webinar slides on improving client value from microinsurance
TRANSCRIPT
WEBINAR ON
Improving Client Value from Microinsurance: Insights from
India, Kenya and the Philippines
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Presenter:Michal MatulSenior Research OfficerMicroinsurance Innovation Facility
Presenter:Eamon KellyConsultant
Presenter:Clémence Tatin-JaleranConsultant
Guest Presenter:Shailabh KumarExecutive DirectorUplift Mutuals
Moderator:Jasmin SuministradoKnowledge OfficerMicroinsurance Innovation Facility
Interfacing with the webinar system
Hides/unhidesthe control
panel�Polls will also be
opened during the webinar – participateby clicking on youranswers
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Tell us what youthink. Type yourquestions/ comments hereeven while the presentation ison-going.
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Webinar Attendee Profile
More than 350 attendees
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Product and process design
How do products meet client needs in
relation to
Product and process design
How do products meet client needs in
relation to
Impact
To what extent and how microinsuranceimproves risk-management and
Impact
To what extent and how microinsuranceimproves risk-management and
What is “Client Value”?
meet client needs in relation to alternatives?
meet client needs in relation to alternatives?
Demand
What factors influence the choices of low-income households?
Product use
What is client satisfaction, loyalty and feedback to improve products?
Product use
What is client satisfaction, loyalty and feedback to improve products?
improves risk-management and
reduces vulnerability?
improves risk-management and
reduces vulnerability?
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1. Measuring client value with PACE framework and tool
2. Identifying value creation opportunities
3. Analyzing offerings in relation to alternatives
Outline of today’s webinar
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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1Assessing client value
with PACE
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with PACE
Building on risk-management preferences
appropriate
accessiblesimple
affordable
responsive
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PRODUCT
• Coverage & sum assured
• Exclusions & waiting periods
• Eligibility criteria
• Value-added services
Client value assessment tool
ACCESS
• Choice and enrolment
• Information & understanding
• Premium payment method
• Proximity
COST
• Premium to client income
• Premium to benefit/cost
• Other fees & costs
• Cost structure and controls
EXPERIENCE
• Policy administration & tangibility
• Claims procedures
• Claims processing time
• Customer care
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1.1 Coverage, quality of
service, exclusions and
waiting periods
0.35
Covers appropriate risks from a client perspective
Integrates appropriate riders to main cover
Provides adequate service quality (for health)
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
Unpacking one dimension - Product
1.2 Sum insured in
relation to cost of risk0.35
Pays out adequate amount in 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
1.4 Value-added
services0.15
Offers non-insurance benefits
Offers preventive health services (for health)
Offers value-added agriculture services
Triggers positive behaviour changes
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• 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
Data collection
• Approach
– Audit type, triangulation
– More client data the better
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PACE vs other tools
Market Study
Impact Study
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KPIs
PACE
Client Satisfaction Study
Study
MILK Client Math
2Identifying value creation
opportunities
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opportunities
PACE pilot testing
Kenya
composite
• CIC
• Pioneer
• Britak
• Jamii Bora
India
health
• ICICI Lombard –MG Swath Bima Yojna
• Yeshasvini
Philippines
life
• FICCO
• CARD MBA
• CLIMBS
• TSKI -
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• Jamii Bora
• NHIF
• Yeshasvini
• Bharti/AXA -PWDS
• VimoSEWA
• Uplift
• RSBY
• TSKI -Microensure
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
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• 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
Microensure in the Philippines: case study
TSKI Product
Cover Amount Raised
Dagyaw
CommunityPricing
Includes borrower and
spouse
Definition of dependentsextended
Exclusions => Increasing benefits
Documents Required
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Opportunities and trade-offs
• Many opportunities, small improvements that make a difference
• Balancing trade offs in a continuous improvement • 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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3Analyzing offerings
in relation to alternatives
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in relation to alternativesProduct
AProduct
B
product
informalWelfare groups
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
Benchmarking to informal mechanisms
access
cost
experience
transaction costs
E: delays in ‘payouts’, good experience
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product
informal
mechanisms
NHIF
Benchmarking to social security
NHIF (launched 2007)
Informal sector
P: in-patient health; limited exclusions
A: no information, limited awareness
C: 1920 KES pa per family
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access
cost
experience
E: low HCP quality; limited customer care
product
informal
mechanismsNHIF
JBT
JBT (launched 2001)
600,000 lives (MFI)
P: in-patient health full cover, no
exclusions
A: mandatory; simple; close PoS &
premium financing
C: 200 Kshs per month/family, cost
controls
Comparing JBT to benchmarks
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access
cost
experience
controls
E: cashless, good quality HCP, good
customer care
Client value in Kenya?
product
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access
cost
experience
Enhancing value in the Philippines
product
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access
cost
experience
4Conclusions
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• 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
Conclusions
• Many value creation opportunities, small improvements that can make a difference
• Product or market maturity matters!
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5Questions and Answers
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Discussion ForumsMay 25 – June 8
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