MR Microinsurance_2012_03_29.indd - International Labour ...

Th e technology revolution in microinsurance
and operations management technologies needed to support a large client base.
As illustrated in Box 24.5, the software needs of organizations change over time
as companies grow, diversify their off erings and expand capacity.
Box 24.5 Evolution of software systems at the DHAN Foundation
Th e Development for Human Action (DHAN) Foundation is an Indian grass- grass- grass-
roots organization that builds thematic institutions to address key development
issues, such as income generation and water management. Th is is achieved by
testing innovative ideas, and scaling up successful ones through associated insti-
tutions. One of the goals of the Foundation is to enable poor communities to
make positive changes in their livelihoods, with emphasis on member ownership,
control and decision-making.
Th e DHAN Foundation has taken up ICT for the poor as a theme to experi- experi- experi-
ment, develop and implement socially relevant programmes. It has become a
cross-cutting theme to complement its microfi nance, microinsurance and agri-
cultural activities.
At the beginning of its interaction with technology, the DHAN Foundation
intended to use commercially developed software for its microinsurance programme.
However, after completing a pilot phase and considering the implica-
tions of many user licences, it decided not to use the software package, in part
because the licence cost was equal to total premium income. DHAN therefore
developed its own insurance system called social security software (SSS). Initially
SSS was used only for the management of its life insurance scheme, but in 2005 a
health insurance product was also introduced. Plans include the extension of the
system to cover livestock and crop insurance. Staff salaries account for the largest
portion of the DHAN IT budget. DHAN has an ICT team who maintain and
further develop its in-house ICT systems.
DHAN Foundation’s next step will be to develop a web-based system for its
microfi nance and microinsurance programmes. Th is system will link to mobile
phones to streamline data entry, policy renewal and premium payment. It will
also include customer service features such as voice and text messages about how
much premium to pay and when to renew. It will have a smart card feature as
well to link the scheme with empanelled hospitals and clinics.
Source: Adapted from DHAN Foundation, 2009.
Th e trend for transaction processing is away from local client-server and
towards non-localized platforms, Internet-based solutions that are highly suited
to integration with mobile devices. For example, Software as a Service (SaaS) is
an Internet-based platform that is not managed by the insurance company, but
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