The Landscape of Microinsurance in Asia and Landscape of Microinsurance in Asia and ... Top 10 countries with social microinsurance (in millions) Life 1 ... Landscape of Microinsurance in Asia and Oceania

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<ul><li><p>The Landscape of Microinsurance in Asia and Oceania Arman Oza </p><p>In Association with: </p><p>Premasis Mukherjee </p><p>Rupalee Ruchismita </p><p>13 November 2013 </p></li><li><p>Munich Re Foundation </p><p>How do we define microinsurance? </p><p>13/11/2013 2 </p><p>Individual </p><p>Instt./Govt. co-</p><p>contribution </p><p>Partially Subsidised </p><p>Fully Govt. Subsidised </p><p>Individual </p><p>Semi-formal Instt. </p><p>Insurer </p><p>Govt. </p><p>CBO </p><p>Community </p><p>Risk Underwriting </p><p>by </p><p>Premium Contribution </p><p>Informal Insurance </p><p>Social Security </p><p>How we define microinsurance : the new paradigm </p><p>Microinsurance Social Micro </p><p>insurance </p><p>How practitioners define microinsurance: in terms of target </p><p>clients </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Outreach </p><p> 172.8mn individuals/properties covered by </p><p> MI in Asia and Oceania </p><p> The 10 biggest MI countries contribute </p><p> over 99% of the total MI coverage </p><p> Higher coverage in South Asia: &gt; 120 mn </p><p>13/11/2013 4 </p><p>0 </p><p>20 </p><p>40 </p><p>60 </p><p>80 </p><p>100 </p><p>120 </p><p>0,3 1,1 1,3 2,5 5,3 9,3 9,4 11,9 </p><p>19,9 </p><p>111,1 </p><p>Fig. 1: 10 biggest MI countries (in coverage) [in Million] </p><p>Box1: Key numbers </p><p>31 countries participated 24 countries with microinsurance 216 providers with 500 products </p><p>83.86 MM Life 27.96 MM Health </p><p>77.83 MM Accident 7.67 MM Property </p><p>26.2 MM Agriculture 4.65 MM Takaful </p><p>Central 3,1% </p><p>East 8,3% </p><p>Oceania 0,01% </p><p>Western 0,1% </p><p>South East </p><p>18.6% South 70,0% </p><p>Figure 2: Regional outreach </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Number of covered people/properties by microinsurance </p><p>13/11/2013 5 Landscape of Microinsurance in Asia and Oceania </p><p>India 111.11 </p><p>Philippines 19.95 </p><p>China 11.85 </p><p>Bangladesh 9.37 </p><p>Pakistan 5.34 </p><p>Mongolia 2.46 </p><p>Indonesia 1.34 </p><p>Malaysia 1.09 </p><p>Nepal 0.34 </p><p>Cambodia 0.29 </p><p>Vietnam 0.16 </p><p>Sri Lanka 0.07 </p><p>East Timor 0.018 </p><p>Uzbekistan 0.013 </p><p>Lebanon 0.005 </p><p>Palestine 0.003 </p><p>Azerbaijan 0.001 </p><p>Bhutan 0.0007 </p><p>Kuwait 0.0002 </p><p>Oman 0.0002 </p><p>Thailand 9.31 </p><p>Fiji 0.003 </p><p>Jordan 0.091 </p><p>Kazakhstan 0.00 </p><p>Tajikistan 0.00 </p><p>Afghanistan 0.00 </p><p>Armenia 0.00 </p><p>Yemen 0.00 </p><p>Myanmar 0.00 Laos </p><p>0.00 </p><p>Papua and New Guinea </p><p>0.00 </p></li><li><p>Munich Re Foundation </p><p>Coverage </p><p> The Philippines register highest coverage </p><p>ratio (21.3%) </p><p> Despite impressive outreach, MI coverage </p><p>ratio in the continent is limited (4.36%) </p><p> Including social microinsurance, coverage </p><p>ratio is 48% </p><p>13/11/2013 6 </p><p>0,00% </p><p>5,00% </p><p>10,00% </p><p>15,00% </p><p>20,00% </p><p>25,00% </p><p>1,5% 1,6% 2,1% 3,1% 3,5% 