NRT 2011: Responsible and Effective Sales, Marketing and Servicing of Microinsurance by Rural Banks
Session 7: Responsible andEffective Sales, Marketing andServicing of Microinsurance byRural Banks 2011 RBAP-MABS National Roundtable 24 May 2011 Hyatt Hotel, Manila Michael J. McCord MicroInsurance Centre
Rural banks that do not yet offer microinsuranceStep 1 – Institutional Assessment• Everyone does not have to do microinsurance• Understand if you can manage the requirements ▫ Institutional mission ▫ Financial stability ▫ Human resources, marketing, IT, documentation• Identify a product “champion” and product team• Must have endorsement of MD / CEO and board• Make sure you are ready – honestly!
Rural banks that do not yet offer microinsuranceStep 2 – Follow a product development process• The process will help you to improve potential for success and save money and reputation• Do not skip steps• Pilot test!
Rural banks that do not yet offer microinsuranceStep 3 – Search for the right partner• Research microinsurance service of insurers ▫ Flexibility ▫ Microinsurance focus ▫ Proven record of good service ▫ Commitment to fast claims payment ▫ Commitment to SUAVE products• Tender process
Rural banks that currently offer microinsurance#1 – Represent your clients• Act as “broker” ▫ Conflict of interest?• Make sure your products are S.U.A.V.E.• Make sure you have a clear understanding of microinsurance value• Success will only be achieved when you have a win-win-win situation• Use microinsurance as a benefit to clients
Rural banks that currently offer microinsurance#2 – Manage relationship with insurer• Memorandum of Association• Regular meetings• Clear roles• Efficiency ▫ Operations ▫ Claims
Rural banks that currently offer microinsurance#3 – Monitor performance• Best way to ensure a quality product• Appropriate key performance indicators ▫ Claims ratio ▫ Claims duration ▫ Market penetration ▫ Rejection rates ▫ Renewal rates• Track your own costs of operations• Track your marketing costs
The MicroInsurance Centre 8 “Developing partnerships to insure the world’s poor”www.MicroInsuranceCentre.org mjmccord@MicroInsuranceCentre.org