Download - Building the Insurance Market
Andrea KeenanSenior Managing Director
Building the Insurance Market
2015 ICMIF Biennial Conference
8 October 2015Minneapolis, Minnesota
Microinsurance Basics
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• Offers simple policies to low-income customers with small premiums and low sums assured
• Alternatives to insurance for this population:– Family/friend loans or gifts– Savings– Selling assets
• Target demographic:– Income $1.25-$4.00 / day
Traditiona
l Insurance
Microinsurance
Government (or other) Assistance
GDP
Per C
apita
Targeted Groups in Micro
3
Income Quintiles(Avg GDP per capita)
Microinsurance target range
Targets in India & Philippines
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Income Quintiles(Avg GDP per capita)
Today’s Landscape
5
Micro Programs: What works?
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• Profitability ≈
• A successful, sustainable program relies on a formula of large scale and low cost.
Formula derived from MILK / MicroInsurance Centre
Maximize
High!
Minimize
Minimize
Cost Reduction Techniques
7
Financial Inclusion Wave
8
• Microinsurance is no longer a novel phenomenon• Active in micro: