Allianz Microinsurance Experience in MFI Distribution Auxentius Cahyo Bintoro Emerging Consumers Manager [email protected] Jakarta, July 10, 2017 Presentation for Pasar Asuransi Mikro Indonesia 3
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Allianz Microinsurance
Experience in
MFI Distribution
Auxentius Cahyo Bintoro Emerging Consumers Manager
Jakarta, July 10, 2017
Presentation for
Pasar Asuransi Mikro Indonesia 3
Why we choose MFI?
• Microinsurance (MI) is not only about designing product and doing
enrollment.
• MFI is the most ready institution wherein MI can piggy back on it existing
process: promotion, enrollment, premium collection, education, claim
reporting and claim payment.
• Most importantly Achieving business scale!
Source: “Microinsurance distribution channels: Insights for insurers”. ILO, 2014 25p. (paper no.33
What is our approach?
• Starts with bundled-compulsory products i.e. credit life and savings life
• Gradually offers more advance and higher premium products
Allianz’s MI in numbers, Dec 2016
60 micro credit life partners
5,4 mio no of insured loans
414,000 new insured loan per month
USD 0.6 single premium per insured p.a
USD 2.9 mio GWP a year
The PACE analysis
Micro Credit Life
Sipeci Sekoci
1. PRODUCT 2.4 4.0 4.0
2. ACCESS 2.0 2.7 4.7
3. COST 4.7 4.2 3.0
4. EXPERIENCE 4.1 3.6 4.2
1. PRODUCT
2. ACCESS
3. COST
4. EXPERIENCE
Micro Credit Life Sipeci Sekoci
An enhanced version of Sipeci in form of SIM card, partnered with Indosat as e-
money provider,using IVR technology to increase knowledge and awareness
2016 - Sekoci
A standard MI product developed under the OJK pilot project, term life with
additional PA, scratch card activation, single premium payment, non renewable.
2014 - Sipeci
Only for borrowers, 17-60 years, compulsory participation, piggyback on
loan process, single premium payment, low insurance awareness.
2006 - Micro Credit Life
Process: - Registration
e-Payment: - First premium - Renewal - Claim payout
Education: - Product info - Insurance awareness
through IVR - Reminder
MFIs
Allianz
Indosat Ooredoo
The Functionality of SIM Card with e-Money
Airtime
First time purchase
Renewal
Top up
e-Money
SIM Registration > activate e-money
> activate Sekoci
Sekoci
USD 1.9
USD 1.6
USD 0.8 USD 0.8
MFI Field Staff
Customer
Customer
Sekoci: how it works
Link existing number > activate e-
money > activate Sekoci
Willing to use new number?
Want to keep existing Indosat number?
0 1st 30th 37th
…
Customer’s journey
Performance of voluntary products
5 MFIs as distributor partners for voluntary products
4,330 no of customer covered for voluntary products
19 cases, IDR 135m claim paid of SIPECI
3 cases, IDR 13m claim paid of SEKOCI
13.8% customer conversion ratio
• Insurance, particularly the voluntary ones, don’t sell themselves. They still need human interaction to explain, to sell and to help customers make a decision.
• Insurance awareness and product availability have to go hand in hand.
• Affordability and persistency of
microinsurance could be increased by providing many payment mode alternatives.
• Reaching the scale is still a challenge.
Lesson learned
Way forward…
Achieving business
scale
Acquiring
more distribution partners
Develop more
products
Develop
MI-commerce mobile app
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