Microinsurance: Improving Risk Management for the Poor, No. 8

Publication Date: Nov 2005
Published by: CGAP Working Group on Microinsurance
Document Type: Newsletter (PDF)

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Lessons learnt from models implemented in micro-insurance

This paper describes a conference discussing current practices and lessons learnt in micro insurance. It states that the main purpose of the conference was to present the preliminary findings from the case studies, which were analyzed from the following angles by experts:

• Premium collection methods;
• Risk management;
• Marketing strategies.

The paper highlights that the important outcomes of the conference were recognition of roles that different players have to play in reducing the vulnerability of the poor.

It presents the findings from the case studies recognizing the strengths and weaknesses of models such as:

• Partner agent model;
• Credit unions and cooperative/mutual insurer;
• Community based model;
• Direct sales model.

The paper describes the generally applicable lessons that were derived from these case studies:

• Understanding demand through qualitative and quantitative research of clients’ needs, preferences and familiarity with insurance;
• Gathering information about key product features and clients’ ability to pay;
• Targeting not only clients but also the field staff;
• Serving a mixture of market segments;
• Minimizing the number of exclusions.

The paper explains TATA-AIG’s micro agent model implemented in India. It highlights the problems associated with the model and TATA-AIG strategies to address them.

The paper concludes with:

• Information about an insurance initiative;
• Latest publications on insurance;
• Subgroup activities till date, and plans for the coming year.

The newsletter is available in French, Spanish.