3,8% </p><p>6,2% </p><p>9,2% </p><p>14,0% </p><p>21,3% </p><p>Fig.3: Top 10 countries on microinsurance coverage ratio </p><p>0% </p><p>10% </p><p>20% </p><p>30% </p><p>40% </p><p>50% </p><p>60% </p><p>70% </p><p>80% </p><p>90% </p><p>100% </p><p>Fig. 4: Breakdown of total lives/properties covered by main risk type in regions </p><p>Life Health Agriculture Property Accident Takaful </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Products and Premium </p><p>13/11/2013 7 </p><p> - </p><p> 5 </p><p> 10 </p><p> 15 </p><p> 20 </p><p> 25 </p><p> 30 </p><p>Num</p><p>ber o</p><p>f liv</p><p>es/p</p><p>rope</p><p>rties</p><p> co</p><p>vere</p><p>d (in</p><p> Milli</p><p>on) </p><p>Fig. 6: Number lives/properties covered by region </p><p>Central East Oceania Western Southeast South </p><p>53.6 59.8 </p><p>19,6 15,3 9,2 10,9 </p><p>25,2 28,9 </p><p>0 </p><p>25 </p><p>50 </p><p>75 </p><p>Life Health Agriculture Property Accident Takaful </p><p>USD</p><p>Fig. 7: Dispersion of the average annual premium </p><p>211 190 203.5 203.5 </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Growth of microinsurance </p><p> Period of study: 2010 -2012 </p><p> Compounded annual growth rates: </p><p> 31% growth in coverage </p><p> 47% growth in premium generated </p><p>13/11/2013 8 </p><p>-50% </p><p>0% </p><p>50% </p><p>100% </p><p>150% </p><p>200% </p><p>Viet</p><p>nam</p><p> K</p><p>uwai</p><p>t B</p><p>angl</p><p>ades</p><p>h O</p><p>man</p><p> C</p><p>ambo</p><p>dia </p><p>Pal</p><p>istin</p><p>e S</p><p>ri La</p><p>nka </p><p>Phi</p><p>lippi</p><p>nes </p><p>Pak</p><p>ista</p><p>n Le</p><p>bano</p><p>n In</p><p>dia </p><p>Mon</p><p>golia</p><p> N</p><p>epal</p><p> C</p><p>hina</p><p> Fi</p><p>ji In</p><p>done</p><p>sia </p><p>Mal</p><p>aysi</p><p>a </p><p>Fig. 9: Compound annual growth rate in coverage </p><p>Others 1% </p><p>India 70% </p><p>China 15% </p><p>Philippines 8% </p><p>Mongolia 3% </p><p>Indonesia 2% </p><p>Bangladesh 1% </p><p>Fig. 8: Contribution to the overall growth </p><p> Coverage growth leaders: </p><p>Malaysia (185%) and Indonesia (103%) </p><p> India contributed up to 70% of the overall </p><p>MI growth </p><p> In terms of products, Accident insurance </p><p>is the main contributor to the overall </p><p>growth of the industry. </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Compound annual growth rate in coverage </p><p>13/11/2013 9 Landscape of Microinsurance in Asia and Oceania </p><p>India 31% </p><p>Philippines 18% </p><p>China 76% </p><p>Bangladesh 7% </p><p>Pakistan 19% </p><p>Mongolia 54% </p><p>Indonesia 103% </p><p>Malaysia 185% </p><p>Nepal 60% </p><p>Cambodia 16% </p><p>Vietnam -25% Sri Lanka </p><p>17% </p><p>Lebanon 23% </p><p>Palestine 17% </p><p>Kuwait -7% </p><p>Oman 9% </p></li><li><p>Munich Re Foundation </p><p>Microinsurance providers and delivery channels of microinsurance </p><p> Regulated commercial insurer </p><p> lead the sector. </p><p> Most commonly used channels </p><p>are member organisations, MFIs </p><p>&amp; insurance agents </p><p>13/11/2013 10 Landscape of Microinsurance in Asia and Oceania </p><p>0% </p><p>20% </p><p>40% </p><p>60% </p><p>80% </p><p>100% </p><p>Fig. 10: Distribution channels by risk types </p><p>CBOs, mutuals other mem org Funeral parlours Churches Retailers MI brokers Employer Mobile MFIs, remittances, banks Spec/MI agents Conventional insurance agents </p><p>7,7% </p><p>10,1% </p><p>8,6% 66,9% </p><p>Fig. 11: Percentage of coverage by provider type </p><p>Community-based Organisation Cooperative </p><p>Government Agency </p><p>Hospital </p><p>Mutual </p><p>NGO </p><p>Other </p><p>Parastatal Insurer </p><p>Regulated Commercial Insurer Takaful </p></li><li><p>Microinsurance in Asia and Oceania : The un-ignorable social microinsurance </p></li><li><p>Munich Re Foundation </p><p>Coverage and products </p><p>13/11/2013 12 Landscape of Microinsurance in Asia and Oceania </p><p>0% </p><p>25% </p><p>50% </p><p>75% </p><p>100% </p><p>37,4% </p><p>9,2% </p><p>35,5% </p><p>83,0% </p><p>62,5% </p><p>Fig. 15: Microinsurance coverage ratio of 10 top countries </p><p>Microinsurance Including Social Microinsurance </p><p>0 </p><p>200 </p><p>400 </p><p>0,1 1,0 2,2 10,5 15,0 38,5 45,8 </p><p>76,4 </p><p>316,6 </p><p>1.154,5 </p><p>Fig. 14: Top 10 countries with social microinsurance (in millions) </p><p>Life 1,2% </p><p>Health 90,9% </p><p>Agriculture 7,8% </p><p>Fig. 12: Type of social microinsurance schemes </p><p>Life Health Accident Property Agriculture Takaful </p><p>83,9 </p><p>28,0 </p><p>77,8 </p><p>7,7 </p><p>26,2 </p><p>4,7 </p><p>20,3 </p><p>1.510,1 </p><p>130,1 </p><p>Fig.13: Number of individuals/properties covered by risk type </p><p> [in Million] </p><p>Microinsurance Social Microinsurance </p></li><li><p>Microinsurance landscape &gt; Global microinsurance index </p></li><li><p>Munich Re Foundation </p><p>Microinsurance sector is influenced by business environment it operates in </p><p>13/11/2013 14 </p><p>Microinsurance market as a derivative sector depends on Microinsurance Infrastructure </p><p>Overall Business Infrastructure and Environment </p><p>Reg</p><p>ulat</p><p>ory </p><p> En</p><p>viro</p><p>nmen</p><p>t </p><p>Insurance Industry </p><p>Microfinance Industry </p><p>Microinsurance Sector </p><p>- Development - Prospect - Possibilities </p><p>Demography and Economy </p><p>Political Environm</p><p>ent </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Framework for global microinsurance development index </p><p>13/11/2013 15 Landscape of Microinsurance in Asia and Oceania </p><p>Business environment - Ease of doing business Study; 2012 - Global Innovation Index2012 </p><p>- Overall innovation index - Government effectiveness - Rule of law and regulation - Ease of starting business - R&amp;D as % of GDP - Intensity of local competition - FDI as % of GDP </p><p>Industry development - Insurance industry </p><p>- Insurance Penetration - Insurance Density - Insurance Premium - Growth - Number of Insurers </p><p>- Financial inclusion - % of adults having bank accounts - Microfinance loan as % of GDP - Score from global microscope - Growth in microfinance </p><p>Microinsurance potential - Rural population - 50% of unorganised workforce </p><p>Microinsurance regulatory feasibility - Regulatory capacity - Regulatory clarity - Promotion by regulator/govt. </p><p>Microinsurance supply - Individuals covered - Premium collected </p><p>3 4 5 </p><p>2 1 </p></li><li><p>Munich Re Foundation </p><p>Countries performance differs based on parameter </p><p>13/11/2013 16 </p><p>Pakistan Indonesia </p><p>Philippines Azerbaijan </p><p>Vietnam India </p><p>Thailand Mongolia </p><p>China Malaysia </p><p>Overall Business Environment Development of insurance and financial inclusion sector </p><p>Microinsurance market size </p><p>Vietnam Azerbaijan </p><p>Thailand Laos India </p><p>China Pakistan </p><p>Nepal Cambodia Philippines </p><p>Microinsurance regulatory feasibility </p><p>Landscape of Microinsurance in Asia and Oceania </p></li><li><p>Munich Re Foundation </p><p>Indicative ranking of key Asian countries in microinsurance development index </p><p>13/11/2013 17 Landscape of Microinsurance in Asia and Oceania </p><p>Nepal </p><p>Vietnam </p><p>Malaysia </p><p>Mongolia </p><p>Pakistan </p><p>Cambodia </p><p>Thailand </p><p>Philippines </p><p>China </p><p>India </p><p>Business Environment </p><p>Industry Development </p><p>MI Market Size </p><p>MI Regulatory Feasibility </p><p>Microinsurance Supply </p></li><li><p>Landscape &gt; microinsurance index &gt; intervention strategy </p></li><li><p>Munich Re Foundation </p><p>Intervention strategies will depend on independent variables </p><p>13/11/2013 19 Landscape of Microinsurance in Asia and Oceania </p><p>Azerbaijan </p><p>Bangladesh </p><p>Cambodia China </p><p>India </p><p>Indonesia </p><p>Jordan </p><p>Kazakhstan </p><p>Laos </p><p>Lebanon </p><p>Malaysia Mongolia </p><p>Nepal </p><p>Pakistan </p><p>Philippines </p><p>Thailand </p><p>Turkey </p><p>Vietnam </p><p>Fina</p><p>ncia</p><p>l Inc</p><p>lusi</p><p>on L</p><p>evel</p><p>Insurance Market Development </p><p>Bubble size= Potential Microinsurance Market Size </p><p>A </p><p>D </p><p>B </p><p>C </p><p>Cat. A: Insurance Leaders </p><p>Cat. B: Financially Inclusion Leaders </p><p>Cat. C: Regulation Dependent Cat. D: Transitory </p><p>Characteristic: In Microinsurance lead </p><p>can be taken by insurance industry while using financial inclusion </p><p>sector as vibrant distribution </p><p>Characteristic: Microinsurance can develop through the semi-formal financial inclusion players, viz., </p><p>MFIs, NGOs, Cooperatives </p><p>Characteristic: Microinsurance can </p><p>develop only through regulatory and policy </p><p>intervention </p><p>Characteristic: Market oriented </p><p>microinsurance in development. </p><p>Regulator/ Govt. need to nurture the sector </p></li><li><p>13 November 2013 </p><p>Thank you </p><p>The Landscape of Microinsurance in Asia and OceaniaHow do we define microinsurance?Slide Number 3OutreachNumber of covered people/properties by microinsuranceCoverage Products and PremiumGrowth of microinsuranceCompound annual growth rate in coverageMicroinsurance providers and delivery channels of microinsuranceSlide Number 11Coverage and productsSlide Number 13Microinsurance sector is influenced by business environment it operates inFramework for global microinsurance development indexCountries performance differs based on parameterIndicative ranking of key Asian countries in microinsurance development indexSlide Number 18Intervention strategies will depend on independent variablesSlide Number 20</p></li></ul>

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