MR Microinsurance_2012_03_29.indd - International Labour ...

Table 22.2 Summary of insurance business models considered
Product and distribution description Take-up Policy servicing & claims management
490 Delivery channels and intermediaries
Th ird-party administrator responsible for
servicing policies and managing claims. Pep
is responsible for cash premium collection.
Signifi cant take-up:
215 000 policies in
force (2009).
Individual and family funeral insurance, launched in March 2006, sold
through low-income clothing and small appliance retailer, Pep. Th e
product is sold off -the-shelf in packaging similar to mobile phone
starter packs, with no active sales by Pep staff . Monthly premiums are
Underwriter Distribution Channel
partner(s)
classifi cation
Hollard Pep Stores Cash-based
Insurance
retailer
(South Africa)
paid in-store in cash.
Th ird-party administrator is responsible for
servicing policies and managing claims.
Take-it-Eezi is responsible for client registration
and cash premium collections.
Low levels of takeup
with 1 800 policies
in force (2009)
Individual and family funeral insurance cover, launched in January
2007, sold through rural vendor network, Take-it-Eezi. Take-it-Eezi
vendors (typically small informal shop owners) are located in townships
(informal settlements) and use wireless General Packet Radio Service
(GPRS) technology to facilitate sales of cellular airtime, electricity and
Take it eezi Th ird-party
bill payment
providers
insurance. Monthly premiums are paid at vendor in cash.
Shoprite is responsible for registering clients
and collecting cash premiums. Cover2go is
responsible for policy servicing and claims.
Low levels of takeup
Family funeral cover, launched in November 2008, sold through lowincome
supermarket, Shoprite. Th e product is bought off -the-shelf on
a “no-advice” basis. Th e product off ers a cash-back component if the
risk event does not transpire during the 5-year cover period. Monthly
premiums are paid in-store in cash.
Shoprite Cash-based
retailer
Metropolitan
Cover2go
(South Africa)
Wiredloop is responsible for registering clients
and collecting cash premiums. Cover2go is
Low levels of takeup:
less than 1 000
Family funeral product sold through rural vendor network, Wiredloop,
with the use of GPRS-enabled point-of-sales terminals (POS). Th e
Wireloop Th ird-party bill
payment pro-
responsible for policy servicing and claims.
policies sold (2010).
products are sold on a passive basis.
vider
WASP is responsible for premiums collection.
Cover2go is responsible for policy
servicing and claims.
Low levels of takeup
Personal accident insurance product, launched as pilot during Easter of
2007, targeted at minibus taxi passengers. Th e product is advertised on
billboards and fl iers. Individuals obtain the cover by sending an SMS to
a premium-rated short-code that will deduct the insurance premium
from the available airtime. Th e conversion of airtime to cash is facili-
Th ird-party bill
payment provider
Accessible through
all South African
mobile-phone service
providers.
tated by a wireless access service provider (WASP).
Old Mutual is responsible for servicing policies
and managing claims. Shoprite is
responsible for registering clients and cash
premium collection.
Low levels of takeup
Family funeral and accidental death cover, launched in November
2007. Product is sold off -the-shelf on a no-advice basis at low-income
retailer, Shoprite. Th e product is designed for seasonal workers and
allows fl exible premium payments, up to a maximum of 6 months
Shoprite Cash-based
retailer
Old Mutual
(South Africa)
between premium payments. Premiums are paid in cash in-store.
Product administration and servicing is
performed by both parties. Claims directed
to Codensa call centre. Mapfre manages
operational aspects of claims management.
Signifi cant take-up:
300 000 policies sold
(2008)
Separate life, personal accident, funeral, home and vehicle insurance,
fi rst off ering launched in 2001, sold through electricity provider,
Codensa. Th e product is sold through multiple distribution channels –
including an out-bound call centre, face-to-face sales and mass mailing
– using Codensa’s bill payment system to collect premiums.
CONDENSA Utility and telecommunications
companies
MAPFRE
(Colombia)