Microinsurance to the Last, the Least, and the Lost: A case study in rural India


Until about 2007, microinsurance in India was a state-run initiative with limited scope and coverage. However, as an initiative developed by Financial Inclusion Network and Operations Ltd. (FINO) and ICICI Lombard General Insurance Company, biometric-based smart card insurance was offered to the target group in rural India. This was later adopted by Government of India and was known as "Rashtriya Swasthya Bima Yojna" (RSBY), which means "National Health Insurance Scheme." The business model was designed with a social objective in mind, but also to be economically viable for all stakeholders in order to ensure sustainability. At present RSBY is one of the largest microinsurance schemes in the world, with nearly 25 million families below the poverty line, across 217 districts, having coverage for more than 700 types of ailments. Any insurer intending to offer microinsurance but worried about the viability of such offering can benefit from reading this report. The report will take the reader through one of the successful business models adopted in the scheme. Apart from this, the reader can also benefit from understanding the use of technology that can work and serve in the worst of conditions like lack of power/connectivity, illiteracy, etc. that is common in several rural markets worldwide.






Prathima Rajan

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