MR Microinsurance_2012_03_29.indd - International Labour ...

426 Insurers and microinsurance
commercial insurers. A portfolio of smaller initiatives can outperform substantial
investment in any single effort when aiming for innovation.
– Learning and replicating: On the other hand, core processes, products and even
partners provide enormous opportunity for multi-market replication. Success
factors may be applied in different contexts but are likely to be implemented differently
depending on local conditions. The challenges of scale, access, data scarcity,
and even sales techniques are entirely common to most if not all countries
and regions, giving a distinct learning advantage to an insurer able to coordinate
or guide efforts across multiple markets.
– Actively creating and shaping the market: Microinsurance requires an “ecosystem”
around the end-client. Large insurers have the resources and the convening
power to bring the different players together. When building sales channels,
insurance companies must aim for active participation and co-ownership by the
partner – making sure the organization understands the basic principles of the
product and supports the creation of a commercially viable microinsurance
market. Likewise, insurers can grow exponentially when they learn new methods
from their partners.
– Commitment to creating an enabling environment: Formal statements by
policymakers – such as the G-20 – influence standard-setting bodies. Pro active
and inclusive regulatory approaches are being developed in many emerging
markets in order to support the expansion of microinsurance. The Access to
Insurance Initiative, the International Association of Insurance Supervisors and
international development agencies are actively working to establish an enabling
environment for microinsurance. Keeping abreast of these discussions, or even
engaging in them, can aid development of a more inclusive insurance sector.