Microinsurance is a new sector and understanding its extent of reach and overall performance through the lens of data and numbers is crucial for its development. For the sector to develop, stakeholders need data to understand reach, evaluate performance and design appropriate products which are valuable to clients. The numbers tell the story of the impact that microinsurance is making or is expected to make.
Meet Susan, a member of Discovery Health’s Vitality programme, a reward-based scheme bundled with her life insurance policy. When Susan’s health activity is recorded (for example, if she goes to the gym), she earns points that determine her Vitality status. As her Vitality status improves, she can access increasing discounts for leisure and travel activities.
The Microinsurance Network attended the 2017 FARAD Finance Forum which took place in Luxembourg earlier this month. Organised by FARAD International, an independent insurance broker specialised in the Private Life Insurance sector, the event was held as a full-day forum for the first time, and brought together players of the three pillars of the financial industry: the banking sector, the insurance industry and investment funds.
While microcredit and savings have historically dominated the financial-inclusion conversation, there is growing recognition for the innovative ways that microinsurers are bringing services to the people who need them most.
“The Financial Inclusion Challenge” competition, run by The Wall Street Journal, showcases nonprofit and for-profit enterprises that are solving problems of financial access for the poor in the Asia-Pacific region.
An insight on technological advances in insurance offerings today
An eye-opening session took place at the 12th International Microinsurance Conference in Sri Lanka on the use of technology in microinsurance, presenting a number of interesting innovations on the way insurance can be offered.
What if you could simply swipe your card every time you wanted to pay for a minibus taxi ride? That might be more convenient than carrying the right change in cash... But what about if you are automatically insured for the trip you’re about to take, as a result of using that card? Now that’s an incentive, isn’t it?
With insurance penetration as a percentage to GDP in Ghana at below at 1.85% at the end of Q1 2016, according to Africa Insurance Organisation statistics from 2014, there is general consensus the sector is underperforming.
The second day of the 6th Consultative Forum on “Innovative products for the emerging consumer”, in Marrakesh, was organised into two breakout sessions, for regulators and industry participants to present insights and propose recommendations for microinsurance innovative product development.
Microinsurance products need to be designed in a way that is socially responsible and adds value to the end consumer.