Microinsurance on wealth insurance event agenda for first time

Friday, April 22, 2016

The Microinsurance Network led a masterclass on “Responsible Finance and the Insurance World: an Introduction to the Microinsurance Business” sponsored by Selectra a partner of FARAD Group, a private life insurance broker based in Luxembourg, at the 10th FARAD Roundtable on International Intermediation last week.

The event brought together around 100 participants, mostly private wealth insurers and intermediaries in Luxembourg.  Jenny Nasr, Development Coordinator and Henk van Oosterhout, Interim Executive Director of the Secretariat team, presented the Network and led a one-hour session introducing microinsurance to participants who were interested, but largely unfamiliar with the subject.

After the slide presentation which focused on the development perspective and the business case for microinsurance, the discussion revolved around the profitability of such programmes in the developing world. Van Oosterhout explained that the business case should be accompanied simultaneously by a development objective and that the focus should be equally on reducing risk and managing risk.

A panel on “Life insurance in the digital era”, presented by Luc Rasschaert from IWI International Wealth Insurer, Geoffroy Gailly from KPMG and Claude Havé from the Banque de Luxembourg was also held during the event. Based on a survey of insurance companies in Europe, findings showed that only 8% of the life insurance schemes were sold via digital technology. Further, it demonstrated that more than half of the insurance companies in Europe and in Luxembourg do not have a realistic plan of moving into digital technology, in stark contrast to the microinsurance space, which largely depends on mobile network technology for scaling up. With that said however, digitalisation creates opportunities for both clients and intermediaries by making clients´ bank accounts, private equity, real estate and wealth management contracts accessible to them all in one go. This provides them with an overall picture to inform their subsequent choices.