building the insurance market

Andrea KeenanSenior Managing Director

Building the Insurance Market

2015 ICMIF Biennial Conference

8 October 2015Minneapolis, Minnesota

Microinsurance Basics

2

• 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:

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCIW5oa2losgCFUQcPgodF9IB_g&url=http://www.allianceforpeacebuilding.org/event/2015/02/fragility-conflict-and-violence-forum-2015/&psig=AFQjCNG66Tx9VbV6wcwJU-dKjamcWgpQFQ&ust=1443823903495475

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOf3s8qjosgCFcegPgodMlYErA&url=http://www.postonline.co.uk/post/news/2393788/munich-re-profits-fall-3-in-2014&psig=AFQjCNHEhd-I4GrKUvP1Pj5MPJpns2kI0A&ust=1443823419992295

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLXW1uajosgCFcI0Pgod2L0LeQ&url=https://esrel2015.ethz.ch/?page_id%3D347&psig=AFQjCNEPRDIZAdTlZv-vniezZtSzX-msNw&ust=1443823492960968

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCK7Gw5CkosgCFchpPgodXSEOBg&url=https://play.google.com/store/apps/details?id%3Dcom.metlifeapps.metlifeus&psig=AFQjCNHMvNfKc3Vp79duMuiPRdBynhVN_g&ust=1443823580545489

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCIyQwp-kosgCFYtrPgodVZEDuw&url=http://www.toastmastersclubsinmadrid.org/event/axa-top-ten-speakers/&psig=AFQjCNHQtft5SVLjXftm8CXjwjBLLwTXIg&ust=1443823608812843

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJv-8sWkosgCFYIrPgod9C8FuQ&url=https://en.wikipedia.org/wiki/ACE_Limited&psig=AFQjCNFStYS5A4TSdk2ItsrnsLjFhzlKOQ&ust=1443823693822525

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNCZ95OlosgCFUkcPgod5fIFfw&url=http://www.rio2016.com/en/sponsors/bradesco-seguros&psig=AFQjCNGGHi98XWMCZvL3doNA8VzisUWOXQ&ust=1443823812796753

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOTksoSmosgCFUE9PgodmFUKdA&url=http://www.dividendmax.co.uk/united-kingdom/london-stock-exchange/life-insurance/old-mutual&psig=AFQjCNGN5g5E1W4CS9gfSPuWmwQOI2bOTQ&ust=1443824093065170

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCIznov6josgCFQNWPgodQT0FTw&url=https://en.wikipedia.org/wiki/Marsh_%26_McLennan_Companies&psig=AFQjCNF27t0iVkDB6uUPNlPxS6prHw1fyQ&ust=1443823536724742

building the insurance market

Economy & Finance