MR Microinsurance_2012_03_29.indd - International Labour ...

346 Insurance and the low-income market
Simple insurance policies and claims processing: Suitable processes for less-educated
women
Insurance policies should be simple and easy to understand. Exclusions and complex
provisions should be kept to a minimum and payouts should be straightforward
and clear, which will make it easier for potential enrolees to understand
how microinsurance works and what the benefits are for them. Insurance policies
must also feature clear and simple claims processing if the programmes are to be
successful. This means that the delivery outlet (i.e. an MFI) must provide sufficient
and easy-to-understand information on how to process the claim and offer
support to clients who need assistance. Clear information and proper support is
especially crucial for new customers who may not be familiar with the process.
Without an easy-to-use claims process accessible even to illiterate customers,
women may not only fail to receive the full benefits of microinsurance, they may
also effectively forfeit money spent on premiums which could have been used for
other risk strategies (Mayoux, 2002).
16.4 Conclusion: A call to action
Poor women face a range of potentially catastrophic risks. The traditional risk
strategies at their disposal are diverse, but often inadequate. Microinsurance,
when effectively designed to meet the unique needs of poor women, can offer
compelling benefits to this target market. Yet, with extensive demands for
comprehensive cover and pressure to keep costs low, the execution of successful
gender-sensitive microinsurance products represents a serious challenge. This
chapter has attempted to raise many of the gender issues related to the provision
of microinsurance, and proposes an urgent call to action to donors, insurers, the
research community, MFIs and other delivery channels.
16.4.1 MFIs and delivery channels
Many MFIs are in touch with the financial needs of poor women, and therefore
have an opportunity to go beyond the provision of loans to offer gender-sensitive
microinsurance. Other delivery channels may have less access to the women’s
market, but still offer large opportunities for reaching poor women.
We encourage all delivery channels, including MFIs that already reach many
women with loans, to learn about women’s risk management and coping needs
through localized gender market research. We encourage these organizations to use
research-driven customer insights to develop new or improve existing gender-sensitive
microinsurance products. After a product has been launched, impact-assessment
studies are critical to ensuring that the scheme responds to women’s needs in the
local context. Developing gender-sensitive microinsurance offers both direct