bba v b&i u 1.6 microinsurance
TRANSCRIPT
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Micro InsuranceAn Approach to Serve the
Poor
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Low – income groups are invariably exposed to innumerable risks. Micro insurance works on the phenomenon of risk transfer mechanism characterized by low premiums and low coverage limits.
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Introduction Risk protection Low premiums and low coverage limits Contribution to economic and social
inclusion
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Need for Micro Insurance
Low income household are predisposed
To protect themselves and their families against different risks
Poor need to be seen as a market Developed countries and Developing
countries New concept for the bottom of pyramid
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Characteristics of Micro Insurance
Group insurance schemes Women’s associations, saving and
credit groups, cooperatives and the like
Flexible mode of premium payments
Distribution channel
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Products Life micro insurance
Health micro insurance
Disability micro insurance
Agriculture micro insurance
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Opportunities
Potential area growth and development by insurer and practitioners
New distribution channel Self-employed Public and private insurance player
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Challenges Transaction cost
High administrative cost Distribution systems
Distribution systems of most insurers not designed to serve low income market
Products Absences of exclusive products
Regulatory Environment Require new regulatory environment
Customer Education and Awareness Reinsurance
In order to minimize the risk Fraud
Customer and channel partners
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Conclusion
Poor no longer consider as non bankable
Subset of microfinance Combination with savings and
micro credit
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Thank you…