICICI Group, INDIA
Free ATM cards to poor factory workers Free life/accident insurance Over 100,000 accounts, but potentially millions Joint-venture insurance company products can be bought online
One of the1,900 ATM kiosks for use by cardholders – Photo by courtesy of Dr. B Helms
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FLOOD INSURANCE
A Government of PRC and People’s Insurance Company joint product
Mandatory for all residents in Yangtze River basin Government pays 70% of premium, policy-holders pay 30%. Capping on compensation
Flooding in Yangtze River Basin - Photo by courtesy of WWF
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DELTA LIFE INSURANCE COMPANY
A PRIVATE INSURANCE COMPANY SERVING THE POOR IN BANGLADESH
Life insurance with savings; over 800,000 policyholders Delivery through its
- wn workforce; door
to door collection of premium Loan against policy; access to savings before maturity
A Delta Life beneficiary in her Poultry Farm - Photo by courtesy of a Gono-Grameen Bima Manager, Delta Life
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GRET – CAMBODIA
A insurer – provider model Marketing by own staff Primary healthcare by GRET field doctors Hospitalisation in third- party hospitals Cash compensation on death of insured
Husband and wife team – both members of GRET – Photo by courtesy of SAO Cambodia
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CARD MBA – PHILIPPINES
A Mutual Benefit Association - licensed to provide insurance Three products
Life Insurance Term Assurance (for loan redemption) Provident Fund (long term savings)
Mandatory for all CARD members Covers 600,000 low-income people
A CARD MBA member – Photo by courtesy of CARD MBA
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LIFE INSURANCE WITH FLEXIBILITY
COLOMBIA
50% payout for treatment in case policy- holder contracts incurable disease After policyholder’s death
Child education expenses for 2 years Medical expense/funeral cost of child Monthly food vouchers Public Service Payments
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COMPREHENSIVE HEALTHCARE – MICROCARE UGANDA
A comprehensive healthcare product with ID card Provides in-patient and
- ut-patient treatment and
prescription medicine Several thousand policy holders Started as a NGO; now a licensed Uganda insurance company
A Microcare desk at a participating hospital - Photos by courtesy of MIRT
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ANIDASO LIFE INSURANCE
GEMINI LIFE INSURANCE COMPANY - GHANA
Life insurance with savings product Delivery through a network of rural banks and savings & loans companies Accident benefit and hospitalisation cash benefit being added
Some of the policyholders - Photo by courtesy of Photoshare
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PRE-PAID HEALTH CARD – AFYA Health Card with Photo ID in Kenya Costs US$ 75 per person per year Joint-venture project of 4 organisations AAR Health Services provide healthcare; K- Rep Bank markets and lends cost of card Covers out-patient and hospitalisation costs
A K-Rep Bank customer and potential AFYA cardholder
Photo by courtesy of K-Rep Bank
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FUNERAL INSURANCE – SOUTH AFRICA
Funeral expenditure in 2004: US$ 760 Million; average per burial is over US$ 900.00 Over 100,000 formal and informal insurance providers
- ffer Funeral Insurance
Annual premium: between US$ 7.50 to $ 50.00 Average Payout: between US$ 75.00 to $1,500.00 per burial
A Funeral Parlour – Photo by courtesy of Microinsurance Centre
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UNEMPLOYMENT INSURANCE
OPPORTUNITY INTERNATIONAL BANK OF MALAWI
Launched in 2003 in conjunction with a local insurance company Covers bank’s low-paid, full-time employed loan customers Pays 3 months of loan repayment if borrower is made unemployed
A fingerprint scanner in use at the bank’s counter - Photo by courtesy of IMPACT Newsletter
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THE HORIZON OF MICROINSURANCE IS EXPANDING
Adopted from a presentation by Dr. B Helms, CGAP
Financial Services for the Poor
Microinsurance Products
Endowment/ Pension Term Life Funeral Expenses Credit Life Healthcare Rainfall Education Crop Loss Fire Damage Personal Accident Flood/Storm Damage Marriage Unemployment Livestock
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