WEBINAR ON

Improving Client Value from Microinsurance: Insights from

India, Kenya and the Philippines

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Presenter:Michal MatulSenior Research OfficerMicroinsurance Innovation Facility

Presenter:Eamon KellyConsultant

Presenter:Clémence Tatin-JaleranConsultant

Guest Presenter:Shailabh KumarExecutive DirectorUplift Mutuals

Moderator:Jasmin SuministradoKnowledge OfficerMicroinsurance Innovation Facility

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Webinar Attendee Profile

More than 350 attendees

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Product and process design

How do products meet client needs in

relation to

Product and process design

How do products meet client needs in

relation to

Impact

To what extent and how microinsuranceimproves risk-management and

Impact

To what extent and how microinsuranceimproves risk-management and

What is “Client Value”?

meet client needs in relation to alternatives?

meet client needs in relation to alternatives?

Demand

What factors influence the choices of low-income households?

Product use

What is client satisfaction, loyalty and feedback to improve products?

Product use

What is client satisfaction, loyalty and feedback to improve products?

improves risk-management and

reduces vulnerability?

improves risk-management and

reduces vulnerability?

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1. Measuring client value with PACE framework and tool

2. Identifying value creation opportunities

3. Analyzing offerings in relation to alternatives

Outline of today’s webinar

4. Concluding thoughts

5. Q&A

...and two discussion forums from today till June 8 at the Facility’s Knowledge Centre

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1Assessing client value

with PACE

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with PACE

Building on risk-management preferences

appropriate

accessiblesimple

affordable

responsive

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PRODUCT

• Coverage & sum assured

• Exclusions & waiting periods

• Eligibility criteria

• Value-added services

Client value assessment tool

ACCESS

• Choice and enrolment

• Information & understanding

• Premium payment method

• Proximity

COST

• Premium to client income

• Premium to benefit/cost

• Other fees & costs

• Cost structure and controls

EXPERIENCE

• Policy administration & tangibility

• Claims procedures

• Claims processing time

• Customer care

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1.1 Coverage, quality of

service, exclusions and

waiting periods

0.35

Covers appropriate risks from a client perspective

Integrates appropriate riders to main cover

Provides adequate service quality (for health)

Offers simple cover without many exclusions

Provides limited waiting period

1.2 Sum insured in Pays out adequate amount in relation to cost of risk

Unpacking one dimension - Product

1.2 Sum insured in

relation to cost of risk0.35

Pays out adequate amount in relation to cost of risk

Does not put many sub-limits on specific covers

1.3 Eligibility criteria 0.15 Is inclusive, does not exclude groups of people

1.4 Value-added

services0.15

Offers non-insurance benefits

Offers preventive health services (for health)

Offers value-added agriculture services

Triggers positive behaviour changes

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• Key Sources

– Product: policy documents, marketing information, training info

– Access: interviews mgt & field staff, operational process manual

– Cost: product specs, budgets, tech analysis, KPI’s

– Experience: Direct client interviews, operational manual, KPI’s

Data collection

• Approach

– Audit type, triangulation

– More client data the better

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PACE vs other tools

Market Study

Impact Study

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KPIs

PACE

Client Satisfaction Study

Study

MILK Client Math

2Identifying value creation

opportunities

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opportunities

PACE pilot testing

Kenya

composite

• CIC

• Pioneer

• Britak

• Jamii Bora

India

health

• ICICI Lombard –MG Swath Bima Yojna

• Yeshasvini

Philippines

life

• FICCO

• CARD MBA

• CLIMBS

• TSKI -

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• Jamii Bora

• NHIF

• Yeshasvini

• Bharti/AXA -PWDS

• VimoSEWA

• Uplift

• RSBY

• TSKI -Microensure

Uplift in India: case study

� Expanding member benefits

• Hospitalization product changes

• Network of over 300 care providers providing care at negotiated rates

• Access to health initiatives

• To be sustainable with volumes and technology

� Claims administration

Education & empowerment versus timely payments

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• Education & empowerment versus timely payments

� Product and performance improved over time

• Claim Rejection ratio has decreased over time to 2%

• Claims ratio increased to 70%

• Renewal ratio has increased over time to 70%

• Out of Pocket expenses have reduced over time

• Reduction in claim cost about 3 million rupees in 2010

Microensure in the Philippines: case study

TSKI Product

Cover Amount Raised

Dagyaw

CommunityPricing

Includes borrower and

spouse

Definition of dependentsextended

Exclusions => Increasing benefits

Documents Required

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Opportunities and trade-offs

• Many opportunities, small improvements that make a difference

• Balancing trade offs in a continuous improvement • Balancing trade offs in a continuous improvement process

– Cost vs Product, Access and Experience

• ‘Balanced’ client value vs business strategy

• Contextualizing client value

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3Analyzing offerings

in relation to alternatives

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in relation to alternativesProduct

AProduct

B

product

informalWelfare groups

P: mostly life, ad-hoc for health, low cover,

social function

A: widespread and very accessible

C: 300 Kshs per month/family, high

transaction costs

Benchmarking to informal mechanisms

access

cost

experience

transaction costs

E: delays in ‘payouts’, good experience

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product

informal

mechanisms

NHIF

Benchmarking to social security

NHIF (launched 2007)

Informal sector

P: in-patient health; limited exclusions

A: no information, limited awareness

C: 1920 KES pa per family

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access

cost

experience

E: low HCP quality; limited customer care

product

informal

mechanismsNHIF

JBT

JBT (launched 2001)

600,000 lives (MFI)

P: in-patient health full cover, no

exclusions

A: mandatory; simple; close PoS &

premium financing

C: 200 Kshs per month/family, cost

controls

Comparing JBT to benchmarks

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access

cost

experience

controls

E: cashless, good quality HCP, good

customer care

Client value in Kenya?

product

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access

cost

experience

Enhancing value in the Philippines

product

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access

cost

experience

4Conclusions

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• PACE – a complementary, simple and timely approach

– to integrate client value in a product development process

– to provide preliminary inputs for policy discussions

– to complement other client value studies

Conclusions

• Many value creation opportunities, small improvements that can make a difference

• Product or market maturity matters!

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5Questions and Answers

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Discussion ForumsMay 25 – June 8

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