Publication database

Across the world, insurers have shifted away from traditional agents and brokers to partner with various alternative distribution channels – ranging from churches, trade unions and mobile network operators to banks, retailers and even civil service organizations - as a way of reaching critical mass at low cost. This brief examines two of these channels – banking and retail correspondents – studying four examples in four countries.

The Inclusive Business Agenda was developed to formulate a strategic research, innovation and action agenda for engaging Swedish organisations with the needs and opportunities of the BoP. The Agenda recommends a comprehensive delivery approach based around 9 workstreams and 6 sectors. In addition to supporting Swedish business both large and small, it is envisioned that this approach will change the prevailing way Sweden does business with the developing world.
 

“Can health microinsurance (HMI) schemes achieve sustainability?” As with many seemingly simple questions, there is no simple answer. The answer to this question is of interest to a variety of parties. Insurance providers seek to understand if there is a viable business case for offering an HMI product. Health-care providers and pharmaceutical companies are interested in whether or not HMI can be a means for broadening coverage. Donors and other funding organizations want to know if HMI is a viable investment as a means to improve health-care access, health outcomes and financial protection for the low-income population. Governments consider how to use HMI schemes as a step towards universal health coverage.

This paper seeks to answer this simple yet crucial question based on the experiences of five schemes in South Asia.

The microinsurance sector has grown to 500 million in 2012 due to the successes of many schemes. However, for every scheme that has succeeded, many more have struggled to reach scale, become viable or provide client value, and some have failed altogether. Research paper #42, titled “Learning from others’ mistakes” identifies the most common challenges that are likely to cause a scheme to fail using the experience of 12 cases.

The microinsurance sector has grown from 78 million policies in 2007 to 500 million in 2012 and the exponential growth is expected to continue, since the potential market is estimated at 3–4 billion policies. However, for every scheme that has succeeded, many more have struggled to reach scale, become viable or provide client value, and some have failed altogether. Many innovations have resulted from efforts to convert these near-misses to successes. Briefing note 36 draws on the experience of 12 such attempts to identify the most common challenges that caused severe problems. The challenges are organized in five clusters: Viability, Client Value, Operations, Partnerships and External.

New products and services sold to low-income people in emerging markets often fl ame out before the eff ort reaches the scale it needs to thrive. Here’s what business leaders need to know to escape that fate.