This paper provides a broad overview of how the microinsurance programme at Tata-AIG emerged and how it operates. It places particular focus on the micro-agent. Because of the low value of microinsurance premiums, low cost distribution is critical in microinsurance. In its micro-agent model, Tata-AIG has introduced a new and exciting distribution methodology to microinsurance in India. The scheme’s benefits and possible shortcomings are discussed in the paper. While the micro-agent model holds much promise, the scheme is still too new to be definitively declared a success or failure.
- Microinsurance Network
CGAP Working Group on Microinsurance