The webinar discussed measuring client value from microinsurance using the PACE framework to assess the product, access, cost, and experience of offerings, identifying opportunities to improve value through case studies from India, Kenya, and the Philippines, and analyzing microinsurance products in relation to informal alternatives and social security programs.

1. WEBINAR ON
Improving Client Value from
Microinsurance: Insights from
India, Kenya and the Philippines
Presenter: Presenter: Presenter:
Michal Matul Eamon Kelly Clémence Tatin-Jaleran
Senior Research Officer Consultant Consultant
Microinsurance Innovation Facility
Guest Presenter: Moderator:
Shailabh Kumar Jasmin Suministrado
Executive Director Knowledge Officer
1 Uplift Mutuals Microinsurance Innovation Facility

2. Interfacing with the
webinar system
Hides/unhides
the control Polls will also be
panel opened during the
webinar – participate
by clicking on your
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Tell us what you
think. Type your
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comments here
even while the Please send chat
presentation is TO STAFF
on-going.
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3. Webinar Attendee
Profile
More than 350 attendees
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4. What is “Client Value”?
Impact Product and
To what extent and process design
how microinsurance How do products
improves risk- meet client needs in
management and relation to
reduces vulnerability? alternatives?
Product use Demand
What is client What factors
satisfaction, loyalty influence the choices
and feedback to of low-income
improve products? households?
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5. Outline of today’s
webinar
1. Measuring client value with PACE framework and tool
2. Identifying value creation opportunities
3. Analyzing offerings in relation to alternatives
4. Concluding thoughts
5. Q&A
...and two discussion forums from today till June 8 at the
Facility’s Knowledge Centre
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6. 1
Assessing client value
with PACE
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7. Building on risk-management
preferences
appropriate
responsive simple accessible
affordable
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8. Client value
assessment tool
PRODUCT
• Coverage & sum assured
• Exclusions & waiting periods
• Eligibility criteria
• Value-added services
EXPERIENCE ACCESS
• Policy administration & tangibility • Choice and enrolment
• Claims procedures • Information & understanding
• Claims processing time • Premium payment method
• Customer care • Proximity
COST
• Premium to client income
• Premium to benefit/cost
• Other fees & costs
• Cost structure and controls
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9. Unpacking one
dimension - Product
Covers appropriate risks from a client perspective
1.1 Coverage, quality of Integrates appropriate riders to main cover
service, exclusions and 0.35 Provides adequate service quality (for health)
waiting periods Offers simple cover without many exclusions
Provides limited waiting period
1.2 Sum insured in Pays out adequate amount in relation to cost of risk
0.35
relation to cost of risk Does not put many sub-limits on specific covers
1.3 Eligibility criteria 0.15 Is inclusive, does not exclude groups of people
Offers non-insurance benefits
1.4 Value-added Offers preventive health services (for health)
0.15
services Offers value-added agriculture services
Triggers positive behaviour changes
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10. Data collection
• Key Sources
– Product: policy documents, marketing information, training info
– Access: interviews mgt & field staff, operational process manual
– Cost: product specs, budgets, tech analysis, KPI’s
– Experience: Direct client interviews, operational manual, KPI’s
• Approach
– Audit type, triangulation
– More client data the better
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11. PACE vs other tools
Impact
Market Study
Study
Client
Satisfaction
MILK Study
Client
Math
PACE
KPIs
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12. 2
Identifying value creation
opportunities
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13. PACE pilot testing
Kenya India Philippines
composite health life
• CIC • ICICI Lombard – • FICCO
• Pioneer MG Swath Bima • CARD MBA
• Britak Yojna • CLIMBS
• Jamii Bora • Yeshasvini • TSKI -
• NHIF • Bharti/AXA - Microensure
PWDS
• VimoSEWA
• Uplift
• RSBY
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14. Uplift in India:
case study
Expanding member benefits
• Hospitalization product changes
• Network of over 300 care providers providing care at negotiated rates
• Access to health initiatives
• To be sustainable with volumes and technology
Claims administration
• Education & empowerment versus timely payments
Product and performance improved over time
• Claim Rejection ratio has decreased over time to 2%
• Claims ratio increased to 70%
• Renewal ratio has increased over time to 70%
• Out of Pocket expenses have reduced over time
• Reduction in claim cost about 3 million rupees in 2010
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15. Microensure in the
Philippines: case study
TSKI Product
Cover Amount
Dagyaw
Raised
Documents Community
Required Pricing
Exclusions => Includes
Increasing borrower and
benefits spouse
Definition of
dependents
extended
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16. Opportunities and
trade-offs
• Many opportunities, small improvements that make a
difference
• Balancing trade offs in a continuous improvement
process
– Cost vs Product, Access and Experience
• ‘Balanced’ client value vs business strategy
• Contextualizing client value
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17. 3
Analyzing offerings
in relation to alternatives
Product Product
A B
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18. Benchmarking to
informal mechanisms
informal
Welfare groups
product
P: mostly life, ad-hoc for health, low cover,
social function
A: widespread and very accessible
C: 300 Kshs per month/family, high
transaction costs
E: delays in ‘payouts’, good experience
experience access
18 cost

19. Benchmarking to social
security
NHIF (launched 2007) informal
Informal sector product mechanisms
NHIF
P: in-patient health; limited exclusions
A: no information, limited awareness
C: 1920 KES pa per family
E: low HCP quality; limited customer care
experience access
cost
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20. Comparing JBT to
benchmarks
JBT (launched 2001)
600,000 lives (MFI) informal
product mechanisms
P: in-patient health full cover, no NHIF
exclusions
JBT
A: mandatory; simple; close PoS &
premium financing
C: 200 Kshs per month/family, cost
controls
E: cashless, good quality HCP, good
customer care
experience access
cost
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21. Client value in Kenya?
product
experience access
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22. Enhancing value in the
Philippines
product
experience access
cost
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23. 4
Conclusions
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24. Conclusions
• PACE – a complementary, simple and timely approach
– to integrate client value in a product development
process
– to provide preliminary inputs for policy discussions
– to complement other client value studies
• Many value creation opportunities, small improvements
that can make a difference
• Product or market maturity matters!
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25. 5
Questions and Answers
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26. Discussion Forums
May 25 – June 8
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