November 18th, 2013

Micro-insurance Programs Himaya & Ri’aya

Indicators as of Oct. 2013

•45

No. of branches

•441 (70% ♀)

No. of staff

•251 (79% ♀)

No. of loan officers

•97,750

No. of active clients

•43.3 US$

Portfolio (In millions)

Services Offered as of Sep. 2013

•Group & Individual loans

Credit Financial Services

•Microinsurance

Non-Credit Financial Services

•Capacity Building & Training

•Market Linkages + social services

•Rewards & Benefits

•College Scholarships

Non- Financial services

•96,992

No. of Insured Clients-Himaya (Credit life)

•76,623

No. of Insured Spouses

•92,292

No. of insured Ri’aya (Caregiver)

Credit Life - HimayaDeath

Spouse’s death

Total disability

Partial disability

Up to 3 times loan

amount

Caregiver – Ri’aya

No pre-medical exams

Up to 48 nights/ loan period

Affordable Premium

Minimal Exclusions

21 $/ night spent

@ Hospita

l

Why MFIs & Microinsurance?

Risk management tool to reduce the vulnerability

of lower income clients

Improve the ability of clients to repay their loans

Help MFIs improve retention and attract new

clients

Contributes to MFI’s Commercial and Social

agenda

In April 2009 MFW/ WWB applied for an ILO grant

to launch an insurance product that would enable

our clients to better cope with financial burdens

associated with medical emergencies

Public72%

Military20%

Private8%

Hospital Type

KPIs Monitored

Number of insured

Number of claims

Number of rejected loans

Expense ratio

Claims ratio

Coverage ratio

Claims frequency

Hospital stay length

Claim processing duration

Claim rejection ratio

Win – Win – Win … How?

MFI

Client

Insurer

Key Messages

Key Messages

Develop the product for the right reason

(serving your client)

Use pilot program to validate the product

Keep a close eye on your indicators Keep it simple

Thank you