mats school of business, bangalore1 microinsurance a presentation at the 5 th annual microfinance...

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MATS SCHOOL OF BUSINESS, BANGALORE 1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central Bank of Nigeria by: Mosleh U Ahmed FCA GIZ Consultant [email protected] m

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Page 1: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 1

MICROINSURANCE a presentation at the 5th Annual Microfinance

Conference and Entrepreneurship Award

For the

Central Bank of Nigeria

by:Mosleh U Ahmed FCA

GIZ Consultant

[email protected]

Page 2: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 2

Outline

Microinsurance basics The demand side of microinsurance The supply side of microinsurance Some innovative microinsurance

programmes A few cautions World Bank/GIZ Microinsurance Survey

in Lagos and Kano Regulatory issues

Page 3: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 3

Microinsurance is not……..

Charity Prevents risk Provided by only small insurance

companies Down-scaled existing product A “MAGIC BULLET” and a cure for all

problems of the poor people

Page 4: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 4

Microinsurance is……….

Risk management tool Loss protection mechanism

Page 5: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

5

MICROINSURANCE

Microsavings MicrocreditMicrofinance

Emergence of microinsurance is an important development within the field of microfinance and challenges the widely

held belief of the "non-insurability" of the poor.

Introduction to Microinsurance

Page 6: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

6

Microinsurance refers to the insurance products that are designed to be beneficial and affordable to low-income individuals or groups.

Microinsurance can help to improve a person’s quality of life by allowing that person to better manage potential problems while empowering that person to be more

proactive as to the future.

Defining Microinsurance

Page 7: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

7

Defining Microinsurance

Insurance with small benefits.Insurance with:

Simple, easily understood contracts;Little underwriting; Few if any exclusions;Simple claim process while still controlling for fraud;Innovative premium collection’ and policy delivery models;Multi-task intermediaries; Often community or group pricing;

Insurance for low-income people.Insurance involving low levels of premiums.

Page 8: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

8

Microinsurance Basics

The microinsurance business model is ‘social’ business where solving social problems is motivating the business instead of maximizing profits.

Microinsurance products typically have a low return on equity

It is a contract to prevent low income people from facing severe financial problems when faced with unexpected risks events.

Page 9: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

9

Microinsurance Basics

The government or the donors would not

subsidise any part of the premium.

In exchange for insurance protection, the low-

income people pay a small premium.

Page 10: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 10

Risk Pooling

Risk Pooling is bringing together resourcesfrom a large number of people to share in the

losses of a few In case of an MFI the cost to the insured is the

average loss experienced by its “risk pool” In case of an insurance company the cost to the

insured is the premium calculated actuarially for its “risk pool”

Page 11: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 11

Why Microinsurance

Microfinance helps people to move out of poverty:

Credit Savings Leasing

Microinsurance helps people to protect the gains they make through microfinance

Page 12: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 12

Life Cycle Need of the Poor

Birth (C, H, I, S)

Marriage (C, S,

Sc)Death (C,I, Sc)

Training & Education (E, Sc)

Health (C,S,I)

Fixed Asset Acquisition (C)

Old Age (H, I, S, Sc) Asset

Protection (I)

Religious Ceremony (C,S, Sc)

Working Capital (C)

Investments (S)

C = Credit; E = Education; H = Healthcare; I = Insurance; S = Savings; Sc = Social

Page 13: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 13

Destitute

Loan Cycles and Impact of Losses

Econ

om

ic L

evels

Wealthy

Non-poor

Moderate poor

Poverty Line

Impact of Microcredit and Losses

Extreme poor

Vulnerable non-poor

Page 14: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

14

Page 15: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 15

DestituteExtremePoor

ModeratePoor

POVERTY

L INE

VulnerableNon-Poor

Non-Poor Wealthy

Not insuredby anyone

Micro-InsuranceClients

Microinsurance Clients

Traditional Insurance Clients

Page 16: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 16

Delivery Channels

Insurance Companies

MFIs NBFIsBanks

Insurance Agents

Self-help Groups

Low-income Households

Field Workers

Health WorkersVolunteers

Cr. Unions

On-line, ATM Mobile Phones

Employees

Existing and new channels of delivery for microinsurance productsAdopted from a presentation made by Dr. B Helms, CGAP

