MR Microinsurance_2012_03_29.indd - International Labour ...

Formalizing the informal insurance inherent in migration
Hybrid models
Hybrid models should be able to overcome many of the marketing and sales
challenges faced by Home and Host country models. A home country-based
insurer partnering a host country insurer does not face the same legal and regulatory
constraints of the Home model, has proximity to both the migrant and the
migrant’s family, and has the ability to develop products for both. Choosing the
appropriate distribution channel is still important.
Box 17.5 Pioneer Life’s SparxX
Pioneer’s SparxX is a bite-sized savings and insurance plan designed to be accessi- accessi-
ble to the lower-income segments of the Philippine population. It comes in
denominations as low as 300 Pesos (approximately US$6) and provides a guaranteed
return after a certain number of years, based on the individual’s age. Con-
currently, it provides the purchasers with life insurance equal to the guaranteed
future value. Multiple cards can be accumulated over time to increase savings and
insurance protection.
Pioneer is currently testing a variety of distribution schemes for SparxX,
including two targeting migrants and their families. SparxX is being promoted
through a marketing entity in Hong Kong to Filipino migrants using a network
marketing and points scheme. It is also bundling SparxX with other insurance
products for the families of migrants in the Philippines through its Savings and
Wellness Clubs (see Box 17.6 for more detail).
Sources: Interviews with Noel Deguzman and Geric Laude of Pioneer Life Inc. and Pioneer Group; and
www.pioneer.com.ph.
Marketing and distribution partnerships
Table 17.2 outlines partnerships that can be used in migration-linked insurance
programmes. Th ese partnerships can infl uence the costs for the end user, and
selecting partners that already have the trust of the community, and recurring
transactional relationships with the community, or both, can add more value.
Table 17.2 Partners for marketing and distribution of migration-linked microinsurance
Host country Home country
– Remittance-sending agencies agencies (banks, (banks, MTAs, limited MFIs)
– Diaspora organizations
– Service providers (i.e. repatriation company) company)
– Religious organizations
– Sports groups
– Employers
– Other community organizations or NGOs
– Remittance-receiving agencies (banks, MFIs,
MTAs, pawnshops, post offi ces)
– Migrant/job placement agencies
– Service providers (i.e. health care networks)
– Religious organizations
– Other community organizations or NGOs
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