MR Microinsurance_2012_03_29.indd - International Labour ...

406 Insurers and microinsurance
Table 19.1 Microinsurance activities of commercial insurers and their measures of success
Example Key measures of success
CareGiver hospital cash
product launched by
Zurich and distributed
through an MFI in Jordan
Allianz launched launched
the Sarva Shakti Suraksha
(SSS), a savings life
product with MFIs and
cooperatives in India
Mapfre Brazil’s “micro- “micro-
insurance insurance segment”
Profi tability Innovation Reputation
Th e product was launched
in 2010, but early claims
and expense ratios look
promising
With over US$100m in
revenue and suffi cient
profi tability, the product
is being adapted for other
markets
Within fi ve years, Mapfre
multiplied its revenues to
the point where it sells in
20 days what used to take
a year
Th e product off ers
unprecedented health
cover, including maternity
complications; it caters to
the specifi c characteristics
of women policyholders
(see Chapter 16)
SSS is a leading product
for savings microinsur-
ance in India and has
opened the way to new
distribution channels; the
insurer has adapted the
product for the Indone-
sian market as well
Targeting workers in the
informal economy has
expanded the potential
market exponentially
Th e product has given Zurich
and its partner press coverage
in leading global media out-
lets
International media have
repeatedly reported on the
product and Allianz’s cooper-
ation with key partners
Attracted the attention
of media and development
agencies
19.2 Internal organization: Models for success
Developing microinsurance as a viable business for an insurance company may
require changing internal structures and processes, sometimes signifi cantly. Th is
section discusses the key steps and changes required, as well as the success factors
identifi ed at a number of commercial insurers.
As Figure 19.1 shows, the actual shape, development and timing of these
changes will be infl uenced by factors within the company as well as the regulatory
and market environment. Additionally, microinsurance, as with any business
initiative, should be underpinned by good business practices – including
sound risk management and strong implementation. Continuous monitoring
and feedback on the changes can help to implement them eff ectively.
Figure 19.1 Model to develop sustainable microinsurance initiatives
Environment,
regulation
and industry
practice
1. Securing internal understanding and commitment
2. Learning and refi ning models
3. Structuring the business for scale
Risk management and good business practices
Monitoring
and feedback