Page 17: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 17

Different Microinsurance Models

Community-Based Model (UPLIFT, India) Owned and Managed by Members

Insurer/Limited Provider Model (GRET, Cambodia) GRET insures, and provides primary medical care

Insurer/Full Provider Model (Grameen, Bangladesh) MFI is the insurer and owns healthcare clinics

Bundled Insurance Package (SEWA, India) Partnership Model (AIG-FINCA, Uganda) Full Insurer Model (Delta Life, Bangladesh) PPP Model (GOP, Insurer and MFI, Pakistan)

Page 18: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

18

Different Microinsurance Products

Life/Endowment/Credit LifeIndia, Bangladesh, Sri Lanka, Nepal, Vietnam, Pakistan, Indonesia, Laos,East Africa, South Africa, West AfricaColombia, Guatemala, Mexico, Nicaragua

Health/Critical IllnessIndia, Bangladesh, Philippines, Cambodia, China East Africa, South Africa, West AfricaColombia, MexicoGeorgia, Russia

Group Personal Accident West Africa

UnemploymentEast Africa

Crop/WeatherIndiaEast Africa, North AfricaMexico, Nicaragua

Property/Livestock/AssetsIndia, Mongolia, NepalEast AfricaAlbania

Funeral Insurance East Africa, South Africa, West AfricaColombia, Mexico

Bundled Insurance PackageIndiaColombia

Rural Insurance SchemesIndia

Flood InsuranceChina, Indonesia, Vietnam

Page 19: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 19

Relative Complexity of Microinsurance Products

Crop/Weather Insurance

Integrated Insurance Packages

Health/Disability Insurance

Annuities/Endowment Property/Livestock Insurance Indemnity/Personal Accident

Life/Credit Life Insurance

More ComplexMore Complex

More SimpleMore Simple

Page 20: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 20

Vimo SEWA – INDIA a Bundled Insurance Package

SEWA offers three different bundled insurance packages

Covers life, healthcare and loss of assets

Premiums are paid annually or through fixed deposit account

Page 21: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 21

Vimo SEWA – an Integrated Insurance Package

SPECIAL BENEFITS FOR FIXED DEPOSIT PREMIUM MEMBERS(Eligible after 1 year of membership)

 Maternity: $ 20.0  Dentures: $ 20.0  Hearing Aid: $ 20.0 Eye glasses: $ 10.0

Page 22: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 22

Life Insurance with FlexibilityAmparar Policy by La Equidad,

Colombia Monthly premium US$ 1.00;

basic coverage US$ 1,250.00 50% payout for treatment in

case policy- holder contracts incurable disease while insured

After policyholder’s deathChild education expenses for 2 yearsMedical expense for dependentsMonthly food vouchersUtility bills

Page 23: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 23

Pre-paid Health Card – JAMII BORA In-patient Health Insurance with Photo ID in

Kenya

Mandatory for all borrowers

Costs US$ 10 per year Covers borrower and up

to 6 family members Named hospitals/clinics Up to secondary level

treatment and surgeries Medicines and lab tests

covered

Page 24: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 24

Objectives: To identify the potential microinsurance clients’:

• Socioeconomic status• Perception and understanding of insurance risks• Risk mitigation measures • Income and expenditure patterns • Affordability of insurance premiums• Constraints on access to microinsurance services• Supply side• Delivery channels

World Bank/GIZ Microinsurance Survey in Lagos and Kano

Page 25: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 25

Quantitative and qualitative survey carried out by Centre for Microenterprise Development (CMD)

604 urban households in Lagos state 405 rural households in Kano state 4 FGDs in Lagos state 5 FGDs in Kano state

Methodology

Page 26: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 26

Survey area

LAGOS604

Households

KANO405

Households

Page 27: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 27

Sample distribution - Lagos

 №  Survey areas No of household

1 Agege-Iyanpaja-Ogba 119

2 Badagry 20

3 Ikorodu 71

4 Ikeja 65

5 Ketu 43

6 Mushin 28

7 Orile Iganmu 44

8 Oshodi 93

9 Oworoshoki 54

10 Surulere 68

TOTAL 604

Page 28: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 28

Sample distribution - Kano

 №  Survey areas No of household

1 Zango 45

2 Gwale 70

3 Kano Municipal 5

4 Nassarawa 17

5 Fagge 22

6 Dala 22

7 Kawo 76

8 Kabuga 28

9 Kofar Nassarawa 16

10 Ungogo 1

Sub-total 302

Page 29: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 29

Sample distribution - Kano

 №  Survey areas No of household

11 Ungwar Uku 22

12 Mariri 27

13 Tarauni 25

14 Badawa 8

15 Kofar Mazugal 1

16 Tudu Wada 3

17 Wudil 6

18 Danbata 7

19 Jambulo 4

TOTAL 405

Page 30: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 30

Demography of households

Criteria Household Heads Lagos % Kano %

Gender Male 94.8 86.9

Female 5.2 13.1

Marital status Single 24.0 11.1

Married/with partner 68.9 85.4

Separated/divorced 3.3 1.5

Widowed 3.8 2.0

Education level No schooling 6.6 14.3

Primary 5.3 16.8

Incomplete Secondary 6.6 9.9

Completed Secondary 31.3 26.7

Vocational/Special Secondary

20.7 4.2

Higher 29.5 28.1

Page 31: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 31

Demography of households (continued)

