MR Microinsurance_2012_03_29.indd - International Labour ...

Improving client value
Yeshasvini and PWDS products add slightly less value, but they serve their
captive markets and provide decent cover at a fair price. Access seems to be an
issue for Yeshasvini, while PWDS, the least mature of the Indian schemes, needs
to improve claims administration and quality of service. If adverse selection and
moral hazard problems are solved, there might be room for further improvement,
resulting in higher client value.
To summarize, the PACE analysis for India draws an interesting picture of
the value delivered by different models. Each model has different strengths that
can be exploited to create better health insurance products for low-income
households. Private-sector players and NGOs should align their products with
large public schemes (provided that service quality improves) through integration
or by targeting different market segments.
15.4.3 Enhancing value from life insurance in the Philippines
Just as India is one of the most mature markets for health microinsurance, the
Philippines is for life microinsurance. Compulsory life covers with disability
and funeral benefits were selected for the PACE analysis. The different models
represented include CARD and FICCO, which are large mutual benefit
associations (MBAs), CLIMBS, a regulated, cooperative insurer working in
a partner-agent model with MFIs and cooperatives, and MicroEnsure,
a specialized broker that develops and administers products delivered in a
partner-agent model. 7 The four products are similar and the microinsurers
broadly target the same market segments (Table 15.4), which makes the PACE
analysis easier than in the other countries where the presence of social security
schemes and the complexity of health insurance made comparison more
difficult.
7 The MicroEnsure product with TSKI is taken as a reference for the PACE assessment in the
Philippines.
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