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

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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

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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

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Financial Inclusion Wave

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• Microinsurance is no longer a novel phenomenon• Active in micro: