Creating an enabling environment for microinsurance in … · Creating an enabling environment for...

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Creating an enabling environment for microinsurance in Zambia Namakau M. Ntini Learning sessions: Microinsurance Business Models for Africa Mombasa, Kenya April 6-7, 2016

Transcript of Creating an enabling environment for microinsurance in … · Creating an enabling environment for...

Creating an enabling environment for microinsurance in Zambia

Namakau M. NtiniLearning sessions: Microinsurance Business Models for Africa

Mombasa, Kenya April 6-7, 2016

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Presentation Outline

4. Monitoring Performance

2. Development of MI Legislation – Process & status 3. Critical Issues – Are we nearly there?

1. Market Overview

5. Questions and discussion

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1. Market Overview

3 12 22 189

Suppliers

Microinsurance products are more skewed towards long

term insurance

Conventional financial

performance skewed

General insurance

No composite entities

Advent of consumer centric products

Products &Financial Performance

Tied and inappropriate for microinsurance

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2009 < 100 lives

2013 1 Million lives

2014 3 Million + lives

95% credit life 5% life/funeral

Credit life 64%

Life/ funeral 35%

Ag insurance 1%

Credit life 20.4%

Life/ funeral 79.4%

Ag insurance 0.2%

14,178,729

83,450,734

458,273

Life + Funeral Credit life Weather index

GWP - Microinsurance Products 2014 (ZMW)

55% 41%

191%

Life + Funeral Credit life Weather index

Microinsurance Performance 2014

Average Gross Claims Ratio

Mainly MFIs

MFIs, banks, MNOs, workers unions, microenterprise associations, community agents

MFIs, banks, MNOs, workers unions, microenterprise associations, community agents, agribusinesses, farmer Groups

Distribution

Microinsurance Landscape Surveys 2009-2014

Coverage Financial performance 1. Market Overview

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79.4%

20.4%

0.2%

Life + Funeral,

3,397,623

Credit life, 872,713

Weather index, 9,110

Microinsurance Performance 2014 Policies/Lives covered

Life + Funeral Credit life Weather index

42.6%

14.5%

11.2%

5.2%

2.4%

Have not heard about insurance

Cannot afford it

Does not know how it works

Does not know the benefits of

Does not know how to get it/

Key barriers to access

Finscope 2015

Source: Microinsurance Landscape survey 2014

1. Market Overview

Active insurers, 7,

21%

Inactive insurers, 27, 79%

Microinsurance Engagement

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1. Market Overview

1997 2005 2010 2012

Insurance Act enacted

Insurance Act amended

Circular issued to encourage

microinsurance development

2016

Drafting of microinsurance

regulations commenced

Finalisation of microinsurance

regulations

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2. Development of MI Legislation – Process & status

Reforms within the financial sector

Multi- stakeholder collaboration

Regional co-ordination

Balancebetweenregula4on&innova4on

Consumercapability

FinancialConsumer

Protec4on&DisputeResolu4on

Lackofdata7

3. Critical Issues – Are we nearly there?

Are Performance Indicators relevant in Microinsurance?

q They are used to monitor results by industry players and regulators

q Snap shots of performance

q Highlight actionable areas

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4. Monitoring Performance

KPI’s are a quick and easy way to see trends and spot immediate issues relating to:

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4. Monitoring Performance

Productvalue

Customerawareness

Clientsa4sfac4on

Financialprudence

ServiceQuality

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Namakau M. [email protected]