How are mutuals better positioned to provide client value/ education?


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Presentation made by Arman Oza (CEO, VimoSewa, India) at the 6th ICMIF Development Network Seminar (1-2 November 2012; Nairobi, Kenya)

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How are mutuals better positioned to provide client value/ education?

  1. 1. How Are Mutuals BetterPositioned To Provide Client Value / Education? Arman Oza VimoSEWA, India Improving Access to Insurance 6th ICMIF Development Network Seminar November 1-2, 2012 Nairobi, Kenya 1
  2. 2. What Is Client Value? Customers don’t Client Value in buy products – Microinsurancethey buy solutions • Reduced Vulnerability • Welfare 2
  3. 3. Standard Value Propositions - Microinsurqnce • Coverage • Choice • Flexibility • Information • Simplicity • Proximity • Value Added Services Product Access Cost Experience • Affordable • Quality • Structure • Processes • Benefit • FacilitationCourtesy: PACE Framework, Microinsurance Innovation Facility 3
  4. 4. Demeanors In Insurance Insurance isalways sold – The sacrifice is real & immediate never bought but benefits are Nobody wants insurance until distant & contingent a loss is round the cornerLaughter is thebest medicine –when you cannot Insurance is a afford health Contributions by business of insurance many – benefits to few. claims 4
  5. 5. Intrinsic Value Perceived Value Will he pay my claim? Benefits Features Cost Flexible Communication -Marketing -Education 5
  6. 6. How Can Mutuals Provide Better Value? Commercial Insurers MutualsInterest – of Owners Conflicting Common& CustomersHomogeneity of Low HighCustomersObjective Profit Maximization Value MaximizationCost Structures Heavy LightSolidarity Low / Absent HighAccessibility for Low HighCustomers 6
  7. 7. Enhancing Client Value Mutuals Commercial Insurers Concept Promotion Product PromotionMarketing Building the right Risk Perception Highlighting the unique features & of the productEducation Market-Making Match-Making Product Product Customisation Product Standardisation Design Simple & Flexible Complex and RigidProcesses & Transparent and Reasonable Jargonized and tedious Facilitation Equal focus on Social Focused mainly on Financial Performance Performance 7
  8. 8. Ground Realities TASK CHALLENGEBuilding & Maintaining Solidarity Balancing short and long term interests of membersEnsuring community participation and Capacity BuildingoversightOvercoming buyer – seller relationship Inculcating a sense of belongingSimplifying products and processes Managing operational risksPerforming the Educator’s role Managing and recovering costsScaling-up Maintaining social ethosFocusing on social performance Aligning social performance with organizational growth. 8
  9. 9. SEWA’s Experience Mobilsiing, SEWA Advocacy, Right Union Based Activities. Commercial activities and Cooperatives Trusts capacity building Milk, Agriculture, Handicrafts, Producers’ Consumer Trade Coops Health, Banking, Coops Coops Insurance•Mobilising women and managing business are distinct skill sets.•Scaling-up beyond a point is challenging.•Creating synergy requires lot of effort. 9
  10. 10. Summing-Up• Discovering the right models to scale-up sustainably to demonstrate larger impact.• Re-aligning their models in view of governments entering the low income space.• Work towards evolving enabling regulation for mutuals.• Also focus on core insurance principles and sustainability while enhancing client value.• Developing benchmarks for social business.• Better coordination and integration among mutuals for knowledge sharing and synergy. 10
  11. 11. THANK YOUVisit us at 11