Microinsurance Product Pool - Allianz...1) To learn more about the Allianz microinsurance values...

Microinsurance Product Pool

Allianz SE Emerging Consumers April 2016

Overview and assessment of Allianz microinsurance products

public

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

2

Introduction

This microinsurance product pool lists the microinsurance products of Allianz Group that currently provide insurance cover to low-income people in emerging markets and developing countries. Products launched since June 2013 which still have less than 1,000 inforce (active) policies are not included.

Two non-microinsurance products are included at the end to show why some Allianz products are not considered microinsurance although they also serve low-income people.

This initiative supports the “Transparency” value of our Allianz microinsurance values:

1) To learn more about the Allianz microinsurance values please see our latest microinsurance business updates. 2) The product assessment shows how well the products is intended to serve low-income families in compliance with our

microinsurance values (“as planned”). It does not verify how products and distribution look on the ground (“as is”). Example: Allianz may have produced product brochures although for various logistical reasons they do not reach the insured. The assessment is also no indicator for actual business success.

Passion Quality Fairness Transparency

e.g. product pool

A. Product specifications Gives a high-level explanation how the product looks like (distribution, benefits, pricing)

B. Product assessment2 Matches the product against the Allianz microinsurance definition and assessment tool. This includes 1. Knock-out criteria: “Can we call this product micro?”, and 2. Qualitative criteria: “How well does the product fulfill our

microinsurance values?”2

C. Product brochures where available

Allianz Microinsurance Values1

Information on each product is presented in three sections:

We will update this product pool every April and October as new microinsurance products are launched and existing products are modified or taken off market. We try to list products from the moment that over 1,000 inforce (active) policies are first reached until the last policy matures. However, there is no duty to update (see disclaimer).

Martin Hintz +49 89 3800-18401 Microinsurance E-mail: Allianz SE [email protected]

Is this really the latest? See our microinsurance website for the

most recent reports and publications

Contact

https://www.allianz.com/microinsurance�

https://allianz.com/oneweb/cms/www.allianz.com/v_1364458619000/media/responsibility/documents/Allianz_Microinsurance_Definition_and_Assessment_Tool_April2013.pdf�

mailto:[email protected]�

https://www.allianz.com/microinsurance�

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

3

Knock-out criteria: "Can we call it micro?"

Qualitative criteria: "How well aligned with our microinsurance values?"

Quality rank avg. c1-c7

A B C D 1 2 3 4 5 6 7

Details

on page

Insurance principles

Dev. C

ountry or EM

Low-incom

e focus

No subsidies >50%

Strong R

isk Mgm

t

Other benefits

Custom

ers involved

Voluntary

Custom

er education

Product sim

plicity

Low transaction costs

#

Country

Company

Product Name

1 Colombia Allianz Colombia

Family Term Life +

+ - ++

++

+ + + + 1.4 5


Home Business +

+ - ++

++

+ + + + 1.4 7


Life & Maternity +

+ - ++

++

+ + + + 1.4 9

4 Ivory Coast

Allianz Africa

Mobile Funeral +

+ - - + +

+ +

+ +

+ + 1.4 11

5 Mada-gascar

Allianz Africa

Mobile Term Life +

+ - - ++

+ +

++

+ + 1.4 15

6 India Bajaj Allianz Life

Life + Savings + - - +

+ ++

++

++ 1.3 18

7 Indonesia Allianz Life

Credit Life Plus +

+ - + + + ++

++ 1.3 20

8 Indonesia Allianz Life Term Life +

+ - - + +

+ +

++ + 1.3 24

9 Ivory Coast

Allianz Africa

Funeral Insurance +

+ - - ++ + +

+ ++ 1.3 27


Life + Savings +

+ - - ++ + + +

+ 1.1 31

11 India Bajaj Allianz General Crop Index +

+ - + - ++ + + 1.0 33


Group Term Life + - - + + +

+ ++ 1.0 36

13 Malaysia Allianz General

Motorcycle + PA2 +

+ - - ++

++ - + 1.0 38

14 West Africa & Egypt

Allianz Africa Credit Life + - + + - - +

+ + + 1.0 42

15 West Africa Allianz Africa Crop Index +

+ - ++ - + + + 1.0 44

Overview1

1) See our website for a full explanation of our assessment methodology 2) PA: Personal Accident Note: A high ranking is only an indicator for compliance with Allianz’

