MR Microinsurance_2012_03_29.indd - International Labour ...

Formalizing the informal insurance inherent in migration
for Mexicans in North America works in partnership with a repatriation company
based in the United States. SegurCaixa has entered into a partnership with
a repatriation company in Spain to assist with collecting and processing documents,
and also works with consulates if there is no living family member in
Spain to fi le the claim.
Some insurers have also worked in partnership with brokers who represent
the benefi ciary if they are out of the country. For example, BancoSol in Bolivia
has a representative in Spain that helps migrants fi ll out claims applications and
then forwards them on to Bolivia to be processed. Th is support is possible
because Spain allows brokers to conduct limited activities on behalf of foreign
insurers not licensed there.
Table 17.3 Summary of opportunities and challenges of the 3H models
Home
country
models
Host
country
models
Hybrid
models
Opportunities Challenges
– More likely to understand needs of target client
group
– More inclined to enter microinsurance given
it is a big market in many “migrant-exporting”
countries
– Can more easily market, sell and administer
policies for migrant’s families – especially useful
for insurance requiring service providers, such as
health care
– Can tap into local distribution channels already
working with the target clientele including
remitters and MFIs to reach migrants’ families
or migrant placement agencies to reach migrants
– Legal and regulatory barriers likely to be less
signifi cant as insurers already licensed
– Can be a large untapped market, as migrants
are generally not as well served by the fi nancial
sector and there is little competition from other
insurers
– May have existing models that can support
distribution although not always tailored to the
target population
– Migrants are more likely to demand insurance
and be able to pay for it than family members
– Migrants often organized in associations/net-
associations/net-
works which facilitates marketing
363
– Legal barriers to marketing and selling insurance
in host country
– – Lack Lack of proximity proximity to to migrant makes marketing marketing
to them more diffi cult
– Need a a distribution channel in host country country to to
work with migrants or to facilitate direct pay-
ment of premiums
– Demand Demand constraints for products products in home coun- coun- coun-
try such as lack of consumer education required
and trust
– Less likely to understand the needs of the target
group
– Less likely to have access to distribution channels
working with the target
– Customer support and claims administration are
complicated where benefi benefi ciaries ciaries are are family memmembers bers in the home country
– Avoid many of the legal and regulatory chal- chal- chal- – Premiums may be higher as the partnership
lenges because there are licensed insurers in creates an an additional layer
both countries countries
– Claims administration more complicated where
– Can market more eff ectively to migrant and benefi ciaries and services are in both countries, countries,
family – important where families make joint and two insurers are involved
decisions
– Choice of law issues are more complicated
– Existing distribution channels in both countries
(although may not to be tailored to target market)
– Can provide continuous service to migrants
who return to home countries