MR Microinsurance_2012_03_29.indd - International Labour ...

Improving client value
three composite products by CIC, Pioneer Assurance and Britak, and two inpatient
health products by Jamii Bora Trust and NHIF (see Table 15.2). 4 One may
argue that this is comparing apples to oranges. However, as health risks are a
greater concern for low-income households, a comparison of a health and life
product with a health-only product is a valid exercise from the clients’ perspective,
as both address their highest priority. Additionally, the products are comparable
as they target broadly similar market segments: CIC and Britak serve the
same populations in rural areas and CIC and Pioneer in urban areas, while Jamii
Bora Trust targets the slightly lower-income market of urban slum dwellers.
None of the Kenyan schemes, however, has a business case at this point (see
Chapter 18 for results from CIC).
Table 15.2 Products included in the PACE analysis for Kenya
CIC, Bima ya Jamii Pioneer Assurance, Faulu Britak, Kinga ya
Afya
Mkulima
Start date 2007 2010 2007 2001
Product
type
IP health, AD&D,
funeral, voluntary,
stand-alone
Cover KES 340 000 (IP),
KES 50 000 (hospital
cash), KES 100 000
(AD&D), KES 30 000
(funeral)
Annual
premium1 Annual
premium premium1 Distribu- Distribu- Distribu-
tion
Targeted
segment2 Targeted
segment segment2 Perform- Perform- Perform-
ance
IP&OP health, term
life, AD&D, voluntary,
stand-alone
KES 200 000 (IP),
unlimited OP,
KES 100 000 (life),
Disability on tables
Whole life, IP health,
voluntary, stand-alone
KES 100 000 (life),
including 20 per cent
for IP health
KES 3 650 for family KES 6 995 for family KES 1 860 for member
and spouse
SACCOs and MFIs MFI Employer (KTDA) MFI
SACCO members
and MFI clients clients
KES 10 10 to to 15 000
(rural) (rural)
KES 15 to to 30 000 000
(urban)
Urban micro
entre preneurs
KES 15 to KES 30 000
8 300 lives (06.2010) 11 000 lives (09.2010)
40 per cent claims ratio > 100 per cent claims
for life; 120 per cent for ratio
health
25 per cent renewal ratio
Small-scale tea growers
KES 10 to KES 15 000
78 000 lives (10.2010)
80 to 100 per cent
claims ratio
1 per cent lapse rate
Jamii Bora Trust (JBT)
319
IP health, credit life,
mandatory, credit-linked
Unlimited IP, outstand- outstand- outstand-
ing loan cover
KES 2 400 for family
Urban slum dwellers
KES 10 to KES 20 000
600 000 lives (10.2010)
80 to 120 per cent
claims ratio
1 Premiums do not include the cost of taking a loan to purchase insurance, which is very common for
all the products reviewed except Britak.
2 Average monthly household income based on estimations from the providers, on-going impact
study of the CIC product conducted by EUDN and Oxford University, and Ana Klincic’s study on
Jamii Bora Trust clients (unpublished).
Note: US$1 = KES 91.
4 CIC product sells NHIF in-patient cover and bundles it with life benefi ts underwritten by CIC.