Value-added services are services offered to policyholders outside of the insurance contract. They are not based on an insurable risk or event, but are benefits of enrolment. They are typically not linked to a claim on an insurance policy and are often offered as a way to increase the “tangibility” of otherwise intangible policies (covering infrequent events than may never occur while a policyholder is insured). As such, they can be important in adding a perception of value of the microinsurance policy and improving the satisfaction with and renewals of these policies. Value-added services can include a variety of services both linked or not linked to the insurance coverage such as:
- Support in filling out insurance claims requirements and obtaining necessary documentation
- Education on preventative health, safety or other topics linked to health outcomes
- Health screenings and preventative consultations
- Discount cards to pharmacies, suppliers of agricultural inputs or other businesses
- Various types of assistance including legal assistance, homework assistance or assistance with employment issues
- Financial education
Value-added services are often provided by insurers through third-party arrangements for the benefit of their customers and as such, are not transferable.
- John Pott & Jeanna Holtz (2013). Value-added services in health microinsurance. Geneva: International Labour Organization.