microinsurance values, not an indicator for actual business success

updated

updated

updated

new

new


© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

4




A B C D 1 2 3 4 5 6 7

Details

on page

Insurance principles

Dev. C

ountry or EM

Low-incom

e focus

No subsidies >50%

Strong R

isk Mgm

t

Other benefits

Custom

ers involved

Voluntary

Custom

er education

Product sim

plicity

Low transaction costs

#

Country

Company

Product Name

16 Burkina Allianz Africa Savings-Life + - - + - +

+ + + 0.9 48

17 India Bajaj Allianz General

Cattle & Livestock +

+ - - + ++ - + 0.9 50

18 India Bajaj Allianz General

Personal Accident + - - +

+ - - + 0.6 52

Overview1

#

Country

Company

Product Name




Details on

page A B C D 1 2 3 4 5 6 7

1 Ivory Coast

Allianz Africa

Mobile Savings not

micro 54

2 Malaysia Allianz Life + General Life & PA2 not

micro 58

Non-qualifying products due to failing on criteria A - D

Non-qualification means that a product has failed to meet any of the four basic criteria A – D of the Allianz Group microinsurance definition, although they may still address needs of low-income people. Sample cases are shown here to better illustrate conditions under which this may happen.

#

Country

Company

Product Name




Reason for phase out A B C D 1 2 3 4 5 6 7

1 Indonesia Allianz General

Scratch- card PA2 - + - +

+ ++

++ + 1.1

Replaced by “Si Peci”

product

Phased out products since last update April 2015

1) See our website for a full explanation of our assessment methodology 2) PA: Personal Accident Note: A high ranking is only an indicator for compliance with Allianz’

microinsurance values, not an indicator for actual business success

updated


© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

5

1. Colombia: Family Term Life

Product name (generic or marketing name)

“Seguro de Vida” (Life Insurance)

Product type (e.g. term life, endowment, motorcycle)

Term Life

Company name Allianz Colombia

Country Colombia

Distribution partner type (e.g. MFIs, banks, coops, retailers)

Microfinance Institution (MFI)

Launch date (and stop date if any)

1 July 2012

1-sentence product description Voluntary Group Term Life Insurance that provides life insurance cover to the group’s members (and optional their partners) plus additional funeral cover to the insured group members and up to 4 freely chosen close relatives

Group or individual product Group

Voluntary opt-in, opt-out or compulsory

Voluntary opt-in

Covered risks & benefits / sum insured

Death due to any cause of insured (i.e. group member and optional – against additional premium – the partner): COP 3mn to COP 15mn depending on chosen premium plan (~ USD 1,000 to 5,000)

Funeral benefit to member and 4 freely chosen close relatives (which can include the partner): up to maximum COP 3mn (~ USD 1,000) for all premium plans. Benefit expires after 2 death cases

Maximum sum assured per person: COP 30mn (~ USD 10,000), e.g. if a client has multiple policies of this product

Premium range (min, max)

Minimum COP 9,960 per month (~ USD 3.50) for minimum benefits for single insured and 4 relatives

Maximum COP 42,068 per month (~ USD 15.00) for maximum benefits for insured, partner and 4 relatives

Avg. premium / year (annualize if necessary)

COP 122,880 (USD ~ 45.00)

Other comments

The product is only available to active clients of the MFI, i.e. those who have an active credit and/or savings account with that MFI

90 days waiting period for minor pre-existing conditions 180 days waiting period for major pre-existing conditions (e.g. cancer)

and suicide

A. Product Specifications

>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

6

1. Colombia: Family Term Life

>> back to Overview

C. Product Brochure: not available

B. Product Assessment1

Product: Seguro de Vida Ranking2 Rationale / Comments

A Insurance principles applied Fully applied

B Developing country or emerging market Colombia is an emerging market according to S&P

and a developing country according to World Bank

C Great majority of insured people or assets from low-income segment

The MFI distributor targets low-income families, i.e. strata 1 - 3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low maximum loan amount of their micro-credit segment of COP 2.3mn (~ USD 800)

D No government subsidies of more than 50% No government subsidies

1 Significant contribution to risk management of end customers ++

The product protects several family members against death which is a significant risk. Coverage includes pre-existing conditions which allows for the inclusion of more vulnerable people (subject to waiting periods).

2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.)

