MR Microinsurance_2012_03_29.indd - International Labour ...

514 Delivery channels and intermediaries
In just a few years of operation, MicroEnsure has been confronted with several
challenges, which have led to radical changes in strategy. For example, credit life
products were too easily copied and administered, rendering them unsuitable as an
economic base upon which to build the business. Some adjustments have included
reassessing country programmes. In Uganda, for example, one non-functional
relationship with an insurance company culminated in the abandonment of the
whole market as the reputational damage incurred there was beyond repair.
Undoubtedly, MicroEnsure has contributed significantly to the advancement
of the field in several ways, including a demonstration of what should be done in
microinsurance. However, the financial aspects of brokering microinsurance
have led it to seek alternative sources of income to cover development and ongoing
operational costs, as well as to implement a drastic revision of its plans and
strategies. While growth in the number of policies has improved in 2011, largely
due to mobile phone linker cover (see Box 24.7), overall growth has been far
below expectations, which were clearly optimistic.
For the near future, MicroEnsure is focusing on the development of valuable
and financially sustainable health microinsurance, while developing microinsurance
sales through mobile phone networks. With credit life products not providing
substantial cash-flow and profitability, mobile phone insurance has the
potential to take on this role. With a strong profit generator, MicroEnsure can
focus more on products that might provide better value for clients but need more
time to reach success.
23.2.3 PlaNet Guarantee
In 2007, the French microfinance organization PlaNet Finance added a specialized
microinsurance broker to its various microfinance activities. The organization,
PlaNet Guarantee, developed microinsurance projects in collaboration with
MFIs affiliated with the PlaNet Finance group. The company initially offered only
credit life products, but it has since developed a range of other products.
Originally set up as a wholly owned subsidiary with strategic links to the
European reinsurance sector, PlaNet Guarantee gradually opened up its capital
base to four strategic shareholders, each of which now holds 23.6 per cent of the
company: BNP Paribas Assurance, Hannover Re, Malakoff Médéric and Finaréa.
As a result of this change in ownership, PlaNet Finance now owns only a minority
stake in the broker.
At the end of 2010, PlaNet Guarantee had an active microinsurance broker
business with 24 MFIs in 12 countries. 4 It is noteworthy, though, that Senegal
4 Burkina Faso, Colombia, Cote d’Ivoire, Egypt, Gabon, Guatemala, Madagascar, Mali, Mexico,
Senegal, Sri Lanka and territory under the Palestinian Authority.