Microfinance institutions (MFIs) are now increasingly including microinsurance in their portfolio of financial services to low-income communities. Innovative approaches are emerging, offering insights on how MFIs can provide valuable risk management services that have a potential impact on both clients and the MFIs alike. This webinar looked into the key successes and challenges of microfinance institutions that provide insurance to low-income persons and microenterprises. How can an MFI make its microinsurance program more successful and beneficial both for their clients and for itself? What can be learned from innovative MFIs that can make microinsurance operations more sustainable and impactful? Learn more from this webinar organized by the Microinsurance Innovation Facility.

1. WEBINAR ON
Enhancing Microinsurance Products and
Processes in Microfinance Institutions
Presenter:
Aparna Dalal
Consultant
Microinsurance Innovation Facility
Presenter: Presenter:
Anne Hastings Fatina Abu Okab
Chief Executive Officer Deputy General Manager
Fonkoze Financial Services, Haiti Microfund for Women, Jordan
Moderator:
Jasmin Suministrado
Knowledge Officer
Microinsurance Innovation Facility
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2. Interfacing with the
webinar system
Hides/unhides
the control panel Polls will also be
launched during the
webinar – participate by
Lets you raise your clicking on your answers
hand so we can
acknowledge you
Tell us what you
think. Type your
questions/
comments here
even while the Please send chat
presentation is on- TO STAFF
going.
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3. Profile of participants
By Region By Type of Organisation
North America Africa
Almost 350 Others Financial
25% services (other
21% 21% registered than
insurance)
participants 15%
Research
organization
10%
Latin America
and the
Caribbean
16%
Asia Insurance
27% Non- industry
government 23%
Europe By Type of Product organization
15% Livestock 27%
9%
Personal
accident
Life
7%
43%
Agriculture
13%
Health
3 28%

4. IN THE PANEL
Enhancing Microinsurance Products and
Processes in Microfinance Institutions
Presenter:
Aparna Dalal
Consultant
Microinsurance Innovation Facility
Presenter: Presenter:
Anne Hastings Fatina Abu Okab
Chief Executive Officer Deputy General Manager
Fonkoze Financial Services, Haiti Microfund for Women, Jordan
Moderator:
Jasmin Suministrado
Knowledge Officer
Microinsurance Innovation Facility
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5. Our Agenda
I. Improving products
II. Improving business processes
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6. Product Evolution
Pathways
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7. Make credit life
more valuable
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8. Which insurance to offer?
• Credit/Life product through Haitian insurance company AIC began in
2007
• Catastrophe product concept began in 2009 with full implementation
by 2011
Jan 12, 2010
2009: The
2008: 4 tropical 2010: After the
2011: MiCRO and
concept of earthquake, diverse
storms affect Fonkoze launch
natural disaster partners come
product for 60,000
thousands of together to form
insurance is clients
clients MiCRO
explored
• 2010 Earthquake used as a chance to test the proposed catastrophe
insurance payout structure
• Changes to product are not easy! Important to get it right the first
time.
Understand market needs and preferences
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9. Which insurance to offer?
•Changes made by MFW to improve mandatory hospital cash
 Increasing Coverage Amount / Night (from $14 to $21)
 Increasing Coverage Ceiling (45 nights/ Loan term to 48 nights/ year)
 Accelerating the process (In-house Approval for six nights and below claims)
•Mandatory - Plus
 Risk Distribution
 Minimal Premium (Large Pool)
 Building Insurance culture
•Importance of Pilot Testing
 Identifying the Risks
 Challenges & Solutions
 Clients’ behavior
Understand market needs and preferences
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10. How to build insurance
capacity?
 Continual training of nearly 2,000 center chiefs is vital to
ensure buy-in and reinforce how the product works
 Training of damage facilitation staff also important
 Presence of Fellow, new learning and experience exchange
 Sales staff training for customer awareness of product
features and benefits
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11. Apply holistic risk
management
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12. Applying holistic risk
management:
• Improve illustrated, easy-to-read client education
modules
• Explore tangible options for merchandise
protection
• SMS-based early warning system
• Create incentives and disincentives to encourage
less risky behavior and prevent fraud
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13. Applying holistic risk
management:
• Emphasis on training of staff to communicate
accurate information
• Follow-up with field and client surveys
• Monitoring client health seeking behaviour
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14. Our Agenda
I. Improving products
II. Improving business processes
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15. Improve claims
processing
• Claims processing improvement options:
 claims advances
 pre-authorization
 in-house processing
 guarantee fund
 service standard agreements
 document requirements
• Balance flexibility and scrutiny
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16. Improving claims processing:
• In-house approval for claims up to six nights
• Hiring a pharmacist for claim processing and
analysis
• Decreasing Claim’s Duration
• Approval on Claims more than 6 nights within 24
hours Max
• Fraudulent Claims Control
 Auditing Medical Reports
 Relationship with Hospitals
 Strict actions toward Fraudulent Clients
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17. Improving claims processing:
• Claims process improvements
 Controlling fraud through central level facilitators
 Improving forms to simplify data collection
 Utilizing tablet computers and other technology to speed-
up claims handling
• Challenges Remain
 How to prevent moral hazard amongst clients
 How to control costs
 How to reach clients quickly in rural, isolated areas
 Teaching clients to be proactive in protecting assets
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18. Monitoring performance
• To monitor client value
• To assess product profitability
• To assess client retention
• To establish leverage with insurers
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19. Monitoring performance:
• Use of internal “Social Impact Department” as well as
outside evaluation resources to explore:
 Client and Staff Satisfaction
 Financial impact of product on clients and institution
 Non-financial impact of product (dropout rates, etc)
• Established toll-free hotline to receive client feedback and
resolve issues
• How has monitoring improved the product?
 Refined the damage assessment process to make it more
participatory and transparent
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20. Monitoring performance:
• MFW’s experience with monitoring:
 Number of participants
 Claims (Numbers, Amounts, Ratios, Frequency, Duration)
 R & E Ratios (Program Sustainability)
• One major challenge plus solution
 Challenge: Managing potential pushback of the mandatory
product
 Solution: Issues are typically resolved after a loan officer explains
product and also when other group members encourage a client
to join
• Concrete example of a positive effect of monitoring
 Pricing of the Product
 Increasing the benefits
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21. Key Messages for MFIs
1) Understand market needs and preferences
2) Make mandatory cover valuable
3) Apply holistic risk management
4) Improve claims processing
5) Monitor performance
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22. WEBINAR ON
Enhancing Microinsurance Products and
Processes in Microfinance Institutions
Presenter:
Aparna Dalal
Consultant
Microinsurance Innovation Facility
Presenter: Presenter:
Anne Hastings Fatina Abu Okab
Chief Executive Officer Deputy General Manager
Fonkoze, Haiti Microfund for Women, Jordan
Moderator:
Jasmin Suministrado
Knowledge Officer
Microinsurance Innovation Facility
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