- None

3 End-customers involved in product development ++

Workshops were done by the MFI in selected branches to garner input for the product design, especially as previous life insurance offers had not found wide acceptance among customers

4 Voluntary opt-in (++), voluntary opt-out (+) or compulsory (-)

++ Fully voluntary for existing customers of the MFI

5 Customer education and feedback mechanisms in place ++

Simple brochures are provided, and – because many customers are not fully literate - the bank’s staff also gives verbal explanations. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk

6 Simple product specifications (e.g. pre-underwritten, few exclusions)

+ Simple product without health declaration. Several plan options exist, so the distinction of which family member has what level of coverage takes time to understand. Certain waiting periods and exclusions exist.

7 Strong measures to ensure low transaction costs +

Monthly batch processing from MFI to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes

Overall ranking3 1.4

1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-D: or ; for criteria 1 – 7: “-” (0), “+” (1) or “++” (2) 3) Average of criteria 1 – 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz’ microinsurance values, not an indicator for actual business success


© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

7

2. Colombia: Home Business


“Seguro de Hogar” (Home insurance)


Property


Country Colombia


Microfinance Institutions (MFIs)


1 July 2012

1-sentence product description Voluntary Group Property insurance that covers private homes, including those used for home-based business, against damage to the building and its content arising from various risks such as fire, lightening, flooding, windstorm, civil commotion etc.



Voluntary opt-in


Costs of repair or replacement of home and home content damages due to below risks are covered as follows and up to the given maximum values. Maximum values may differ per MFI and the highest value applied to any MFI is listed below:

A: Fire, lightening, explosion, windstorm (incl. related rains and floods), falling trees, falling aircraft and vehicle crashes: up to COP 20mn (~ USD 7,000)

B: Water damage, flooding, avalanche and landslides: up to COP 15mn (~ USD 5,000)

C: Violent strikes, civil commotion and malicious acts by 3rd parties: up to COP 15mn (~ USD 5,000)

D: Actions to contain damage, actions of public authorities and debris removal: up to COP 2mn (~ USD 700)

E: Earthquake, volcanic eruption and tsunami (only applicable at some MFI): up to COP 15mn (~ USD 5,000)

Max. sum insured from all risks per home over the entire life of the policy is COP 20mn (~ USD 7,000), i.e. should the accumulated damages exceed that amount, the excess is not covered


Minimum: COP 4,995 (~ USD 1.70) per month Maximum: COP 6,700 (~ USD 2.30) per month


COP 78,000 (~ USD 25)

Other comments

The product is only available to active clients of the MFI, i.e. those who have an active credit and/or savings account with that MFI

Earthquake risk is not covered, as this is not considered important by customers and would significantly increase the premium

A deductible of 10% applies to risks B and C above; risks A and D do not have a deductible


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

8

2. Colombia: Home Business

Product: Seguro de Hogar Ranking2 Rationale / Comments


B Developing country or emerging market Colombia is an emerging market according to S&P



The MFI distributor targets low-income families, i.e. strata 1 - 3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low maximum loan amount of their micro-credit segment of COP 2.3mn (~ USD 800)



Several serious risks to home property are covered. The sums insured are high enough to allow micro-entrepreneurs to quickly get back on their feet and resume their home-run businesses after a claim.


- None


The product was developed based on strong customer demand to cater to the insurance needs of small entrepreneurs that borrow from the MFI and often run their business out of their private homes


++ Fully voluntary for existing customers of the MFI


Simple brochures are provided, and – because many customers are not fully literate - the bank’s staff also gives verbal explanations. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk


+ For a property product, design and policy wording are kept relatively simple, with only 2 available coverage plans. Still, time is needed to explain the exact covered risks, the deductibles and the claim procedure.


Monthly batch processing from MFI to insurer. No on-site claim inspection needed. A claim help desk and a bank agent help desk achieve streamlining of the service processes


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

9

3. Colombia: Life & Maternity


“Voy Seguro” (I go safely)


Term Life


Country Colombia


Microfinance Institution (MFI)


1 November 2012

1-sentence product description Voluntary Group Term Life Insurance that also provides maternity benefits to the insured or partner during pregnancy and after birth



Voluntary opt-in


Death of the insured due to any cause: COP 4mn basic life benefit + COP 600k for food basket + COP 500k funeral assistance, i.e. total death benefits of COP 5.1mn (~ USD 1,800)

Maternity benefits for insured or partner: COP 400k at 6 months into pregnancy and COP 200k after birth, i.e. total maternity benefits of COP 600,000 (~ USD 210)

Maximum sum assured per person: COP 32mn (~ USD 11,000), e.g. if a client holds multiple policies of this product


COP 4,990 per month (~ USD 1.70) One standard plan only; no other premium and benefit options


COP 59,880 (~ USD 20)

