Enhancing Microinsurance Products and Processes in MFIs
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Transcript of Enhancing Microinsurance Products and Processes in MFIs
11
WEBINAR ON
Enhancing Microinsurance Products and Processes in Microfinance Institutions
Presenter:Aparna DalalConsultant
Microinsurance Innovation FacilityPresenter:
Anne HastingsChief Executive Officer
Fonkoze Financial Services, Haiti
Presenter:Fatina Abu Okab
Deputy General ManagerMicrofund for Women, Jordan
Moderator:Jasmin Suministrado
Knowledge OfficerMicroinsurance Innovation Facility
22
Interfacing with the webinar system
Hides/unhides the control
panel Polls will also be
launched during the webinar – participate by clicking on your answers
Tell us what you think. Type your questions/ comments here even while the presentation is on-going.
Please send chat TO STAFF
Lets you raise your hand so we can
acknowledge you
33
Profile of participants
Almost 350 registered participants
By Region By Type of Organisation
By Type of Product
Africa21%
Asia27%
Europe15%
Latin America and the Car-
ibbean16%
North America21%
Agriculture13%
Health28%
Life43%
Livestock9%
Personal accident8%
Financial services (other than in-
surance)15%
Insurance industry23%
Non-government organization
27%
Research organiza-tion10%
Others25%
44
IN THE PANEL
Enhancing Microinsurance Products and Processes in Microfinance Institutions
Presenter:Aparna DalalConsultant
Microinsurance Innovation FacilityPresenter:
Anne HastingsChief Executive Officer
Fonkoze Financial Services, Haiti
Presenter:Fatina Abu Okab
Deputy General ManagerMicrofund for Women, Jordan
Moderator:Jasmin Suministrado
Knowledge OfficerMicroinsurance Innovation Facility
55
I. Improving productsII. Improving business processes
Our Agenda
66
Product Evolution Pathways
77
Make credit life more valuable
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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
• 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
2010: After the earthquake,
diverse partners come together to
form MiCRO
2011: MiCRO and Fonkoze launch
product for 60,000 clients
2008: 4 tropical storms affect thousands of
clients
2009: The concept of
natural disaster insurance is
explored
Jan 12, 2010
99
•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
Which insurance to offer?
Understand market needs and preferences
1010
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
1111
Apply holistic risk management
1212
• 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
Applying holistic risk management:
1313
• Emphasis on training of staff to communicate accurate information
• Follow-up with field and client surveys• Monitoring client health seeking behaviour
Applying holistic risk management:
1414
Our Agenda
I. Improving productsII. Improving business processes
1515
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
1616
• 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
Improving claims processing:
1717
• 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
Improving claims processing:
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• To monitor client value• To assess product profitability • To assess client retention• To establish leverage with insurers
Monitoring performance
1919
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
2020
• 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
Monitoring performance:
2121
Key Messages for MFIs
1) Understand market needs and preferences2) Make mandatory cover valuable3) Apply holistic risk management 4) Improve claims processing5) Monitor performance
2222
WEBINAR ON
Enhancing Microinsurance Products and Processes in Microfinance Institutions
Presenter:Aparna DalalConsultant
Microinsurance Innovation FacilityPresenter:
Anne HastingsChief Executive Officer
Fonkoze, Haiti
Presenter:Fatina Abu Okab
Deputy General ManagerMicrofund for Women, Jordan
Moderator:Jasmin Suministrado
Knowledge OfficerMicroinsurance Innovation Facility
ON Q&A
2323