1 WEBINAR ON The Viability of Microinsurance Presenter: Craig Churchill Team Leader Microinsurance Innovation Facility Presenter: Alok Agarwal Execuitve Director ICICI Lombard India Presenter: Pedro Bulcão Chief Executive Officer Sinaf Seguros Brazil Moderator: Jasmin Suministrado Knowledge Officer Microinsurance Innovation Facility
More insurers are increasingly interested in expanding into the low-income market. But is there a business case for microinsurance? Under what circumstances can insurance companies generate profit while providing valued risk managment services to the poor? How can commercial viability be sustained over time? The Facility hosted a webinar to share findings of a cross-case study entitled “A Business Case For Microinsurance” and to discuss two very different business models, and their drive towards commercial viability.
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- Credit life: compulsory - Bima ya Jamii: voluntary bundled hospitalization and life insurance cover
MFIs, SACCOs and other groups
South Africa
Burial Society Support Plan: group funeral cover
Salaried agents work with groups are responsible for the selling and servicing of policies
India
- Manipal Arogya Suraksha (MAS): group-based health insurance- Weavers’ Scheme: health cover including outpatient- Index-based weather insurance: crop cover based on rainfall index (bundled with credit)
- Network of health care providers- Government agency
- MFIs and other credit providers
Guatemala
- Life cover: death and disability cover- Student cover: life policy with additional health cover
BANRURAL network of bank branches
PhilippinesLife cover with additional benefits (e.g. fire assistance)
Pawn shops, rural banks and other credit providers
Lives covered 1.6 million families 0.1 million families
Age Group 01 Day to 80 Years 01 Day to 80 Years
Sum Insured US $ 333 per family US $ 333 per family
OPD Limit US $ 167 per family Not covered
Benefits include Pre existing diseases and maternity benefit
Pre existing diseases and maternity benefit
Contribution of Premium
Central Govt. – 80% and (Optional) State Govt. – 20%Beneficiary – US $ 1.10
Manipal – 88%Beneficiary – 12%
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Index-based weather insurance
• An insurance product based on weather indices (pioneered by ILGIC in India in collaboration with the World Bank)
• To financially indemnify those engaged in any economic activity against adverse deviations in Weather parameters like :– Rainfall – Temperature– Humidity– Wind speed– Fog– Hailstorm
Cover is provided for deviations from the optimum range required
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Sinaf overview
Sinaf’s Products
Funeral
Personal Accident
Family income benefit: 06 to 24 months
Senior couple or individual life insurance
Funeral (relatives)
• Life insurance company, 30 years experience with funeral insurance;
• Operating at the metropolitan area of Rio de Janeiro, Brazil;• Totally focused on low income market;• Distribution by an in-house sales-force.