Other comments

The product is only available to active micro-loan clients of the MFI (the MFI offers no savings services)

The food basket and funeral assistance benefits are usually paid out as a cash lump sum together with the basic life insurance benefit

90 days waiting period for pregnancy and minor pre-existing conditions 180 days waiting period for major pre-existing conditions (e.g. cancer)

and suicide


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

10

3. Colombia: Life & Maternity

Product: Voy Seguro Ranking2 Rationale / Comments


B Developing country or emerging market Colombia is an emerging market according to S&P and a

developing country according to World Bank


The MFI distributor targets low-income families, i.e. strata 1 - 3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low average loan amount of their borrowers of COP 2.3mn (~ USD 800)



Death is a significant risk and coverage includes pre-existing conditions (subject to waiting periods). Moreover, maternity expenses are a very frequent risk even if the related policy benefits are not high.


- None


Focus Group Discussions with the MFI customers have strongly influenced the product, for example that the larger part of the maternity benefits is already paid out at 6 months pregnancy. This allows the expectant mothers to prepare in time for the delivery and post-natal phase.


++ Fully voluntary option that can be added to the MFIs credit offering


Customers receive verbal explanations from the bank’s staff. Brochures are not used as customers are often semi-literate. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk


+ Simple, easy to understand product design with only one available standard plan. No health declaration required. However, certain waiting periods and exclusions exist.


Monthly batch processing from MFI to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

11

4. Ivory Coast: Mobile Funeral


“Allianz Obsèques”


Term life insurance

Company name Allianz Côte d’Ivoire Assurance Vie

Country Ivory Coast


Telecommunication company


1 June 2012

1-sentence product description

Voluntary group life insurance for “mobile money” account holders of the partnering telecommunication company; coverage includes protection against death due to all causes and total permanent disability



Voluntary opt-in


Natural death or total permanent disability: XOF 500,000 (~ USD 840)

Accidental death: XOF 1,000,000 (~ USD 1,700) Part of the death benefit (up to 100%) can be chosen as direct

payment to a designated funeral home to cover funeral expenses (i.e. “in kind” benefit)


XOF 8,000 (~ USD 15) for yearly or XOF 700 (~ USD 1.20) for monthly payment; premiums are automatically deducted from “mobile money” account


XOF 8,400 (~ USD 15), based on the fact that most insured choose the monthly premium payment option

Other comments

Age limits are 21 to 65, with disability coverage expiring at age 61 Enrollment still happens by physical form filling at the telco’s outlets, but

premium payment is only possible through mobile money Multiple enrollments are not allowed


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

12


Product: Allianz Obsèques Ranking2 Rationale / Comments


B Developing country or emerging market Ivory Coast, after 10 years of civil war and a political crisis

in 2011, is more still very much a developing country


The vast majority of the population of Ivory Coast is low income and the low sums insured also only appeal to low-income segments



Death is a significant risk for low-income families in Ivory Coast. Optional direct payment of a part of the benefit to funeral homes helps to insure “proper” payout usage. The “payout to annual premium ratio” of 60 is decent


- None

3 End-customers involved in product development - No


++ Fully voluntary. Moreover, the monthly premium payment option allows for cash-flow friendly payment


Customers receive a physical insurance certificate, additional information via SMS and have access to a 8/5 hotline of the insurer


++ Policy terms and exclusions are much simplified. No health underwriting and waiting period

7 Strong measures to ensure low transaction costs ++ Premium collection through auto-debit from “mobile money”

accounts is very efficient


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

13


C. Product Brochure

>> back to Overview

Front

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

14


C. Product Brochure

>> back to Overview

Back

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

15

5. Madagascar: Mobile Term Life (Updated)


Airtel Antoka


Enhanced Mobile Term Life

Company name Allianz Africa

Country Burkina Faso and Madagascar


Airtel telecommunication company, with MicroEnsure as service provider


June 2014

1-sentence product description In its current first phase, the product provides free cover for (a) death due to all causes, (b) total permanent disability due to accident , and (c) a lump sum hospital cash benefit for inpatient stays of minimum 3 days. Sums insured are linked to airtime consumption (“the more you call the more cover you get”). Premiums are paid by Airtel as a loyalty scheme

In a second phase (still to be launched) , sums insured will double, a flat standard monthly fee to customers will be added, and customers will be able to enroll another family member (against extra premium).



