microinsurance product pool v2 - allianz · pdf filethis microinsurance product pool lists all...
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MicroinsuranceMicroinsurance Product Pool v2.6
Overview and assessmentOverview and assessmentof Allianz microinsurance product
Allianz SEApril 2013
publicpublic
ts
developed in cooperation with
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Introduction
This microinsurance product pool lists all microinsurance products of Allianz Group that currently provide insurance cover to low-income people in emerging markets and developing countries. They generate 100% of Allianz’ microinsurance premium volume.
Two non-microinsurance products are included at the end to show why some Allianz products are not considered microinsurance although they also target low-income people.
This initiative supports the “Transparency” value of our Allianz microinsurance values:
1) To learn more about the Allianz microinsurance values please see our latest microinsurance business updates. 2) The product assessment shows how well the products is intended to serve low-income families in compliance with our
microinsurance values (“as planned”). It does not verify how products and distribution look on the ground (“as is”). Example: Allianz may have produced product brochures although for various logistical reasons they do not reach the insured. The assessment is also no indicator for actual business success.
Passion Quality Fairness Transparency
e.g. product pool
A. Product specifications Gives a high-level explanation how the product looks like (distribution, benefits, pricing)
B. Product assessment2 Matches the product against the Allianz microinsurance definition and assessment tool. This includes 1. Knock-out criteria: “Can we call this product micro?”, and 2. Qualitative criteria: “How well does the product fulfill our
microinsurance values?”2
C. Product brochures (where available)
Allianz Microinsurance Values1
Information on each product is presented in three sections:
We will update this product pool every April and September as new microinsurance products are launched and existing products are modified or taken off market. We try to list products from the moment the first insurance policy has come into force until the last policy matures. However, there is no duty to update (see disclaimer).
Martin Hintz +49 89 3800-18401 Microinsurance E-mail: Allianz4Good [email protected]
Is this really the latest? See our microinsurance website for the
most recent reports and publications
Contact
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Knock-out criteria: "Can we call it micro?"
Qualitative criteria: "How well aligned with our microinsurance values?"
Quality rank avg. c1-c7
A B C D 1 2 3 4 5 6 7
Details
on page
Insurance principles
Dev. C
ountry or EM
Low-incom
e focus
No subsidies >50%
Strong R
isk Mgm
t
Other benefits
Custom
ers involved
Voluntary
Custom
er education
Product sim
plicity
Low transaction costs
#
Country
Company
Product Name
1 Colombia Allianz Colombia
PA2 & Dental + +
+ - ++
++
++
++ 1.6 5
2 Colombia Allianz Colombia
Family Term Life +
+ - ++
++
+ + + + 1.4 7
3 Colombia Allianz Colombia
Home business +
+ - ++
++
+ + + + 1.4 9
4 Colombia Allianz Colombia
Term Life & Maternity +
+ - ++
++
+ + + + 1.4 11
5 Indonesia Allianz Life
Micro-En-dowment +
+ - ++
++ + +
+ + 1.4 13
6 Ivory Coast
Allianz Africa
Mobile Funeral +
+ - - + +
+ +
+ +
+ + 1.4 16
7 India Bajaj Allianz Life
Life + Savings + - - +
+ ++
++
++ 1.3 20
8 Ivory Coast
Allianz Africa
Funeral Insurance +
+ - - ++ + +
+ ++ 1.3 22
9 Colombia Allianz Colombia
Group Term Life +
+ - - + +
+ + + + 1.1 26
10 Indonesia Allianz General
Scratch- card PA - + - +
+ ++
++ + 1.1 28
11 Malaysia Allianz General
Motorcycle + PA2 +
+ - - ++
++ - + 1.0 32
12 West Africa Allianz Africa Credit Life + - +
+ - - + +
+ + 1.0 36
13 West Africa Allianz Africa Crop Index +
+ - ++ - + + + 1.0 38
14 India Bajaj Allianz General
Cattle & Livestock +
+ - - + ++ - + 0.9 42
15 India Bajaj Allianz General PA Plus + - +
+ + + - - + 0.9 44
Overview1
1) See our website for a full explanation of our assessment methodology 2) PA: Personal Accident Note: A high ranking is only an indicator for compliance with Allianz’
microinsurance values, not an indicator for actual business success
new
update
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Knock-out criteria: "Can we call it micro?"
Qualitative criteria: "How well aligned with our microinsurance values?"
Quality rank avg. c1-c7
A B C D 1 2 3 4 5 6 7
Details
on page
Insurance principles
Dev. C
ountry or EM
Low-incom
e focus
No subsidies >50%
Strong R
isk Mgm
t
Other benefits
Custom
ers involved
Voluntary
Custom
er education
Product sim
plicity
Low transaction costs
#
Country
Company
Product Name
16 India Bajaj Allianz Life
Group Term Life + - - - + +
+ ++ 0.9 46
17 Indonesia Allianz Life
Credit Life Plus + - + - - +
+ ++ 0.9 48
18 Egypt Allianz Credit Life + - - - - +
+ ++ 0.7 51
19 Mada-gascar
Allianz Africa Mobile PA2 - - - +
+ - ++ + 0.7 53
20 India Bajaj Allianz General
Personal Accident - - - +
+ - - + 0.4 55
21 Ivory Coast
Allianz Africa
Mobile Savings not
micro 57
22 Malaysia Allianz Life + General Life & PA2 not
micro 61
Overview1
1) See our website for a full explanation of our assessment methodology 2) PA: Personal Accident Note: A high ranking is only an indicator for compliance with Allianz’
microinsurance values, not an indicator for actual business success
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1. Colombia: PA & Dental
Product name (generic or marketing name)
Personal Accident Plus Dental
Product type (e.g. credit life, endowment, motorcycle)
Enhanced Personal Accident
Company name Allianz Colombia
Country Colombia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Food and consumer good companies (as master policy holders)
Launch date (and stop date if any)
1 Feb 2011
1-sentence product description Personal accident cover for small shop owners + dental assistance for shop owner and 3 dependants
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Accidental Death: COP 3mn (~ USD 1,700), payable as an education grant for the children of the insured
Dental Assistance: Cashless payment (@ market rates) for emergency treatment arising from 6 dental conditions, e.g. caries, infections or pulpitis
Premium range (min, max)
Premiums paid by group policy holder (the food & consumer good companies)
Avg. premium / year (annualize if necessary)
n.a.
Other comments
Dental assistance is only available at one large network of dental clinics
For eligibility, shop owners need to fulfill certain criteria set by the companies
A. Product Specifications
>> back to Overview
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1. Colombia: PA & Dental
Product: Personal Accident Plus Dental Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Colombia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Insured small shop owners are mostly from strata 2 (low-middle class) of the 6-step Colombian socioeconomic stratification.
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers +
Personal accident for a relatively safe occupation such as shop keeper does not address a significant risk. But the dental assistance is highly utilized
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
++ The associated network of dental clinics gives up to 50% discount on dental procedures not covered by the policy
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ The product is voluntary in the sense that shop owners can decide whether they want to fulfill the companies criteria for eligibility
5 Customer education and feedback mechanisms in place ++ A 24/7 dental hotline is available. All enrolled receive
an insurance card with the key policy conditions
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Automatic acceptance. No age limit. Documentation requirements for dental assistance are minimal (normal for accidental deaths)
7 Strong measures to ensure low transaction costs ++
Distribution is outsourced to the field staff of the companies. Dental claims are outsourced to 3rd party provider. Collection occurs as bulk payment
Overall ranking3 1.6
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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2. Colombia: Family Term Life
Product name (generic or marketing name)
“Seguro de Vida” (Life Insurance)
Product type (e.g. credit life, endowment, motorcycle)
Term Life
Company name Allianz Colombia
Country Colombia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Microfinance Institution (MFI)
Launch date (and stop date if any)
1 July 2012
1-sentence product description Voluntary Group Term Life Insurance that provides life insurance cover to the group’s members (and optional their partners) plus additional funeral cover to the insured group members and up to 4 freely chosen close relatives
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Death due to any cause of insured (i.e. group member and optional – against additional premium – the partner): COP 3mn to COP 15mn depending on chosen premium plan (~ USD 1,600 to 8,000)
Funeral benefit to member and 4 freely chosen close relatives (which can include the partner): up to maximum COP 3mn (~ USD 1,600) for all premium plans. Benefit expires after 2 death cases
Maximum sum assured per person: COP 30mn (~ USD 16,000), e.g. if a client has multiple policies of this product
Premium range (min, max)
Minimum COP 9,960 per month (~ USD 5.50) for minimum benefits for single insured and 4 relatives
Maximum COP 42,068 per month (~ USD 23.00) for maximum benefits for insured, partner and 4 relatives
Avg. premium / year (annualize if necessary)
COP 10,240 (USD ~ 5.50)
Other comments
The product is only available to active clients of the MFI, i.e. those who have an active credit and/or savings account with that MFI
90 days waiting period for minor pre-existing conditions 180 days waiting period for major pre-existing conditions (e.g. cancer)
and suicide
A. Product Specifications
>> back to Overview
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2. Colombia: Family Term Life
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
Product: Seguro de Vida Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Colombia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
The MFI distributor targets low-income families, i.e. strata 1 - 3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low maximum loan amount of their micro-credit segment of COP 2.3mn (~ USD 1,300)
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
The product protects several family members against death which is a significant risk. Coverage includes pre-existing conditions which allows for the inclusion of more vulnerable people (subject to waiting periods).
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
Workshops were done by the MFI in selected branches to garner input for the product design, especially as previous life insurance offers had not found wide acceptance among customers
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary for existing customers of the MFI
5 Customer education and feedback mechanisms in place ++
Customers receive verbal explanations from the bank’s staff. Brochures are not used as customers are often semi-literate. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
+ Simple product without health declaration. Several plan options exist, so the distinction of which family member has what level of coverage takes time to understand. Certain waiting periods and exclusions exist.
7 Strong measures to ensure low transaction costs +
Monthly batch processing from MFI to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes
Overall ranking3 1.4
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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3. Colombia: Home business
Product name (generic or marketing name)
“Seguro de Hogar” (Home insurance)
Product type (e.g. credit life, endowment, motorcycle)
Property
Company name Allianz Colombia
Country Colombia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Microfinance Institution (MFI)
Launch date (and stop date if any)
1 July 2012
1-sentence product description Voluntary Group Property insurance that covers private homes, including those used for home-based business, against damage to the building and its content arising from various risks such as fire, lightening, flooding, windstorm, civil commotion etc.
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Costs of repair or replacement (but not improvement) of home and home content damages due to below risks are covered as follows for Plan 1/Plan 2 respectively
A: Fire, lightening, explosion, windstorm (incl. related rains and floods), falling trees, falling aircraft and vehicle crashes: up to COP 20mn/15mn (~ USD 11,000/8,000)
B: Water damage, flooding, avalanche and landslides: up to COP 5mn/3mn (~ USD 2,500/1,600)
C: Violent strikes, civil commotion and malicious acts by 3rd parties: up to COP 10mn/7.5mn (~ USD 5,000/ 4,000)
D: Actions to contain damage, actions of public authorities and debris removal: up to COP 2mn/1.5mn (~ USD 1,100/800)
Max. sum insured from all risks per home over the entire life of the policy is COP 20mn (~ USD 11,000), i.e. should the accumulated damages exceed that amount, the excess is not covered and coverage will end
Premium range (min, max)
Minimum (Plan 2): COP 4,995 (~ USD 2.75) per month Maximum (Plan 1): COP 6,660 (~ USD 3.60) per month
Avg. premium / year (annualize if necessary)
COP 5,600 (~ USD 3.00)
Other comments
The product is only available to active clients of the MFI, i.e. those who have an active credit and/or savings account with that MFI
Earthquake risk is not covered, as this is not considered important by customers and would significantly increase the premium
A deductible of 10% applies to risks B and C above; risks A and D do not have a deductible
A. Product Specifications
>> back to Overview
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3. Colombia: Home business
Product: Seguro de Hogar Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Colombia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
The MFI distributor targets low-income families, i.e. strata 1 - 3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low maximum loan amount of their micro-credit segment of COP 2.3mn (~ USD 1,300)
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
Several serious risks to home property are covered. The sums insured are high enough to allow micro-entrepreneurs to quickly get back on their feet and resume their home-run businesses after a claim.
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
The product was developed based on strong customer demand to cater to the insurance needs of small entrepreneurs that borrow from the MFI and often run their business out of their private homes
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary for existing customers of the MFI
5 Customer education and feedback mechanisms in place ++
Customers receive verbal explanations from the bank’s staff. Brochures are not used as customers are often semi-literate. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
+ For a property product, design and policy wording are kept relatively simple, with only 2 available coverage plans. Still, time is needed to explain the exact covered risks, the deductibles and the claim procedure.
7 Strong measures to ensure low transaction costs +
Monthly batch processing from MFI to insurer. No on-site claim inspection needed. A claim help desk and a bank agent help desk achieve streamlining of the service processes
Overall ranking3 1.4
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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4. Colombia: Term Life & Maternity
Product name (generic or marketing name)
“Voy Seguro” (I go safely)
Product type (e.g. credit life, endowment, motorcycle)
Term Life
Company name Allianz Colombia
Country Colombia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Microfinance Institution (MFI)
Launch date (and stop date if any)
1 November 2012
1-sentence product description Voluntary Group Term Life Insurance that also provides maternity benefits to the insured or partner during pregnancy and after birth
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Death of the insured due to any cause: COP 4mn basic life benefit + COP 600k for food basket + COP 500k funeral assistance, i.e. total death benefits of COP 5.1mn (~ USD 2,800)
Maternity benefits for insured or partner: COP 400k at 6 months into pregnancy and COP 200k after birth, i.e. total maternity benefits of COP 600k (~ USD 330)
Maximum sum assured per person: COP 32mn (~ USD 18,000), e.g. if a client holds multiple policies of this product
Premium range (min, max)
COP 4,990 per month (~ USD 2.75) One standard plan only; no other premium and benefit options
Avg. premium / year (annualize if necessary)
COP 59,880 (~ USD 33)
Other comments
The product is only available to active micro-loan clients of the MFI (the MFI offers no savings services)
The food basket and funeral assistance benefits are usually paid out as a cash lump sum together with the basic life insurance benefit
90 days waiting period for pregnancy and minor pre-existing conditions 180 days waiting period for major pre-existing conditions (e.g. cancer)
and suicide
A. Product Specifications
>> back to Overview
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4. Colombia: Term Life & Maternity
Product: Voy Seguro Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Colombia is an emerging market according to S&P and a
developing country according to World Bank
C Great majority of insured people or assets from low-income segment
The MFI distributor targets low-income families, i.e. strata 1 - 3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low average loan amount of their borrowers of COP 2mn (~ USD 1,100)
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
Death is a significant risk and coverage includes pre-existing conditions (subject to waiting periods). Moreover, maternity expenses are a very frequent risk even if the related policy benefits are not high.
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
Focus Group Discussions with the MFI customers have strongly influenced the product, for example that the larger part of the maternity benefits is already paid out at 6 months pregnancy. This allows the expectant mothers to prepare in time for the delivery and post-natal phase.
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary option that can be added to the MFIs credit offering
5 Customer education and feedback mechanisms in place ++
Customers receive verbal explanations from the bank’s staff. Brochures are not used as customers are often semi-literate. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
+ Simple, easy to understand product design with only one available standard plan. No health declaration required. However, certain waiting periods and exclusions exist.
7 Strong measures to ensure low transaction costs +
Monthly batch processing from MFI to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes
Overall ranking3 1.4
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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5. Indonesia: Micro-Endowment
Product name (generic or marketing name)
TAMADERA (MencipTAkan MAsa DEpan SejahteRA – Creating a prosperous future)
Product type (e.g. credit life, endowment, motorcycle)
Endowment
Company name Allianz Life Indoneisa
Country Indonesia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
MFI
Launch date (and stop date if any)
November 2010
1-sentence product description
Five years endowment plan that combines fixed weekly or monthly savings with life insurance coverage and protection against
Group or individual product Group (only available for MFI customers and their spouses)
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Death due to any cause + Critical Illness coverage for 5 sicknesses: Cancer, Stroke, Heart Attack, Kidney Failure, Major Burns
Maturity payout of total accumulated premium (i.e. 100% capital guarantee)
Sum Assured & Maturity Benefit: IDR 2,5mn - 25mn (~ USD 270 – 2,700)
Early withdrawal possible from Year 2 onwards, at 15% surrender charge
Premium range (min, max)
IDR 500,000 – 4.8mn per year (~ USD 55 – 520)
Avg. premium / year (annualize if necessary)
IDR 520,000 (~ USD 57)
Other comments Premium can be paid weekly or monthly, starting at IDR 10,000/week (USD 1.1)
Still in pilot phase per Dec 2011 Note: sales of this product have been discontinued since August 2012
while existing policies continue to be inforce.
Additional resources “Learning Journey” case study on TAMADERA (ILO 2012)
A. Product Specifications
>> back to Overview
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5. Indonesia: Micro-Endowment
Product: TAMADERA Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market Indonesia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
All insured are customers of a local MFI which focuses on serving low-income families
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
Good coverage of life risk and attractive and relatively liquid savings portion (capital guaranteed!). Critical Illness only covers part of treatment costs
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
Extensive demand research with 300 potential customers, product acceptance testing with over 100 potential customers and close monitoring of the first 233 enrollment talks (with 33% instant take-up ratio by prospects)
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary for active MFI micro-credit members. TAMADERA membership can be continued even if MFI customers stop borrowing
5 Customer education and feedback mechanisms in place +
A specially trained TAMADERA field coordinator of the MFI is in charge of customer education. Customers receive an explanatory certificate of insurance. However, no direct address or hotline to Allianz is provided
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Very simple benefit structure. Simplified underwriting requirements. Critical Illnesses are those most familiar and easiest to understand for customers
7 Strong measures to ensure low transaction costs +
Web-based administration system in place for automatic enrollment and underwriting, collection, claims assessment and invoicing
Overall ranking3 1.4
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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5. Indonesia: Micro-Endowment
C. Product Brochure
Front Back
>> back to Overview
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6. Ivory Coast: Mobile Funeral Insurance
Product name (generic or marketing name)
“Allianz Obsèques”
Product type (e.g. credit life, endowment, motorcycle)
Term life insurance
Company name Allianz Côte d’Ivoire Assurance Vie
Country Ivory Coast
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Telecommunication company
Launch date (and stop date if any)
1 June 2012
1-sentence product description
Voluntary group life insurance for “mobile money” account holders of the partnering telecommunication company; coverage includes protection against death due to all causes and total permanent disability
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Natural death or total permanent disability: FCFA 500,000 (~ USD 900)
Accidental death: FCFA 1,000,000 (~ USD 1,800) Part of the death benefit (up to 100%) can be chosen as direct
payment to a designated funeral home to cover funeral expenses (i.e. “in kind” benefit)
Premium range (min, max)
FCFA 8,000 (~ USD 14) for yearly or FCFA700 (~ USD 1.3) for monthly payment; premiums are automatically deducted from “mobile money” account
Avg. premium / year (annualize if necessary)
FCFA 8,400 (~ USD 15), based on the fact that most insured choose the monthly premium payment option
Other comments
Age limits are 21 to 65, with disability coverage expiring at age 61 Enrollment still happens by physical form filling at the telco’s outlets, but
premium payment is only possible through mobile money Multiple enrollments are not allowed
A. Product Specifications
>> back to Overview
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6. Ivory Coast: Mobile Funeral Insurance
Product: Allianz Obsèques Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Ivory Coast is a developing country according to World
Bank
C Great majority of insured people or assets from low-income segment
The vast majority of the population of Ivory Coast is low income and the low sums insured also only appeal to low-income segments
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
Death is a significant risk for low-income families in Ivory Coast. Optional direct payment of a part of the benefit to funeral homes helps to insure “proper” payout usage. The “payout to annual premium ratio” of 60 is decent
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary. Moreover, the monthly premium payment option allows for cash-flow friendly payment
5 Customer education and feedback mechanisms in place ++
Customers receive a physical insurance certificate, additional information via SMS and have access to a 8/5 hotline of the insurer
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Policy terms and exclusions are much simplified. No health underwriting and waiting period
7 Strong measures to ensure low transaction costs ++ Premium collection through auto-debit from “mobile money”
accounts is very efficient
Overall ranking3 1.4
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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6. Ivory Coast: Mobile Funeral Insurance
C. Product Brochure
>> back to Overview
Front
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6. Ivory Coast: Mobile Funeral Insurance
C. Product Brochure
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Back
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7. India: Life + Savings
Product name (generic or marketing name)
Sarve Shakti Suraksha (SSS)
Product type (e.g. credit life, endowment, motorcycle)
5-year term life insurance with systematic savings incorporated
Company name Bajaj Allianz Life Insurance Company Limited
Country India
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Non-bank Microfinance Institutions (MFIs), Regional Rural Banks, Banking Correspondents, Customer Support Centers, Cooperatives
Launch date (and stop date if any)
April 2008
1-sentence product description
A combination of term insurance and systematic savings benefits designed to provide risk protection as well as alternative savings opportunities
The product term is 5 years
Group or individual product Group Insurance
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Sum Insured: Minimum INR 2500 (~ USD 50), no limit on maximum coverage (Subject to underwriting limits)
Risks covered: Natural and accidental death + disability
Premium range (min, max)
Minimum INR 500 (~ USD 10) per annum no limit on maximum premium
Avg. premium / year (annualize if necessary)
INR 1,750 (~ USD 35)
Other comments The product has won numerous awards, including the Skoch Award for Financial Inclusion 2011 & 2012
A. Product Specifications
>> back to Overview
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7. India: Life + Savings
Product: Sarve Shakti Suraksha (SSS) Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market India is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Majority of the premiums collected for this product are under INR 2,000 (~ USD 40) per year
D No government subsidies of more than 50% All premiums are paid by the customer.
There is no premium subsidy
1 Significant contribution to risk management of end customers +
SSS offers life coverage and a savings feature but claims and especially savings balances are relatively small, even for low-income Indians. Moreover, in case of RBBs outstanding loan balances are deducted first
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ It is a voluntary opt-in. In some cases premium amounts are also bundled with the loan installments to make the product affordable. However, there is no compulsion from the distribution partner’s side at any point in time
5 Customer education and feedback mechanisms in place ++
Allianz hotline printed on every brochure and policy document. A systematic “Value for the Customer” education initiative has been put in place, too
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Guaranteed issuance except where questions on the health declaration are marked as affirmative. Only exclusion: Suicide not covered in year 1
7 Strong measures to ensure low transaction costs ++
The delivery channel fully integrates the product into existing business processes. Collection is often aligned with loan repayment. Other operational tasks are also outsourced
Overall ranking3 1.3
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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8. Ivory Coast: Funeral Insurance
Product name (generic or marketing name)
COOPEC Solidarité
Product type (e.g. credit life, endowment, motorcycle)
Funeral Insurance
Company name Allianz Ivory Coast
Country Ivory Coast
Distribution partner type (e.g. MFIs, banks, coops, retailers)
UNACOOPEC – Union Nationale des COOPEC de Côte d’Ivoire
Launch date (and stop date if any)
October 2009
1-sentence product description Payment of a lump sum in case of death due to any cause
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Death from XAF 500,000 TO 2,000,000 (~ USD 1,000 – 4,000) Insured can choose to have approx. 60% of Sum Insured paid
directly to an undertaker Plan can cover an individual, a family
(spouses + 3 children), and parents
Premium range (min, max)
FROM XAF 7,500 TO 87,000 (~ USD 15 – 175) per year
Avg. premium / year (annualize if necessary)
XAF 22,000 (~ USD 45)
Other comments Premium can be paid monthly, quarterly, half-yearly or annually
A. Product Specifications
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8. Ivory Coast: Funeral Insurance
Product: COOPEC Solidarité Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Ivory Coast, after 10 years of civil war and a political crisis
in 2011, is more than ever a developing country
C Great majority of insured people or assets from low-income segment
UNACOOPEC members are low-medium segment, with at least 80% of the insured belonging to the 60% of population with the lowest incomes
D No government subsidies of more than 50% Premiums are not subsidized
1 Significant contribution to risk management of end customers + +
Funerals are a significant expense in Ivory Coast, and the product significantly contributes to covering these. Family and even parents can be covered as well at very competitive pricing
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- No tangible other benefits. But the insured has the option that part of the payout is paid to the undertaker to ensure a proper funeral, no matter what
3 End-customers involved in product development - No customer studies
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ 100% voluntary
5 Customer education and feedback mechanisms in place +
Simple language brochures with Allianz contact details are provided. No service hotline and systematic collection of customer feedback.
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Simple product, plain or with max 2 options, no medical selection
7 Strong measures to ensure low transaction costs ++
UNACOOPEC takes charge of distribution, subscription, data and premiums collection, and parts of the claims process. This significantly lowers costs
Overall ranking3 1.3
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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8. Ivory Coast: Funeral Insurance
C. Product Brochure
Outside
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8. Ivory Coast: Funeral Insurance
C. Product Brochure
Inside
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9. Colombia: Group Life Insurance
Product name (generic or marketing name)
Group Term Life
Product type (e.g. credit life, endowment, motorcycle)
Term Life
Company name Allianz Colombia
Country Colombia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Commercial banks with microfinance focus
Launch date (and stop date if any)
1 June 2008
1-sentence product description
Voluntary group life insurance that provides life insurance cover as well as protection against total and permanent disability
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Basic life benefit: COP 5mn – 50mn (~ USD 2,500 – 25,000), depending on plan
Total and permanent disability: COP 5mn – 50mn (~ USD 2,500 – 25,000)
Education and Food Allowance: COP 1.2mn – 6mn (~ USD 600 – 3,000), paid out as lump sum or in 12 equal monthly quotas after death (not for disability)
Premium range (min, max)
COP 4,960 to COP 62,000 (~ USD 2.5 - 30) per month
Avg. premium / year (annualize if necessary)
COP 10,000 (~ USD 5) per month, i.e. COP 120,000 (~ USD 60) per year
Other comments Premiums are paid on a monthly basis. Contracts have now time limitation. As long as monthly premiums are paid, coverage continues. This helps low-income families who often have difficulties to pay annual or even quarterly premiums.
A. Product Specifications
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9. Colombia: Group Life Insurance
Product: Group Term Life Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Colombia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Current distribution partners are banks with an explicit mandate to serve low-income families, especially in all rural areas across the country
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
Life and disability risks are covered. Especially death risk is significant to low-income people. Usage of the education & food allowance is not checked
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Voluntary opt-in
5 Customer education and feedback mechanisms in place ++
Customers receive verbal explanations from the bank’s staff. Brochures are not used as customers are often semi-literate. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk
6 Simple product specifications (e.g. pre-underwritten, few exclusions) +
Simplified underwriting that uses a short declaration of good health; only exclusions for life cover are suicide and homicide. No waiting period
7 Strong measures to ensure low transaction costs +
Monthly batch processing from bank to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes
Overall ranking3 1.1
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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10. Indonesia: Scratch-card Personal Accident
Product name (generic or marketing name)
• Kartu ProteksiKU (“My Protection Card”)
Product type (e.g. credit life, endowment, motorcycle)
• Personal Accident
Company name • Allianz General Indonesia
Country • Indonesia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
• MFIs (Micro Finance Institutions)
Launch date (and stop date if any)
• 2011 (for microinsurance channel: 1-Oct-2012)
1-sentence product description • Personal Accident insurance in form of credit-card sized pre-paid voucher; instant activation and coverage confirmation via SMS
Group or individual product • Individual
Voluntary opt-in, opt-out or compulsory
• Voluntary opt-in
Covered risks & benefits / sum insured
• Death caused by accident: IDR 25mn (~ USD 2,750) • Total permanent disability caused by accident: maximum IDR 25mn (~
USD 2,750) depending on degree of physical disability
Premium range (min, max)
• All vouchers cost IDR 27,500 (~ USD 3.0) and are valid for one year
Avg. premium / year (annualize if necessary)
• IDR 27,500 per year (~ USD 3.00)
Other comments
• The product is also sold through other channels, e.g. tied agents. However, this assessment focuses only on the microinsurance segment, i.e. distribution through MFIs. Business figures are only reported from this channel.
A. Product Specifications
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10. Indonesia: Scratch-card Personal Accident
Product: Kartu Proteksiku Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Indonesia is an emerging market according to S&P and a
developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Product is distributed through MFIs that focus on low-income customers. As the product is voluntary, some insured may actually be better off, but the majority can still be considered low-income in the Indonesian context.
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers -
Personal Accident sold to the general public, i.e. not to a special high risk group (e.g. construction workers), does not contribute significantly to risk management of low-income people as the likelihood of a claim is very low
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
+ The exceptionally high payout-to-premium ratio of 920/1 (USD 2,750 coverage for 3.00 premium) qualifies as a “tangible other benefit”.
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary
5 Customer education and feedback mechanisms in place ++
Customer receives full policy wording as booklet and a handy insurance card to be put in wallet, including Allianz service number and address.
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Simple product format (voucher), automatic acceptance via SMS with no exclusions except age limit. Booklet with full policy wording is a bit lengthy.
7 Strong measures to ensure low transaction costs +
SMS activation and single premium payment minimize distribution and collection costs. Claim settlement is traditional. No integrated IT system.
Overall ranking3 1.1
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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10. Indonesia: Scratch-card Personal Accident
C. Policy Document
Policy booklet (cover)
>> back to Overview
Policy booklet (first inside page)
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10. Indonesia: Scratch-card Personal Accident
C. Policy Document
Insurance card (front)
>> back to Overview
Insurance card (back)
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11. Malaysia: Motorcycle + PA
Product name (generic or marketing name)
Motorcycle & Personal Acccident
Product type (e.g. credit life, endowment, motorcycle)
Motorcycle & Personal Accident
Company name Allianz General Malaysia
Country Malaysia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Postal Service
Launch date (and stop date if any)
1 July 2011
1-sentence product description Motorcycle coverage for third-party liability and (optional) loss and damage to due to accident + Personal Accident as semi-bundled extra offer
Group or individual product Individual
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Motorcycle loss & damage: maximum current market value of motorcycle
PA: Death due to accident: MYR 5,000 (~ USD 1,600) PA: Total permanent diability or dismemberment:
MYR 5,000 (~ USD 1,600) PA: Bereavement benefit: MYR 500 (~ USD 160)
Premium range (min, max)
for Motorcylce: n.a.; for PA: MYR 15 (~ USD 5) per year
Avg. premium / year (annualize if necessary)
For Motorcycle: MYR 100 (~ USD 33) For PA: MYR 15 (~ USD 5)
Other comments Motorcycle premiums vary per brand and engine volume Product is also marketed by tied agents at different premiums
(excluded here) Third-party liability cover is a statutory requirement for motorcycles in
Malaysia. Additional motorcycle cover and personal accident cover are voluntary
A. Product Specifications
>> back to Overview
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11. Malaysia: Motorcycle + PA
Product: Motorcycle & PA Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market Malaysia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Customer base of postal service is generally low-income, especially for insurance sales
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers ++
Motorcycle coverage is comparable in importance to car coverage in developed markets. It is a statutory requirement in Malaysia. PA is sensible for motorcyclist as a high risk group
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Several options to choose from: Third-Party liability only (a statutory requirement), comprehensive (TPL + loss & damage) and on-top Personal Accident cover
5 Customer education and feedback mechanisms in place ++
Brochures and policy documents are provided, including an Allianz customer service hotline. Coverage is widely used and well known in Malaysia.
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
- Motorcycle policy wording is quite lenghty, the same as for all other distribution channels (e.g. tied agents), and the same as for car insurance
7 Strong measures to ensure low transaction costs +
Distribution through low-cost Malaysian postal service allows somewhat lower distribution and operational costs (e.g. vis-à-vis tied agents)
Overall ranking3 1.0
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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11. Malaysia: Motorcycle + PA
C. Product Brochure
Outside Personal Accident only. No brochure for Motorcycle component.
>> back to Overview
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11. Malaysia: Motorcycle + PA
C. Product Brochure
>> back to Overview
Inside Personal Accident only. No brochure for Motorcycle component.
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12. West Africa: Credit Life
Product name (generic or marketing name)
• Assurance Décès Emprunteur (Life Insurance for Entrepreneurs)
Product type (e.g. credit life, endowment, motorcycle)
• Credit Life Insurance
Company name • Allianz Africa and local subsidiaries
Country • Cameroon, Burkina Faso, Egypt, Ivory Coast, Madagascar, Senegal
Distribution partner type (e.g. MFIs, banks, coops, retailers)
• Microfinance Institutions (MFIs)
Launch date (and stop date if any)
• 13-Jan-2008
1-sentence product description • In case of death of the loan taker due to all causes or in case of total permanent disability of the loan taker due to accident, Allianz repays 100% of the initial loan amount
Group or individual product • Group
Voluntary opt-in, opt-out or compulsory
• Compulsory
Covered risks & benefits / sum insured
• Death of the loan taker due to all causes • Update: Death of spouse (as voluntary add-on, Senegal only) • Total permanent disability of the loan taker due to accident (medically
certified) • Sum Insured: 100% of the initial loan amount from which:
• The MFI receives the outstanding loan balance • The micro-entrepreneur’s family receives the difference
between the initial loan amount and the outstanding loan balance
Premium range (min, max)
• Avg. 0.6% of loan amount (depending on risk characteristics of the insured group)
Avg. premium / year (annualize if necessary)
• USD 3 per loan • loans run for an average of 12 months with an avg. loan size USD 540
Other comments • Developed and distributed in cooperation with Planet Guarantee (except Cameroon and Ivory Coast)
A. Product Specifications
>> back to Overview
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12. West Africa: Credit Life
Product: Assurance Décès Emprunteur Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market
Burkina Faso, Cameroon, Egypt, Ivory Coast, Madagascar and Senegal are all developing countries according to World Bank
C Great majority of insured people or assets from low-income segment
The vast majority of insured are low income micro-entrepreneurs. This can be seen from their average loan size of USD 540 (data from Cameroon and Ivory Coast not included)
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers +
Death is a significant risk and there is a direct payout to the family (after deduction of the loan balance). Coverage of HIV+ or diabetic entrepreneurs facilitates their access to credit. Accidental disability risk is less significant
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
A market and demand study was done. Product design and education materials were pilot tested with micro-entrepreneurs
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
- The product is compulsory for the credits of all MFI partners
5 Customer education and feedback mechanisms in place -
The MFI’s credit officers are trained to orally explain the product to their clients, but no local language material for the customer. Regular exchange on customer complaints between MFIs and the broker (Planet Guarantee)
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ No pre-underwriting. Only 3 exclusions (suicide, radiation, war). No medical exclusions. Simplified disability definition and easy claims documentation
7 Strong measures to ensure low transaction costs ++
The mandatory underwriting-free group insurance approach lowers transaction costs. Most processes are outsourced to the MFIs and the broker (Planet Guarantee) which operate on lower costs than Allianz
Overall ranking3 1.0
>> back to Overview
B. Product Assessment1
C. Product Brochure: not available
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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13. West Africa: Crop Index
Product name (generic or marketing name)
Assurance Récolte Sahel (Sahel Harvest Insurance)
Product type (e.g. credit life, endowment, motorcycle)
Index insurance
Company name Allianz Africa and local subsidiaries
Country Burkina Faso and Mali
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Microfinance Institutions (MFIs), banks, agricultural cooperatives and agro-dealer networks
Launch date (and stop date if any)
1 June 2011
1-sentence product description Covers outstanding loans of smallholder farmers; claims are triggered automatically if the rainfall is insufficient for proper growth of the farmers’ crops (corn or cotton)
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Compulsory
Covered risks & benefits / sum insured
If evapotranspiration index1 below 54 – 58% (depending on crop and region), i.e. total crop failure: Full coverage of outstanding loan amount
If evapotranspiration index* between approx 65% and 54 – 58%, i.e. partial crop failure: Partial coverage of outstanding loan amount
Premium range (min, max)
10 – 12% of loan amount, depending on crop and region
Avg. premium / year (annualize if necessary)
USD 27 per loan; avg. loan size is USD 235 (avg. loan duration: 3.5 months)
Annualization not applicable because planting season only lasts 3.5 months
Other comments Only sold in a 4 - 6 weeks sales window before planting season Expansion to more markets and crops types is planned 100% of the risk is reinsured by international reinsurance partners Developed and distributed in cooperation with
Planet Guarantee
A. Product Specifications
>> back to Overview 1) Evapotranspiration is the sum of evaporation of water from plants and soil.
This index is independently measured by third parties using satellite data.
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13. West Africa: Crop Index
Product: Assurance Récolte Sahel Ranking2 Rationale / Comments
A Insurance principles applied Applied. The risk of insufficient rainfall in the insured areas is high. This is why the premium rate is also relatively high at around 10-12%
B Developing country or emerging market Burkina Faso, Mali and Senegal are developing countries
according to World Bank
C Great majority of insured people or assets from low-income segment
The vast majority of insured are low income farmers. This can be seen from their small farm sizes (avg. 1.3 ha) and their low avg. loan size of USD 235
D No government subsidies of more than 50%
No government subsidies. However, an initial grant by AGRA (Alliance for a Green Revolution in Africa) helped with product development and piloting
1 Significant contribution to risk management of end customers ++
Low rainfall is a great risk for farmers. Outstanding loans are hard to repay when harvests fail. The product addresses this and eases access to credit
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
Extensive market and demand study before product development. Product and education materials were pilot tested with a small number of farmers.
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
- Although the product can be offered on a voluntary basis, virtually all current distribution partners have made coverage mandatory for their agro-loans
5 Customer education and feedback mechanisms in place +
Intensive training of distribution channels and their field representatives. Raising of awareness through posters, radio, film. However, no access to a hotline or systematic feedback mechanism
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
+ No underwriting and no exclusions. Conceptually, the index is straightforward. But the exact technical definition and measurement method is complex. The product therefore requires in-depth explanation
7 Strong measures to ensure low transaction costs +
The (mandatory) group insurance approach lowers transaction costs. The claims process is simplified by the index as it allows automatic triggering of claims. Reinsurance coverage is essential and needs to be administered
Overall ranking3 1.0
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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13. West Africa: Crop Index
C. Product Brochure
Flyer examples
>> back to Overview
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13. West Africa: Crop Index
C. Product Brochure
>> back to Overview
Inside Personal Accident only. No brochure for Motorcycle component.
Product brochure from Mali
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14. India: Cattle & Livestock
Product name (generic or marketing name)
Cattle & Livestock Insurance Policy
Product type (e.g. credit life, endowment, motorcycle)
Livestock insurance
Company name BajajAllianz General Insurance
Country India
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Banks, MFI, Co-ops Dairies, Credit Co-operative Societies, Business Correspondents
Launch date (and stop date if any)
Apr-2005
1-sentence product description
Coverage for cattle and other livestock (e.g. sheep and goats) against the risk of death due to multiple causes + additional disability option to insure failure to produce milk or to reproduce due to certain illnesses
Group or individual product Mostly group (85%), but individual purchase also possible (15%)
Voluntary opt-in, opt-out or compulsory
Mostly compulsory, but voluntary purchase is also possible
Covered risks & benefits / sum insured
Death: Agreed Sum Assured, i.e. generally market value of cow, on average INR 30,000 - 40,000 (~ USD 600 - 800)
Disability: Percentage of Sum Assured
Premium range (min, max)
n.a
Avg. premium / year (annualize if necessary)
INR 800 - 1,200 (~ USD 16-24)
Other comments The product is often tied to bank loans for cattle for low-income farmers where the loans themselves carry low interest rates due to government subsidies
A. Product Specifications
>> back to Overview
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14. India: Cattle & Livestock
Product: Cattle/Livestock insurance Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market India is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
The great majority of coverage is tied to government-subsidized loans for low-income farmers
D No government subsidies of more than 50%
No government subsidies for insurance premiums. However, interest rates on the underlying loans (if any) are mostly subsidized
1 Significant contribution to risk management of end customers ++
Cows are a crucial income source for millions of low-income Indian farmers. Death or disability to produce/reproduce can cause severe financial stress
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No – in earlier days there was committee before
privatization
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
+ The product can be purchased individually. The disability rider is also optional. However, when tied to bank loans, the product is compulsory
5 Customer education and feedback mechanisms in place ++ Limited customer information provided,
but still awareness is very high
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
- The policy wording is quite long and technical. No product difference is made for low-income customers vis-à-vis large scale farmers (although most claims get paid as benefit to low-income people)
7 Strong measures to ensure low transaction costs +
Ear tags are used to reduce fraud and associated costs. Distribution mainly through banks also reduces distribution and operational costs
Overall ranking3 0.9
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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15. India: Personal Accident Plus
Product name “Micro Care”
Product type (e.g. credit life) Enhanced Personal Accident
Company name BajajAllianz General Insurance Company Limited
Country India
Distribution partner type Banks, MFIs
Launch date (and stop date if any)
1 April 2008
1-sentence product description
Yearly renewable voluntary personal accident insurance that – next to coverage for accidental death and disability – offers a range of additional benefits, incl. hospitalization benefits and even a hospital cash component for sickness
Group or individual product Individual
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Death or severe dismemberment/total permanent disability due to accident: sum insured min INR 25,000 – 50,000 (~ USD 500 – 1,000)
Partial dismemberment (loss of 1 eye or 1 hand or foot): 50% of sum insured
Lump sum funeral expenses after accidental death: INR 5,000 (~ USD 100)
Lump sum education grant after accidental death: INR 10,000 (~ USD 200)
Hospitalization due to accident: max INR 5,000 (~ USD 100) per year Wage loss: INR 150 (~ USD 3)/hospital day due to
accident; max 5 days/year Hospital cash: INR 300 (~ USD 6)/hospital day due to
accident OR illness; max 5 days/year
Premium range (min, max)
INR 150 - 300 (~ USD 3 - 6) per year
Avg. premium / year INR 190 (~ USD 3.8)
Other comments
Cancellation with a partial premium refund is possible within the first 6 months of the yearly policy term
Micro Care is based on Janata Personal Accident but gives additional benefits
A. Product Specifications
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15. India: Personal Accident Plus
Product: Micro Care Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market India is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Distribution partners focus on low-income households. This can also be seen from the low average premiums of INR 190 (~ USD 3.8) per year
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers +
Risk cover for accidental death and disability is comprehensive. Additional hospitalization coverage helps to manage this key risk, even including hospital cash for sickness. However, related benefits are low
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development ++
Yes, an extensive customer demand study was undertaken in cooperation with an international NGO prior to product development
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Voluntary opt-in
5 Customer education and feedback mechanisms in place -
Currently all information to customers is oral. No brochures etc. Policy documents are in English which most customers do not understand.
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
- The product is pre-underwritten. However, the comprehensive risk cover causes complexity. Multiple exclusions, especially due to hospital cash cover. Policy wording not simplified
7 Strong measures to ensure low transaction costs +
Collection is handled by the distribution partner. New enrollments and collection data are processed every 15 days as a simple batch processes
Overall ranking3 0.9
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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16. India: Group Term Life
Product name (generic or marketing name)
Group Term Life
Product type (e.g. credit life, endowment, motorcycle)
Pure Risk Insurance coverage for a period of one year
Company name Bajaj Allianz Life Insurance Company Limited
Country India
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Non-bank Microfinance Institutions (MFIs)
Launch date (and stop date if any)
Not available
1-sentence product description
An insurance product designed to provide risk protection against natural death to the end customer
Other benefits include an accidental death & disability rider
Group or individual product Group Insurance
Voluntary opt-in, opt-out or compulsory
Compulsory
Covered risks & benefits / sum insured
Sum Insured: Minimum INR 1,000 (~ USD 20), no limit on maximum coverage
Risks covered: Natural and accidental death Disability rider is optional
(but rarely implemented in microfinance context) MFIs deduct the outstanding loan balance (if any)
from the sum insured
Premium range (min, max)
Depending on the group, underwriting rate is set by the company’s underwriter
Varies based on group demographics
Avg. premium / year (annualize if necessary)
INR 100 (~ USD 2)
Other comments The product is distributed through various channels, most of which do not focus on low-income people. However, this assessment is on the MFI-segment only
A. Product Specifications
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16. India: Group Term Life
Product: Group Term Life Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market India is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
All loan customers of MFIs are enrolled in the scheme. The great majority of MFI customers are low to very low income
D No government subsidies of more than 50% All premiums are paid by the customer.
There is no premium subsidy
1 Significant contribution to risk management of end customers +
The product covers natural and accidental death. Disability is rarely offered. The sum insured allows for outstanding loan balances (if any) to be paid off. The difference is paid to the beneficiaries, but is often only a small amount
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
- In the context of an MFI opting for this product, it is compulsory. This applies to both the group lending and individual lending models
5 Customer education and feedback mechanisms in place +
Customers receive insurance certificates of insurance with Allianz name and address. No service line and systematic feedback collection in place
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Simplified product design and easy to explain. The only exclusion is suicide not being covered in year 1. It is covered for repurchases from year 2 on
7 Strong measures to ensure low transaction costs ++
Distribution and collection is outsourced to the MFI for lower costs. The MFIs also forward certificates of insurance & assist with claims
Overall ranking3 0.9
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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17. Indonesia: Credit Life Plus
Product name (generic or marketing name)
Payung Keluarga (Family Umbrella)
Product type (e.g. credit life, endowment, motorcycle)
Enhanced Credit Life (Credit Life Plus)
Company name Allianz Life Indonesia
Country Indonesia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
MFIs, with some MFIs acting as aggregators for other MFIs
Banks
Launch date (and stop date if any)
1 Sep 2006
1-sentence product description
Compulsory group credit life coverage with flexible benefits Benefit package decided by group policyholder (not by borrowers) Takaful/Sharia version available
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Compulsory
Covered risks & benefits / sum insured
Risk: Death of debtor and spouse (optional) Benefit: Outstanding loan balance, or original loan balance Additional “funeral” benefit of up to 2x original loan balance (optional) Loans: IDR 0 – max. 200mn (~ USD 22,000).
Maximum loan tenor: 5 years
Premium range (min, max)
IDR 100 to 1mn (~ USD 0.1 – 110), depending on loan amount, tenor & benefits
Avg. premium / year (annualize if necessary)
IDR 12,000 (~ USD 1.3)
Other comments Approx. 10% of portfolio use takaful version Modular product with theoretically 54 different
benefit configurations
Additional resources Case Study: How Allianz Indonesia reached over 1 million with microinsurance (Allianz 2013)
A. Product Specifications
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17. Indonesia: Credit Life Plus
Product: Payung Keluarga Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market Indonesia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
98% of insured loans are under IDR 5mn (~ USD 550). This serves as a reliable proxy for „majority low income“ customers
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers +
Death risk is significant. However, most loans are covered for the outstanding balance only. Additional benefits apply to approx. 20% of loans
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development +
Extensive market research to understand target market. However, life risk only top4 of identified customer risks. Limited product acceptance testing
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
- Fully compulsory for customers. The only choice customers have is to nominate their beneficiary for extra payouts (if any)
5 Customer education and feedback mechanisms in place -
Brochures are provided to MFIs willing to distribute. Direct helpline or Allianz address is not provided. No systematic feedback collection
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Free coverage limit up to IDR 10mn (~ USD 1,100). Only 2 exclusions: Suicide and insurance related crime (+ age limit 17-60)
7 Strong measures to ensure low transaction costs ++
Product, distribution and collection are fully integrated with MFI micro loans. Most of the data entry and claims handling is also “outsourced” to the MFIs
Overall ranking3 0.9
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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17. Indonesia: Credit Life Plus
C. Product Brochure
>> back to Overview
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18. Egypt: Credit Life
Product name (generic or marketing name)
Credit Life (no specific marketing name)
Product type (e.g. credit life, endowment, motorcycle)
Group Credit Life
Company name Allianz Assurance
Country Egypt
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Microfinance Institutions (MFI)
Launch date (and stop date if any)
1 Feb 2012
1-sentence product description Compulsory group credit life coverage Premium either paid by borrower or by MFI
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Compulsory
Covered risks & benefits / sum insured
Risk: Death of debtor Benefit: Original loan balance Permanent disability coverage available (optional) Loans: EGP 0 – 100,000 (~ USD 16,000)
Premium range (min, max)
EGP 2 to 1,800 (~ USD 0.33 - 300) per year, depending on loan amount, tenor and benefit package
Avg. premium / year (annualize if necessary)
EGP 15 (~ USD 2.50)
Other comments Monthly premium payment possible
A. Product Specifications
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18. Egypt: Credit Life
Product: Credit Life Ranking2 Rationale / Comments
A Insurance principles applied Fully applied
B Developing country or emerging market Egypt is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Average loan balance per borrower approx. EGP 3,500 (~ USD 580), which reflects a typical MFI profile and is a good proxy for low-income customers
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers +
Next to death, disability is also covered. The initial loan balance is insured. After deduction of the loan balance, beneficiaries receive a small payout
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None.
3 End-customers involved in product development - No involvement of end-customers
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
- Compulsory product
5 Customer education and feedback mechanisms in place -
No brochures, certificate of insurance or other product information provided to the insured. Also no direct contact possibility to Allianz given (hotline etc.)
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Underwriting rules and claim processing requirements were relaxed compared to normal product implementations
7 Strong measures to ensure low transaction costs ++
Distribution and collection fully integrated into the MFIs micro-loan process. MFIs also do data entry and help with claims handling
Overall ranking3 0.7
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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19. Madagascar: Mobile Personal Accident
Product name (generic or marketing name)
Mobile Personal Accident
Product type (e.g. credit life, endowment, motorcycle)
Personal Accident
Company name Allianz Madagascar
Country Allianz
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Orange Telecom and their airtime distributors
Launch date (and stop date if any)
July 2011
1-sentence product description
Personal Accident coverage that can be purchased through mobile credit deductions or cash payments in installments and provides coverage as soon as minimum premium for 1 month cover is achieved. Max. pre-paid cover is 1 year
Group or individual product Individual product
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Accidental Death. Sum insured equivalent to MGA 2mn (~ USD 915)
Premium per month equivalent to MGA 5,000 (~ USD 2.20) per month
Premium range (min, max)
Fixed at MGA 5,000 (~ USD 2.20) per month Premium can also be paid up in installments of as low as MGA 500
(~ USD 0.22)
Avg. premium / year (annualize if necessary)
MGA 60,000 (~ USD 26)
Other comments Up to 5 plans can be purchased and activated simultaneously per person
If premium is paid for in installments, coverage only starts when a month’s worth of premium has been accumulated, i.e. MGA 5,000
A. Product Specifications
>> back to Overview
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19. Madagascar: Mobile Personal Accident
Product: Mobile Personal Accident Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market Madagascar is a developping country according
to World Bank
C Great majority of insured people or assets from low-income segment
Yes, almost per default, because most population in Madagascar is very poor
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers -
Personal Accident with payout to premium factor of 35 to 1 and offered to the general population contributes little to efficient management of key risks
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None. However, reminder SMS are sent to advice customers to renew.
3 End-customers involved in product development -
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Fully voluntary
5 Customer education and feedback mechanisms in place -
The insurance certificate has a number for claims submission which customers can call, but this is mostly for claims submission
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
++ Pre-underwritten with instant enrollment through mobiles. Premiums can be paid in small mobile installments which suits low-income customers
7 Strong measures to ensure low transaction costs +
Mobile technology simplifies enrollment and collection. However, claims are still handled by the insurance and a 3rd party intermediary is involved, too
Overall ranking3 0.7
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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20. India: Personal Accident
Product name (generic or marketing name)
“Janata” Personal Accident
Product type (e.g. credit life, endowment, motorcycle)
Personal Accident
Company name BajajAllianz General Insurance Company Limited
Country India
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Banks, MFIs
Launch date (and stop date if any)
1 April 2006
1-sentence product description Yearly renewable voluntary personal accident insurance that covers accidental death and disability
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
Death or severe dismemberment/total permanent disability due to accident: sum insured min INR 25,000 – 50,000 (~ USD 500 – 1,000)
Disability is defined as a) severe dismemberment or b) total and permanent inability to pursue any kind of work
Partial dismemberment (loss of 1 eye or 1 hand or foot): 50% of sum insured
Premium range (min, max)
INR 15 - 60 (~ USD 0.3 – 1.2) per year
Avg. premium / year (annualize if necessary)
INR 30 (~ USD 0.6)
Other comments “Janata” Personal Accident is essentially the same product as “Micro Care” but without any additional benefits
A. Product Specifications
>> back to Overview
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20. India: Personal Accident
Product: Janata Personal Accident Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market India is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Distribution partners focus on low-income households. This can also be seen from the low average premiums of INR 30 (~ USD 0.6) per year
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers -
Death or disability due to accident is rare among the general population, i.e. only a minor risk. Moreover, the definition of “total permanent disability” is relatively strict, requiring complete inability to pursue any kind of work
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
- None
3 End-customers involved in product development - No
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
++ Voluntary opt-in
5 Customer education and feedback mechanisms in place -
Currently all information to customers is oral. No brochures etc. Policy documents are in English which most customers do not understand
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
- The product is pre-underwritten. However, multiple exclusions exist. Policy wording is not simplified
7 Strong measures to ensure low transaction costs +
Collection is handled by the distribution partner. New enrollments and collection data are processed every 15 days as a simple batch processes
Overall ranking3 0.4
>> back to Overview
C. Product Brochure: not available
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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21. Ivory Coast: Mobile Savings
Product name (generic or marketing name)
“Allianz Epargne”
Product type (e.g. credit life, endowment, motorcycle)
Pure savings plan (no risk element)
Company name Allianz Côte d’Ivoire Assurance Vie
Country Ivory Coast
Distribution partner type (e.g. MFIs, banks, coops, retailers)
Telecommunication company
Launch date (and stop date if any)
1st June 2012
1-sentence product description
Mobile savings plan with regular contributions for min. 3 years with 85% investment earnings on the net premium credited to the account value (example: 10% investment total return on net premiums 8,5% credited to account)
Group or individual product Group
Voluntary opt-in, opt-out or compulsory
Voluntary opt-in
Covered risks & benefits / sum insured
At the end of the savings plan’s term, or in case of prior death or total permanent disability, the account value accumulated until this date will be returned in full to the account holder
Benefits: terminable annuities chosen by the insured Max. 30% of the account value can be withdrawn every year
(except in year 1) at no penalty; total withdraw is possible after two years at 5% surrender fee
Premium range (min, max)
Premiums are minimum FCFA 3,000 (~ USD 5) per month Premiums can also be paid quarterly, semi-annually
or annually Premiums are automatically deducted from
“mobile money” account Premiums are subject to an administration fee of 6.6%,
the net of which will be invested with annual results credited 85% to the account
Avg. premium / year (annualize if necessary)
FCFA 40,000 (~ USD 70), based on the fact that most policyholders choose the monthly premium payment option
Other comments
Minimum age limit is 21; no maximum age limit Enrollment still happens by physical form filling at
the telco’s outlets, but premium payment is only possible through mobile money
A. Product Specifications
>> back to Overview
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21. Ivory Coast: Mobile Savings
Product: Allianz Epargne Ranking2 Rationale / Comments
A Insurance principles applied This product is a pure savings product without any risk coverage in it. Therefore it cannot be considered a (micro)insurance product. Knock-Out.
B Developing country or emerging market Ivory Coast is a developing country according
to World Bank
C Great majority of insured people or assets from low-income segment
The vast majority of the population of Ivory Coast is low income. Moreover, the low sums insured only appeal to low-income segments
D No government subsidies of more than 50% No government subsidies
1 Significant contribution to risk management of end customers
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
3 End-customers involved in product development
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
5 Customer education and feedback mechanisms in place
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
7 Strong measures to ensure low transaction costs
Overall ranking3 not micro
Note: Product is not considered micro due to failure on criterion A
>> back to Overview
B. Product Assessment1
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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21. Ivory Coast: Mobile Savings
C. Product Brochure
>> back to Overview
Front
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21. Ivory Coast: Mobile Savings
C. Product Brochure
>> back to Overview
Back
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22. Malaysia: Life & Personal Accident
Product name (generic or marketing name)
1AZAM plan (AZAM = Akhiri Zaman Miskin, i.e. the End of the Poverty Era)
Product type (e.g. credit life, endowment, motorcycle)
Group Life & Group Personal Accident
Company name Allianz Life Insurance & Allianz General Insurance (bundled)
Country Malaysia
Distribution partner type (e.g. MFIs, banks, coops, retailers)
National Welfare Foundation Malaysia (Government agency)
Launch date (and stop date if any)
Launch: 1-Jan-2011; End: 31-Dec-2011 (after government subsidies stopped)
1-sentence product description Government sponsored life insurance program for 100,000 households classified as very poor by the government.
Group or individual product Group insurance
Voluntary opt-in, opt-out or compulsory
Automatic enrollment by the National Welfare Foundation Malaysia
Covered risks & benefits / sum insured
Natural death: Insured MYR 15,000; spouse 1,000; child 500
Accidental death: Insured MYR 25,000; spouse 11,000; child 5,500
Premium range (min, max)
MYR 120 flat for insured, spouse and 2 children
Avg. premium / year (annualize if necessary)
MYR 120 Premium paid by the National Welfare Foundation Malaysia
Other comments Natural death cover is provided by Allianz Life Insurance
Accidental death cover is provided by Allianz General Insurance
A. Product Specifications
>> back to Overview
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22. Malaysia: Life & Personal Accident
B. Product Assessment1
Product: 1AZAM plan Ranking2 Rationale / Comments
A Insurance principles applied Applied
B Developing country or emerging market Malaysia is an emerging market according to S&P
and a developing country according to World Bank
C Great majority of insured people or assets from low-income segment
Yes, 100% of insured are “very poor” according to government definition
D No government subsidies of more than 50%
Premium 100% subsidized by Malaysian government in 2011. Knock-Out. Discontinued because government support discontinued in 2012
1 Significant contribution to risk management of end customers
2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)
3 End-customers involved in product development
4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)
5 Customer education and feedback mechanisms in place
6 Simple product specifications (e.g. pre-underwritten, few exclusions)
7 Strong measures to ensure low transaction costs
Overall ranking3 not micro
Note: Product is not considered micro due to failure on criterion D
>> back to Overview
C. Product Brochure: not available
1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success
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Disclaimer
These assessments are, as always, subject to the disclaimer provided below.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include statements of future expectations and other forward-looking
statements that are based on management’s current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or events to differ materially from those
expressed or implied in such statements. In addition to statements which are forward-looking by reason of context,
the words “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”,
“potential”, or “continue” and similar expressions identify forward-looking statements. Actual results, performance
or events may differ materially from those in such statements due to, without limitation, (i) general economic
conditions, including in particular economic conditions in the Allianz Group’s core business and core markets, (ii)
performance of financial markets, including emerging markets, and including market volatility, liquidity and credit
events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the
development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent
of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange
rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and
the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the
impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general
competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be
more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
No duty to update.
The company assumes no obligation to update any information contained herein.
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