November 2015

PlaNet GuaranteePOSITIVE PLANET GROUP

Agenda

I. Overview of PlaNet GuaranteeI.a. VisionI.b. Organization and key figuresI.c. Partner network

II. ActivitiesII.a. Crop insuranceII.b. Life and Personal AccidentII.c. Insurance Engineering

III. Future DevelopmentIII.a. Innovative productsIII.b. Innovative DistributionIII.c. Technology

Crop

Health and Life

Insurance Engineering and Services

Technical assistance Feasibility and Market Studies Risk analysis and definition of guarantees

Product development Micro-reinsurance brokerage

Products Key Success Factors

Innovative products

Products tailored to needs and elaborated with the clients and endbeneficiaries

Simplicity in implementation and management

Strong partnerships with leading insurers and reinsurers

Product development Micro-reinsurance brokerage

Vision

The objective of PlaNet Guarantee is to enable populations excluded from traditional insurance systems and not benefitting from social protection mechanisms to protect themselves against all types of risks: health, natural catastrophe, death, disability, accident,…

I. Overview of PlaNet Guaranteea. Vision

As an insurance broker, PlaNet Guarantee has developed a tailored social insurance offer and proposes a range of services in technical assitance and risk analysis.

I. Overview of PlaNet Guarantee in AFRICAb. Organization and key figures

100% 100% 100%

International

PlaNet Guarantee Senegal

PlaNet Guarantee Burkina Faso

PlaNet Guarantee Mali

PlaNet Guarantee Ivory Coast

100%

70%10% 20%

INTRODUCTION

• Broker and advisor specialized in inclusive insurance and social protection since 2007

• Development of insurance products for people excluded from the conventional insurance system

• Design and implementation of technological solutions to push the boundaries of accessibility of insurance

• Growth sustained by breakthrough innovations in insurance and microinsurance with the use of index technologies and social networks

KEY FIGURES

• Headcount: 30

• Ongoing activities in 12 countries=> Fully licensed broker in 4 countries: Burkina Faso, Ivory Coast, Mali and Senegal (Benin in progress)

• 900,000 cumulated policies since 2008 representing 4 million beneficiaries

• 200,000 policies in 2014 via 50 insured groups in West Africa

• Headquartered in France with 1 operational platform based in Dakar employing 10 people

ORGANIZATION

TECHNICAL PARTNERS

REINSURANCE PARTNERSINSURANCE PARTNERS FINANCIAL PARTNERS

DISTRIBUTORS

I. Overview of PlaNet Guaranteec. Partner Network

Variability in agricultural seasons and

extreme climatic events

Agricultural insurance indispensable to protect farmers and strengthen the agricultural sector:

• By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities.

• By increasing access to credit and securing the financial sector , agricultural insurance can attract more financing into the sectors(funds invest in banks /MFIs).

Food insecurity

Revenue Losses Excluded from contracting

another credit

Barrier to investing in

better quality seeds and equipment

Increased risk of bad harvests

Farmers forced to dip into their

savings to sustain

themselves

Inability to pay back the credit

II. Activitiesa. Crop Insurance

The problem faced by farmers:

Index insurance is more adapted to the emerging economy contexts than is traditional insurance

Insurance which pays out in function of individual risk is not feasible – administration costs and moral hazard Index Insurance:

Indemnity on the basis of attaining a certain trigger level of reference

Types of indexes: average yield or climate Indexes (rain, temperature, wind, etc.)

Data sources: Satellite, yields, Weather Stations

BENEFITS OF INDEX INSURANCE

Lower costs = lower premiums Coverage of the hardest risks

to manage Decrease of moral hazard

and adverse selection Possibility to adapt the cost

of insurance to purchasing power of producers Automatic claims payout

II. Activitiesa. Crop Insurance

PlaNet Guarantee launched a regional index insurance platform in West Africa

Overall objective: favor access of farmers to insurance in order to reduce the fluctuationin agricultural income and secure the financing mechanism of agriculture

SENEGAL

5 660 enrolled in 2014

CROPS COVERED:

Maize Groundnut, Millet All 3 rainfall deficit indexes

based on weather station data

MALI

15 980 enrolled in 2014

CROPS COVERED:

Maize - rainfall deficit index based on satellite information

Sesame - rainfall deficit index based on satellite information.

BURKINA FASO

9610 enrolled in 2014

CROPS COVERED:

Maize - rainfall deficit index based on satellite information

Cotton - average yield index

COTE D’IVOIRE

Initial feasibility study conducted in 2013

Development of a satellite based index product for maize with AXA CS

a dry run pilot in 2015 with the objective to launch sales in 2016.

Four delivery channels are already involved

Sum Insured in EUR

0

5000

10000

15000

20000

25000

2011 2012 2013 2014

# Insured Mali

# Insured Burkina

# Insured Senegal

# Insured Benin

-

1.000.000

2.000.000

3.000.000

4.000.000

2011 2012 2013 2014

Insured AmountMali

Insured AmountBurkina

Insured AmountSenegal

Insured AmountBenin

Number of farmers 2011 – 2014: 52 228

II. Activitiesa. Crop Insurance – « Assurance Récolte Sahel »

Burkina Faso Senegal Ivory Coast

Source: company

Mali

Products

Credit: partnerships with local insurers (NSIA and Sonavie) and MFIs (MicroCred Mali SoroYiriwaso)

Road accident: Partenrships with Sonavie(insurer) and MFIs

Hospitalization: partnerships with NSIA (insurer) and MicroCred(MFI)

Life- savings: Partnership with mobile operator Orange

Inventory: Partnership with Nallias (insurer) and MicroCred (MFI)

Products

Credit: Allianz (insurer)

Road Accident: partnership with Coris assurance (insurer)

Inventory: Allianz(insurer)

Products

Credit: Allianz (insurer) and Caurie, MicroCred, UIMCEC and Credit Solidaire (MFIs)

Account holder:Allianz (insurer) and Caurie (MFI)

Inventory: Askia(insurer) and UIMCEC (MFI)

Road Accident:AMSA (Insurer) and Tigo (mobile distributor)

Products

Road Safety: Distributed via Total and the postal network

Account sponsorship:Distributed via MicroCred

Credit: Distributed via MIMOYE

II. Activitiesb. Life and Personal Accident – AFRICA

Awareness raising on microinsurance,

trainings, and capacity building to partners

Selection and analysis of distribution

channels

Feasibility StudiesMarket StudiesImpact Studies

Design and implementation of

innovative risk management tools (index insurance,

mobileinsurance)

II. Activitiesc. Insurance Engineering and Services

PRICE VOLATILITY

Product covering risk linked to fluctuation in prices.

Rural producers very exposed to this risk with no solution to help them mitigate.

Concept of margin insurance: involves creating an insurance product around the different in input prices and crop prices.

The differential can be an insurable amount.

CROP INSURANCE THROUGH SAVINGS

Insurance product linked to a saving account.

Advantages: Provides farmers with the necessary funds to buy insurance,

Buffer during the lean season or in case of other idiosyncratic shocks,

Better access to credit – as the insurance lowers the credit risk

DE-CORRELATED CROP INSURANCE PRODUCT

• Innovative parametric approach: crop insurance product with a pure climatic index not correlated with a specific area or crop.

• Will help lower the premium paid by farmers and extend access to microinsurance, regardless crops cultivated.

BUNDLED PRODUCTS

Product which bundles covers to main risks faced by farmers:

Production risks: risks directly linked to the crop harvest

Health and personal accident: risks linked to the farmers themselves.

Market: covering fluctuations of market price and agricultural inputs prices fluctuations

III. Future developmenta. Innovative Products

Critical illnesses’ coverage

• Most common illnesses in a given context (ex: India, Philippines)

• Economically devastating effects of illness to a family• Coverage of hospitalization costs• Definition of a healthcare package in order to enable

the supplier’s network to organize itself in order to provide services

Demand solvency and management costs reduction

• Upon diagnosis of a covered illness, cash availability to cover health costs

• In case of cash availability, at the networks’ levels, possibility to store medicines and improve the networks’ quality

• Monitoring of healthcare supply and not individual beneficiaries

Public Private Partnership

• Definition of healthcare package with Public Authorities’ help

• Fixation of public healthcare public expenditure at a certain level

• Call for tenders of private organizations to implement the program at a local level

Technology

• Equipment of population with smart cards that have their individual data

• Equipment of hospitals with biometric readers• Cost reduction through the use of mobile phones

III. Future Developmenta. Innovative Products – Focus on Universal Health

New model of healthinsurance developed by PlaNet Guarantee on a

regional basis:4 main principles

AGGREGATORS

Insurance products designed for aggregators to increase their profitability.

Banks/MFIs: can lend to more customers as the default risk are covered

Input producers: can stabilize their rvenues as farmers can order the following year

Agri-business: can secure revenus or cost in years of drought

REMITTANCES

• Growing and essential source of funds for African countries and populations

• $400 Bn sent by African migrants to their relatives and families in Africa according (ILO) - mostimportant source of foreign resources, exceeding international aid

• Insufficient elementary social protection for migrants’ families in terms of access to healthcare, insurance, savings, etc.

• Remittances looked upon as informal insurance since they finance current expenses for local populations: Health, Education, Food, etc.

• Inability of formal institutions to provide products meeting these populations’ needs

• Development by PlaNet Guarantee of innovative and inclusive products catered to the needs of the migrants and their families

III. Future developmentb. Innovative Distribution Channels

MOBILE SYSTEMS

Increase of mobile phone use in Africa in recent years especially in rural areas.

Mobile phone use for micro payments and e-banking activities. Unbanked poor populations already at ease with the use of mobile phones

Microinsurance development helped by mobile phone use:

Distribution scheme: distant populations more easily reached thanks to mobile distribution

Possibility to package insurance with the customer’s mobile banking account to support the creation of savings-insurance products

Marketing and communication: Creation of mobile applications as an innovative

training tool for partners, distributors and targeted public

Help to gather information on farmers and design appropriate products

Portfolio Management: mobile information system (MIS) can be used to collect premium and distribute claim payouts

CNASS IS A P.P.P. INSURANCE COMPANY DEDICATED TO RURAL COVERAGE IN SENEGALCNASS has been established in 2008. Premium in 2014: XOF 400,000,000Premium are subsidized up to 50%

PG and CNASS have started a close collaboration in2011 to build up together the Senegalese market inindex crop insurance.

PG supports CNAAS in index and product design, training and awareness raising programs, reinsurance capacities, products distribution and policies management.

CNASS supports PG in the product validation, access to data, premium subsidies, product promotion, legal validation.

PG and CNASS developed 5 index based insurance policies on groundnuts, maize, millet and rice speculations.

IV. Partnership with CNASSa. An original vehicle

Advantages for index design: As a specialist in index insurance PlaNet Guarantee undertakes index design for the CNAAS. The CNAAS facilitates access to data from National Meteo Agency (ANACIM, for rainfall data) and major Agribusinesses (for yield data).

Distribution of index insurance is shared between the CNAAS and PG: CNAAS promotes the product via its local subsidiaries, pays the claims and is in charge of legal validation; PlaNet Guarantee elaborates the policy documents and run the distribution process with 27 delivery channels (cooperative of farmers, MFIs, NGOs, …).

Reaching vulnerable farmers:

CNAAS provides classic agriculturaland livestock insurance to which mostvulnerable smallholder farmer’s can’taccess.

With crop index insurance products,PlaNet Guarantee offers to CNAASthe ability to address crop insurance ata very local level and offer coverage tomost vulnerable populations.

Awareness raising and trainingprograms are crucially needed in orderto educate the market and create thetrust in insurance products.

IV. Partnership with CNASSb. Next steps

Social protection:

PlaNet Guarantee, expert in social protection schemes such as health, retirement, is supporting CNAAS on their mandate to provide social protection to producers.

CIMA:Promote the CNASS model in other CIMA countries

Contacts

François-Xavier AlbouyVice President

PlaNet Guaranteefxalbouy@pleiadeconseils.com

…………………………Mob : +33 (0)6.84.64.15.46

Sébastien WeberDirector Africa

PlaNet Guaranteesweber@planetguarantee.org

…………………………Mob : +221 77 748 85 19