Voluntary opt-in


Sums insured depend on the previous month’s airtime consumption Death due to all causes and Total Permanent Disability due to accident:

Phase 1: MGA 100,000 – 1mn (~ USD 30 – 310) Phase 2: MGA 100,000 – 2mn (~ USD 30 – 630)

Hospital cash lump sum, paid for every hospital stay of min. 3 days: Phase 1: MGA 15,000 – 50,000 (~ USD 4.70 – 15) Phase 2: MGA 15,000 – 100,000 (~ USD 4.70 - 30)


Phase 1: free, starting from min. previous month’s airtime consumption of MGA 3,500 (~ USD 0.95) and max. sum insured reached if previous month’s airtime consumption is MGA 20,000 (~ USD 6.50) or more

Phase 2: MGA 1,500 (~ USD 0.45) for 1 person or MGA 3,000 (~ USD 0.95) for 2 persons per month with no min. airtime and max. sum insured reached if previous month’s airtime is min. MGA 20,000 (~ USD 6.50)


Phase 1: free Phase 2: MGA 21,600 (~ USD 7.00), i.e. average MGA 1,800 (~ USD

0.55) per month

Other comments

In phase 2, if customers don’t choose at least the MGA 1,500 (~ USD 0.45) monthly plan (i.e. 1 person), all coverage will stop

Even in phase 2, benefits will continue to increase with the previous month’s airtime consumption regardless of the flat membership fee

In cooperation with MicroEnsure


>> back to Overview

http://www.microensure.org/�

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

16


>> back to Overview


Product: Airtel Antoka Ranking2 Rationale / Comments


B Developing country or emerging market Madagascar is a developing country according to World

Bank


With its small sums insured and eligibility limited to pre-paid airtime customers only (instead of the generally better-off post-paid customers), it can be safely assumed that the great majority of insured is low-income

D No government subsidies of more than 50% No subsidies


Of the three covered risks (death, accidental disability and hospitalization) at least death and hospitalization can be considered a high risk to most, especially for low income people to whom the sums insured are meaningful


- None



++ Voluntary opt-in


Giving the product away for free in its initial launch phase carries a strong “learning by doing” element, i.e. a form of customer education. Moreover, a 24h toll-free hotline is available for inquiries.


++ Enrollment is straight forward through USSD with few questions asked, on the spot acceptance. Exclusions are minimal. Claim requirements are also reduced to an absolute and flexible minimum.

7 Strong measures to ensure low transaction costs ++

Fully digital enrollment and (in phase 2) digital collection, plus simplified processes and documentation requirements allow for efficient, low-cost mass-scale administration




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

17


C. Product Brochure

>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

18

6. India: Life + Savings


Sarve Shakti Suraksha (SSS)


5-year term life insurance with systematic savings incorporated

Company name Bajaj Allianz Life Insurance Company Limited

Country India


Non-bank Microfinance Institutions (MFIs), Regional Rural Banks, Banking Correspondents, Customer Support Centers, Cooperatives


Launch date: April 2008 Stop date: effective August 2013, this product has been closed for the

issuance of new group policies, due to regulatory changes Last policies will mature in 2019


A combination of term insurance and systematic savings benefits designed to provide risk protection as well as alternative savings opportunities

The product term is 5 years

Group or individual product Group Insurance


Voluntary opt-in


Sum Insured: Minimum INR 2500 (~ USD 40), no limit on maximum coverage (Subject to underwriting limits)

Risks covered: Natural and accidental death + disability


Minimum INR 500 (~ USD 7.50) per annum no limit on maximum premium


INR 1,750 (~ USD 25)

Other comments The product has won numerous awards, including the Skoch Award for Financial Inclusion 2011 & 2012


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

19

6. India: Life + Savings

Product: Sarve Shakti Suraksha (SSS) Ranking2 Rationale / Comments


B Developing country or emerging market India is an emerging market according to S&P



Majority of the premiums collected for this product are under INR 2,000 (~ USD 30) per year

D No government subsidies of more than 50% All premiums are paid by the customer.

