MICROINSURANCE PRODUCTS

Transcription

1 MICROINSURANCE PRODUCTS Presentation at KfW/ISSSG Regional Symposium on Microinsurance Tbilisi, Georgia by Mosleh Uddin Ahmed FCA Independent Consultant 28th June 2005

2 MICROINSURANCE PRODUCTS Several microinsurance products are available in the world today Many researches and studies have been carried out by NGOs, MFIs and Donors in developing these products

3 MICROINSURANCE PRODUCTS Many trials and errors have taken place Attempts have been made to match the products to the assessed needs of the low-income households Many new channels of delivery have been added

4 DELIVERY CHANNELS Existing and new channels of delivery for microinsurance products Cr. Unions Insurance Companies MFIs NGOs Insurance Agents On-line & ATM Self-help Groups Volunteers Health Workers Field Workers Low-income Households Employees Adopted from a presentation made by Dr. B Helms, CGAP

5 INTERESTED PARTIES Low-income Households Adopted from a presentation by Dr. B Helms, CGAP

6 RELATIVE COMPLEXITY OF MICROINSURANCE PRODUCTS MORE COMPLEX Crop/Weather Insurance Integrated Insurance Packages Health/Disability Insurance Annuities/Endowment Property/Livestock Insurance Personal Accident/Unemployment MORE SIMPLE Life Insurance Adopted from a presentation by Craig Churchill

7 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

8 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

9 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 $ Hearing Aid: US $ A member s house destroyed by earthquake and its reconstruction by SEWA members Photo by courtesy of SEWA

10 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 district; 1 product; 230 policies sold; single phase of crop Second year districts; 10 products; 427 policies sold; 3 phases of crop A farmer in India waiting for rain; A group of Indian women preparing their land before the rain Photo by courtesy of BASIX

11 CROP INSURANCE INDIA National Agricultural Insurance Scheme operated by General Insurance Corporation of India on 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

12 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

13 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

14 DELTA LIFE INSURANCE COMPANY A PRIVATE INSURANCE COMPANY SERVING THE POOR IN BANGLADESH Life insurance with savings; over 800,000 policyholders Delivery through its own 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

15 GRET CAMBODIA A insurer provider model Marketing by own staff Primary healthcare by GRET field doctors Hospitalisation in thirdparty hospitals Cash compensation on death of insured Husband and wife team both members of GRET Photo by courtesy of SAO Cambodia

16 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

17 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

18 COMPREHENSIVE HEALTHCARE MICROCARE UGANDA A comprehensive healthcare product with ID card Provides in-patient and out-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

19 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

20 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

21 FUNERAL INSURANCE SOUTH AFRICA Funeral expenditure in 2004: US$ 760 Million; average per burial is over US$ Over 100,000 formal and informal insurance providers offer Funeral Insurance Annual premium: between US$ 7.50 to $ Average Payout: between US$ to $1, per burial A Funeral Parlour Photo by courtesy of Microinsurance Centre

22 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

23 THE HORIZON OF MICROINSURANCE IS EXPANDING Rainfall Funeral Expenses Personal Accident Education Term Life Microinsurance Financial Services for the Poor Products Healthcare Fire Damage Marriage Livestock Unemployment Crop Loss Flood/Storm Damage Endowment/ Pension Credit Life Adopted from a presentation by Dr. B Helms, CGAP

24 MICROINSURANCE PRODUCTS THANK YOU