microinsurance the jordanian experience mazen a. nimri fcii flmi deputy gm / life and medical dep....
TRANSCRIPT
MicroinsuranceThe Jordanian Experience
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Increasing Resilience through Hospitalization Coverage:Case Studies from the Middle East and Africa
Jordan • Located in the Heart of the Middle
East
• Small country , Big ambitions
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
• Oldest Insurance Company in Jordan 1951
• Composite Insurer (Life and Non-life)
• Highest paid up capital in Jordan JD 30 million (USD 42 million)
• Headquartered in Jordan with Regional Branches in UAE and Kuwait
• 10% Ownership by Munich Re
• Technical team of experts
• Rated by AM Best (FSR B++/ICR bbb+)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
5.1%5.9%
7.9%8.9%
11.7%
14.3%
17.6%
19.8%
21.6%
23.9%24.5% 25.1%
Growth of Market ShareJIC Life
MicroinsuranceStrategic Partnership with MFW
• Strategic Partnership with MFW– Trust
– Transparency
– Commitment
– Utmost good faith
• Risk Transfer Mechanism– JIC covers the loan plus an additional amount in case of
death/disability
– Sustainability of the MFW operations
• Social Participation– Commitment to elevating social standards
• Economic Support– Support the community and economy
Microinsurance
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
• New Market Segment Penetration– Non-conventional target
market
• New Experience– Wealth of knowledge
– New Products
– Different Procedures
• Profits / Pricing?– High Loss ratios
– Price adjustments based on experience
– Benefits enhancements (Spouse Insurance)
Microinsurance
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
• Sponsorships• Very Important for
spreading insurance awareness
• Radio + TV• Ads• Brochures and Flyers
• Very minimal procedures– No Underwriting – experience driven
– Efficient Premium collections
– Speedy Claims Settlements
– Easy Accounts reconciliation
• Claims Authority Transfer to MFW– Efficiency
– Accuracy
– Popper follow up
– Valued Partnership - Trust
Procedures
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Product Development
Term Life(Life of
borrower)
Pay Loan Amount
Pay Additional Amount to
Beneficiaries
Term Life(Life of SPOUSE)
Pay a Lump Sum Amount to
Borrower
Riaya“Care Giver”
Hospital Cash(borrower)
Pay Lump Sum Amount per night stay at
Hospital
Hospital Cash(Dependants- Spouse and Children)
Pay Lump Sum Amount per night stay at
Hospital
Riaya
No Underwriting or pre-medical exams
Up to 48 nights
Affordable Premium
Minimal Exclusions
$21 / night spent
@ Hospital
Riaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Develop the product for the right reason
(serving your client)
Use pilot program to validate the product
Keep a close eye on your indicators Keep it simple
Riaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Riaya
Riaya
2010 2011 2012 2013 2014 20150
20,000
40,000
60,000
80,000
100,000
120,000
5,181
47,356
78,131
94,959104,166
113,031
Number of Active Clients
Riaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
37.15%
11.38%
7.82%
7.81%
7.51%
5.61%
5.23%
4.18%
4.06%
3.97%
3.92% 0.76% 0.60% Delivery / Gyno
Internal
Cardiac
General (Bones, Muscle, ….)
Pulmonary / Allergy
Cancer
Urinary and Genital
Blood
Endocrine / Diabites
Accidents
Dermal
Optical/ Dental
ENT
Riaya / Admission Reasons
Private8%
Military20%
Public72%
Type of hospitalRiaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Average Claim frequency
JIC / MFW Ministry of health
7.54% 13.9%
Fraud
less than 2%
Average Hospital stay
JIC / MFW Ministry of health
3.6 2.3
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Premium
Monthly $1 -$1.5
WIN WIN WIN
Insurer MFI
Client
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
