The document discusses developing, marketing, and managing micro-insurance products and partnerships. It describes different types of micro-insurance providers and intermediaries. It also outlines MicroEnsure's intermediary model, with the intermediary negotiating with insurance companies on behalf of clients. Key factors for establishing partnerships with micro-insurance providers are discussed, including product development, transaction costs, administration, and staff training. The document concludes by describing some innovative micro-insurance products and the marketing of micro-insurance services through education.

1. Developing, Marke0ng, and Managing
Micro‐Insurance Products and Partners
William Martirez
MicroEnsure Philippines
2010 RBAP‐MABS Na.onal Roundtable Conference
Hya= Hotel and Casino, Manila
June 3, 2010

3.
“Microfinance: From Best Practice to Next Practice”
2010 RBAP-MABS NATIONAL ROUNDTABLE CONFERENCE
June 2-3, 2010
Hyatt Hotel and Casino, Malate, Manila
Developing, Marketing, and Managing Micro-Insurance
Products and Partners
Presented by: William H. Martirez
Country Manager, MicroEnsure Philippines

4. Micro insurance Providers
Insurance and insurance-like providers
 Life and Non-life Insurance Companies
 Cooperative Insurance Societies (CIS)
 Insurance/Service Cooperatives
 Mutual Benefit Associations (MBAs)
 Preneed Companies
 Health Maintenance Organizations (HMOs)
Intermediaries
- entities or individuals such as brokers and agents
- facilitate provision of insurance services by licensed insurance providers
 Brokers act on behalf of the clients in the purchase of insurance products
 Agents act on behalf of the insurance companies in the solicitation of insurance
business

5. Managing Micro insurance Products and Partners
The Intermediary Model
Risk Carrier
• Insurance Company
• Reinsurance Company
• Cell Captive
Front Office Back Office
• MFIs, • Systems – Data Capture/
• Rural Banks Reporting
• Aid Agencies • TPA – Claims Servicing
• NGOs • Product Design/Negotiation
• Retail • Training and Education

6. Managing Micro insurance Products and Partners
The Intermediary Model
MICROENSURE AS AN INTERMEDIARY
 Negotiates with insurance companies on behalf of clients to keep premiums to a minimum
 Aim is to achieve sustainability for insurance companies, product distributors, and clients
Effective Product Distribution
 Work in partnership with organizations that are currently serving the poor such as
microfinance organizations, rural banks, as well as humanitarian organizations that are
providing non-financial services
Sophisticated MIS system / Back Office Processing
 ey to minimizing the cost of micro insurance
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 racks details of clients covered, collects premiums and administers claims.
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Extensive market research and insurance expertise
 Products designs that address the real financial risk management needs of
the poor

7. Establishing Partnership to Micro insurance Provider
Important Factors:
1. Products and Product Development
 an insurance provider that
 an understand the needs of the clients.
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 an understand operational realty of the Bank
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 hould be able to design a product that is more suitable for all
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parties
2. Transaction cost
 anagement Information System for transacting insurance business
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 n insurance provider/intermediary that benefits from a wider
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client bases and global reach can fund such an overhead
 nvestment in system reduces transaction cost
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 perating efficiencies
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8. Establishing Partnership to Micro insurance Provider
Important Factors:
3. Administration
 est equip to handle administration relating to claims processing
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4. Additional channel of sale
5. Staff training and Client Education
6. ange of Sustainable Product
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7. Distribution Network/Linkages
8. echnological Enhancement
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9. xpertise and experience in insurance and microfinance
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10. equired no capital outlay on the part of bank
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9. Innovations: Micro insurance promotion and service delivery
Automated Insurance Management System
 A critical component in the timely and cost effective provision of
micro insurance services to Rural Banks and MFIs
 A state-of-the-art technology that specializes in the following:
 Data encoding
 Large volume data processing
 Data Management
 Insurance Claims Processing
 Data Synchronization
 Automated Reports

10. Marketing Micro insurance Services
 Identify target market
 Determine the main messages to convey
 Protection
 Solidarity
 Optimism
 Trust
Three Step marketing Process
Raise awareness Cultivate an
- About insurance understanding of Activate the
- About a specific insurance (costs market
insurer/intermediary and benefits
Source: Protecting the Poor, A Micro insurance Compendium edited by Craig
Churchill

11. Marketing Micro insurance Services
A major hurdle for marketing insurance to the poor is the lack of differentiation
between microinsurance and conventional insurance products
Client education
 esigned to promote understanding of the options for managing risk
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 xplain the fundamental concepts underlying insurance and the terms that define
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it so that the poor can determine what is the most suitable option in their
particular case
Development of comic books in clients' local languages
 rovide an understanding of insurance in an informative and easily
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understandable format.
Materials are the result of in-depth research into client understanding and
attitudes concerning insurance

12. Innovative insurance products:
 Security/insurance for the entire family
 Loan redemption
- fire and calamity assistance
- unemployment insurance
- daily hospital income benefit
 Micro housing insurance
- fire, lightning, typhoon, flood, earthquake, volcanic eruption, landslide)
- evacuation assistance and family personal accident insurance
 Protection to micro entrepreneurs and their tools of trade
- property insurance
- burglary/housebreaking
- personal accident insurance
- money, securities and payroll
- electronic equipment insurance
- fidelity guarantee
 Climate responsive index products
- weather index based crop insurance for drought/dry spell, excess rain, and typhoon wind
speed

13. THANK YO U
MICROENSURE PHILIPPINES
Website: www.microensure.com
Email: william.mar.rez@microensure.com
Phone: (033) 329 0729; (033) 320 0387
(02) 893 9752