Criteria Household Heads

Lagos %

Kano %

Age 18 to 34 34.4 35.3

35 to 44 36.4 30.1

45 to 65 25.8 31.9

Over 65 3.4 2.7

Disability Household heads 0.7 3.2

All members 0.6 1.6

Chronic illness Household heads 17.4 32.6

All members 25.4 30.9

Household size 4 or less 62.0 32.5

5 18.0 23.9

More than 5 20.0 43.6

Page 32: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 32

Source of incomeLagos % Kano %

EmployedPermanentTemporary

35.729.46.3

38.1 30.97.2

Self employedTrade Activities

Skilled LabourAgriculture

ServicesLivestock

Manufacturing

53.841.35.72.43.40.60.4

57.436.56.29.32.62.30.5

Pensioners 1.7 1.9

Social benefits/grants 0.6 1.2

RemittancesExternalInternal

8.44.44.0

140.7

0.7

Page 33: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 33

Poverty level – by poverty scoring

Lagos % Kano %

Extreme poor - 2.0

Poor 13.4 44.4

Vulnerable poor 66.6 52.4

Vulnerable non-poor

20.0 1.2

Page 34: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 34

Monthly earningMONTHLY HOUSEHOLD INCOME Lagos % Kano %

Below N 20,000 6.5 8.4

N 20,000 to N 30,000 5.3 40.8

N 30,001 to N 40,000 1.2 19.5

N 40,001 and N 50,000 2.0 13.8

Above N 50,000 4.0 17.5

Did not answer/could not decide 81.0 -

Page 35: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 35

Monthly disposable incomeMONTHLY DISPOSABLE INCOME Lagos % Kano %

Below N 1,000 0.7 9.0

N 1,001 to N 2,000 1.3 10.9

N 2,001 to N 3,000 4.0 19.3

N 3,001 to N 4,000 2.5 11.1

N 4,001 to N 5,000 1.8 6.4

N 5,001 to N 6,000 1.2 2.2

N 6,001 to N 7,000 1.2 3.7

N 7,001 to N 8,000 0.5 4.0

N 8,001 to N 9,000 0.5 4.2

N 9,001 to N 10,000 0.5 3.0

Above N 10,000 4.8 26.2

Page 36: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 36

Risk events faced – in past 3 years

RISK EVENTS FACED IN PAST 3 YEARS

70.2

15.9

5.8 7.0 3.0 3.5

18.314.3

8.12.7

4.18.810.3 3.75.28.6

39.8

92.1

-10.020.030.040.050.060.070.080.090.0

100.0

Minor illness

Illness requiring hospitalisation and treatment

Death - natural

Illness requiring hospitalisation and surgery

Loss of job

Loss of source of income

Death of breadwinner

Death - unexpected

Theft/robbery of property

Lagos

Kano

Page 37: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 37

Risk events faced more than once – in past 3 years

RISK FACED MORE THAN ONCE IN PAST 3 YEARS

43.7

7.9

17.9

1.7 2.0

49.9

22.7

3.2 2.0

16.5

-

10.0

20.0

30.0

40.0

50.0

60.0

Minor illness

Illness requiring hospitalisation and treatment

Illness requiring out-patient visit

Illness requiring hospitalisation and surgery

Theft/robbery of property

Lagos

Kano

Page 38: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 38

Risks most difficult to cope with - in past 3 years

RISK EVENTS MOST DIFFICULT TO COPE WITH

29.8

22.5

7.84.3 3.3 5.1

1.66

26.4

16.319.8

8.95.9 4.4 4.20

-5.0

10.015.020.025.030.035.0

Min

or il

lnes

s

Illne

ss r

equi

ring

out-

patie

nttr

eatm

ent

Illne

ss r

equi

ring

hosp

italis

atio

nan

d tr

eatm

ent

Illne

ss r

equi

ring

hosp

italis

atio

nan

d su

rger

y

Dea

th -

nat

ural

Dam

age

topr

oper

ty/a

sset

s

Dea

th o

f the

brea

d-w

inne

r

Lagos

Kano

Page 39: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 39

Minor illness – number of times faced in past 3 years

MINOR ILLNESS - NO OF TIMES FACED BY HOUSEHOLDS IN PAST 3 YEARS

39.9

3.0 0.8

26.5

7.9

45.7

4.00.2

42.2

29.8

-

10.0

20.0

30.0

40.0

50.0

None Upto 10 times 11 to 20times

Above 20times

Hard to say

Lagos

Kano

Page 40: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 40

Source of funds - in past 3 years

WHERE DID YOU FIND THE MONEY

80.5

1.3 1.8 0.8 1.710.96.9 4.2 3.7 2.2 2.2

78.8

-10.020.030.040.050.060.070.080.090.0

Usi

ng o

wn

fund

,dep

letin

gsa

ving

s

Sel

ling

Ani

mal

s,fr

uits

and

othe

rs

Don

atio

n fr

omre

lativ

es a

ndfr

iend

s

Insu

ranc

e

Get

ting

Add

ition

al J

ob

No

copi

ngac

tion

take

n

Lagos

Kano

Page 41: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 41

Knowledge about insurance products

KNOWLEDGE OF INSURANCE PRODUCTS

33.4 34.9

22.8

4.0 3.6

49.4

7.4 5.70.5

36.5

-10.020.030.040.050.060.0

Do

not k

now

any

of in

sura

nce

prod

uct Hea

lth

Pro

pert

y -

vehi

cle

Acc

iden

t/Dis

abilit

y

Life

Lagos

Kano

Page 42: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 42

Name of Insurers

KANO

1 Capital

2 Law and Rock

3 Finin

4 Nicon

5 Union

6 Trustway

7 Leadway

8 Access

9 Royal Exchange

10 AIICO

LAGOS

1 AIICO

2 Niger Insurance

3 IGI

4 Leadway

5 Nicon

6 Standard Alliance

7 Royal Exchange

8 Oasis

9 Cornerstone

10 Great Nigeria

Page 43: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 43

Did you have any insurance – in past 5 years

INSURANCE USAGE IN PAST 5 YEARS

81.1

10.9 7.10.9

8.42.5 0.5

88.6

-

20.0

40.0

60.0

80.0

100.0

No Used to have Have now Hard to say

Lagos

Kano

Page 44: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 44

What type of insurance you had – in past 5 years

WHAT TYPE OF INSURANCE YOU USED TO HAVE/HAVE NOW

6.8

8.9

2.3

0.5

6.9

3.2

0.5-

-

2.0

4.0

6.0

8.0

10.0

Health Property -vehicle

Life Livestock

Lagos

Kano

Page 45: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 45

Which concept product will you buy - %

LAGOS % KANO %

Health 73.2 69.6

Property 25.8 31.4

Life 29.1 14.6

Funeral 22.5 7.2

Page 46: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 46

Priority

PRIORITY IN SELECTING INSURANCE PRODUCT

40.6

12.5

61.7

10.64.6

22.0

24.9

23.1

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Health Property Life Funeral/Burial

Lagos

Kano

Page 47: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 47

Preferred frequency of payment

FREQUENCY OF PREMIUM PAYMENT

7.95.0 6.1

10.47.7

3.5

27.8

53.1

27.4

51.1

-

10.0

20.0

30.0

40.0

50.0

60.0

Monthly Quarterly Half-yearly Yearly Hard to say

Lagos

Kano

Page 48: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 48

Health insurance – how many

people

HEALTH INSURANCE - HOW MANY PERSONS TO BE INCLUDED

11.513.3

19.922.2

16.7

7.26.4

27.7

18.1

2.1

9.0

18.413.813.5

-5.0

10.015.020.025.030.0

1 Person 2Persons

3Persons

4Persons

5Persons

6 andabove

Persons

Hard tosay

Lagos

Kano

Page 49: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 49

Attitude towards insurance

WHY DIDN'T YOU BUY INSURANCE

31.1

13.18.3 5.1

31.623.5

14.18.6

-5.0

10.015.020.025.030.035.0

I never thoughof insurance

I don't knowhow insuranceworks; I need

moreinformation

I never heardabout

insurance

No bodyapproached

me to buyinsurance

Lagos

Kano

Page 50: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 50

Attitude towards insurance - Kano

2.7

4.2

93.1

Unaware

Misinformed

Uneducated

Never thought about insurance, would like to know more about insurance, does not know where to buy insurance

Insurance too expensive, no trust in insurers, long and difficult to collect claims from insurance companyBelieves in the benefits of insurance

Insurance is a waste of money

Page 51: MATS SCHOOL OF BUSINESS, BANGALORE1 MICROINSURANCE a presentation at the 5 th Annual Microfinance Conference and Entrepreneurship Award For the Central

MATS SCHOOL OF BUSINESS, BANGALORE 51

Attitude towards insurance - Lagos

0.3

11.4

11.1

77.2

UnawareMisinformedUneducatedOther reasons

Insurance is a waste of money

Insurance too expensive, no trust in insurers, long and difficult to collect claims from insurance companyBelieves in the benefits of insurance

Never thought about insurance, would like to know more about insurance, does not know where to buy insurance

Other reasons for not buying insurance

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MATS SCHOOL OF BUSINESS, BANGALORE 52

Market development projection

MARKET DEVELOPMENT PROJECTIONS

15.1

44.2

32.6

8.1

23.2

55.1

20.5

1.2

-10.020.030.040.050.060.0

Marketavailable now

Market readyfor expansion

in future

Market that canbe created

throughawareness

building

Market notavailable

Lagos

Kano

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MATS SCHOOL OF BUSINESS, BANGALORE 53

Regulatory issues

Insurance regulations in Nigeria How regulations can help growth of

microinsurance

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MATS SCHOOL OF BUSINESS, BANGALORE 54

Thank you…

for the

Central Bankof Nigeria

Mosleh U Ahmed FCA

GIZ [email protected]