Enhancing Microinsurance Products and Processes in MFIs

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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

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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

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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%

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IN THE PANEL





Fonkoze Financial Services, Haiti





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I. Improving productsII. Improving business processes

Our Agenda

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Product Evolution Pathways

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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

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•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

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Apply holistic risk management

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• 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:

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• 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:

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Our Agenda

I. Improving productsII. Improving business processes

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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

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• 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:

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• 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

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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:

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Key Messages for MFIs

1) Understand market needs and preferences2) Make mandatory cover valuable3) Apply holistic risk management 4) Improve claims processing5) Monitor performance

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WEBINAR ON





Fonkoze, Haiti





ON Q&A

Enhancing Microinsurance Products and Processes in MFIs

Documents

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