MR Microinsurance_2012_03_29.indd - International Labour ...

454 Insurers and microinsurance
Th e top fi ve products off ered by MFIs MFIs1 Figure 20.5 Th e top fi ve products off ered by MFIs 1
Number of products
30
25
20
15
10
5
0
24
Natural death Accidental death Health
Microinsurance products
Disability Asset
Source: Micro Insurance Map, 2011.
18
1 T he natural death category includes credit life and products that have pension and money-back
features. Th e accidental death category includes personal accident insurance and disability covers.
Insurers working with MFIs often assume that they have the ability to provide
on-the-ground support for the early reporting of claims and assistance to
benefi ciaries in producing the necessary documentation. Although many of
the larger MFIs are able to support claims settlement and manage insurance
activities, this is not the case with newer, smaller MFIs. Over half of the MFIs
surveyed did not maintain a separate microinsurance balance sheet, did not
undertake claims analysis, and did not invest in staff training to deliver microinsurance.
Even large, capable MFIs can be risky delivery channels. Insurance is not
their core business, but rather a supplementary activity. Th e microfi nance
crisis in 2010 directly aff ected the portfolios of large, and some medium-sized
MFIs with substantial exposure in the state of Andhra Pradesh. Th e crisis had
additional global implications, as described in Box 20.7, which could present
an opportunity for microinsurance depending on how players respond to the
regulatory change that prohibits MFIs from charging clients service fees in
addition to the commissions they receive from insurers.
16
6
4