microinsurance the jordanian experience mazen a. nimri fcii flmi deputy gm / life and medical dep....
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![Page 1: Microinsurance The Jordanian Experience Mazen A. Nimri FCII FLMI Deputy GM / Life and Medical Dep. Increasing Resilience through Hospitalization Coverage:](https://reader035.vdocument.in/reader035/viewer/2022062519/5697bfed1a28abf838cb8eb0/html5/thumbnails/1.jpg)
MicroinsuranceThe Jordanian Experience
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Increasing Resilience through Hospitalization Coverage:Case Studies from the Middle East and Africa
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Jordan • Located in the Heart of the Middle
East
• Small country , Big ambitions
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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• Oldest Insurance Company in Jordan 1951
• Composite Insurer (Life and Non-life)
• Highest paid up capital in Jordan JD 30 million (USD 42 million)
• Headquartered in Jordan with Regional Branches in UAE and Kuwait
• 10% Ownership by Munich Re
• Technical team of experts
• Rated by AM Best (FSR B++/ICR bbb+)
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
5.1%5.9%
7.9%8.9%
11.7%
14.3%
17.6%
19.8%
21.6%
23.9%24.5% 25.1%
Growth of Market ShareJIC Life
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MicroinsuranceStrategic Partnership with MFW
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• Strategic Partnership with MFW– Trust
– Transparency
– Commitment
– Utmost good faith
• Risk Transfer Mechanism– JIC covers the loan plus an additional amount in case of
death/disability
– Sustainability of the MFW operations
• Social Participation– Commitment to elevating social standards
• Economic Support– Support the community and economy
Microinsurance
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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• New Market Segment Penetration– Non-conventional target
market
• New Experience– Wealth of knowledge
– New Products
– Different Procedures
• Profits / Pricing?– High Loss ratios
– Price adjustments based on experience
– Benefits enhancements (Spouse Insurance)
Microinsurance
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
• Sponsorships• Very Important for
spreading insurance awareness
• Radio + TV• Ads• Brochures and Flyers
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• Very minimal procedures– No Underwriting – experience driven
– Efficient Premium collections
– Speedy Claims Settlements
– Easy Accounts reconciliation
• Claims Authority Transfer to MFW– Efficiency
– Accuracy
– Popper follow up
– Valued Partnership - Trust
Procedures
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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Product Development
Term Life(Life of
borrower)
Pay Loan Amount
Pay Additional Amount to
Beneficiaries
Term Life(Life of SPOUSE)
Pay a Lump Sum Amount to
Borrower
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Riaya“Care Giver”
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Hospital Cash(borrower)
Pay Lump Sum Amount per night stay at
Hospital
Hospital Cash(Dependants- Spouse and Children)
Pay Lump Sum Amount per night stay at
Hospital
Riaya
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No Underwriting or pre-medical exams
Up to 48 nights
Affordable Premium
Minimal Exclusions
$21 / night spent
@ Hospital
Riaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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Develop the product for the right reason
(serving your client)
Use pilot program to validate the product
Keep a close eye on your indicators Keep it simple
Riaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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Riaya
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Riaya
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2010 2011 2012 2013 2014 20150
20,000
40,000
60,000
80,000
100,000
120,000
5,181
47,356
78,131
94,959104,166
113,031
Number of Active Clients
Riaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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37.15%
11.38%
7.82%
7.81%
7.51%
5.61%
5.23%
4.18%
4.06%
3.97%
3.92% 0.76% 0.60% Delivery / Gyno
Internal
Cardiac
General (Bones, Muscle, ….)
Pulmonary / Allergy
Cancer
Urinary and Genital
Blood
Endocrine / Diabites
Accidents
Dermal
Optical/ Dental
ENT
Riaya / Admission Reasons
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Private8%
Military20%
Public72%
Type of hospitalRiaya
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
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Average Claim frequency
JIC / MFW Ministry of health
7.54% 13.9%
Fraud
less than 2%
Average Hospital stay
JIC / MFW Ministry of health
3.6 2.3
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.
Premium
Monthly $1 -$1.5
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WIN WIN WIN
Insurer MFI
Client
Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.