There is no premium subsidy

1 Significant contribution to risk management of end customers +

SSS offers life coverage and a savings feature but claims and especially savings balances are relatively small, even for low-income Indians. Moreover, in case of RBBs outstanding loan balances are deducted first


- None



++ It is a voluntary opt-in. In some cases premium amounts are also bundled with the loan installments to make the product affordable. However, there is no compulsion from the distribution partner’s side at any point in time


Allianz hotline printed on every brochure and policy document. A systematic “Value for the Customer” education initiative has been put in place, too


++ Guaranteed issuance except where questions on the health declaration are marked as affirmative. Only exclusion: Suicide not covered in year 1


The delivery channel fully integrates the product into existing business processes. Collection is often aligned with loan repayment. Other operational tasks are also outsourced


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

20

7. Indonesia: Credit Life Plus (Updated)


Payung Keluarga (Family Umbrella)


Term Life (attached to credit accounts), with riders

Company name Allianz Indonesia

Country Indonesia


Banks, MFIs


1 Sep 2006 for base product 27 Nov 2013 for riders


Compulsory group credit life coverage (conventional or takaful) with flexible benefits and a voluntary personal accident riders



Compulsory for base product (with benefit package pre-configured by MFI), and voluntary for add-on riders


Mandatory base Product: Risk: Death of debtor and spouse (optional) Benefit: Outstanding loan balance, or original loan amount Additional “funeral” benefit of up to 2x original loan (optional) Loans: IDR 0 – max. 200mn (~ USD 0 - 15,000)

Voluntary rider (since Dec-2013): Personal Accident for accidental death and total or partial

permanent disability, with benefits of up to IDR 25,000,000 (~ USD 1,800) - pro-rated for partial disability

Home Insurance for fire; with relocation benefits up to IDR 5,000,000 (~ USD 500) and additional accidental death benefit of up to IDR 5,000,000 (~ USD 500)

Hospital Cash; with daily lumpsum of up to IDR 250,000 (~ USD 25) from 1st day of hospitalization, for max. 180 days, and max. IDR 2,500,000 (~ USD 250) of surgery benefits


Mandatory base Product: IDR 100 to 1mn (~ USD 0.05 – 75), depending on loan amount,

tenor & benefits Voluntary rider (annualized premium, coverage runs as long as loan):

Personal Accident: IDR 8,000 – 20,000 (~ USD 0.60 – 1.50) Home Insurance: IDR 5,000 – 30,000 (~ USD 0.5 – 3) Hospital Cash: IDR 100,000 – 250,000 (~ USD 10 – 25)


Base Product: IDR 12,000 (~ USD 0.90) Rider: n.a.

Other comments Base product is modular, with theoretically 54 different benefit configurations for MFIs to choose from

Additional resources MILK Doing the Math - Brief no 36 (Microinsurance Centre 2015) Case Study: Escaping the credit life gap (Allianz 2015) Case Study: How Allianz Indonesia reached over 1 million with

microinsurance (Allianz 2013)


>> back to Overview

http://www.microinsurancecentre.org/resources/documents/milk-brief-36-credit-life-insurance-in-indonesia.html�

https://www.allianz.com/media/responsibility/documents/Allianz_LearningJourney_PilotingAdd-on_Products_Ver23_20150330_YP.pdf�

https://www.allianz.com/v_1364402141000/media/responsibility/documents/Allianz_Microinsurance_Indonesia_Payung_Keluarga_Case_Study_on_Success_and_Lessons.pdf�



© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

21


Product: Payung Keluarga Ranking2 Rationale / Comments

A Insurance principles applied Applied

B Developing country or emerging market Indonesia is an emerging market according to S&P



98% of insured loans are under IDR 5mn (~ USD 370). This serves as a reliable proxy for „majority low income“ customers



Death of a breadwinner is a significant risk to low-income families in Indonesia. Although most loans are covered for the outstanding balance only, 20% of them also carry some cash payout to the families. The voluntary personal accident rider adds further flexibility to customers.


- None

3 End-customers involved in product development +

Extensive market research was done to understand the target market. Life risk was only the top4 identified customer risk. The voluntary hospital cash rider, though, addresses the top1 identified customer risk of sickness.


+ The base credit life cover is compulsory for customers as per the MFIs benefit configuration. However, the additional rider can be taken by customers on voluntary basis.

5 Customer education and feedback mechanisms in place +

Brochures are provided by some MFIs. Other MFIs distribute member cards instead. MFI staff is also equipped with flip-charts to explain the product on the spot. Direct helpline and Allianz address are not provided, except for the rider product. No systematic feedback collection.


++ Free coverage limit up to IDR 10mn (~ USD 730). Only 2 exclusions: Suicide and insurance related crime (+ age limit 17-65)


Product, distribution and collection are fully integrated with MFI micro loans, including for riders. Most of the data entry and claims handling is also “outsourced” to the MFIs


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

22


C. Product Brochure – Compulory base product

>> back to Overview

Member Card as alternative to brochure

Front

Back

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

23


C. Product Brochure – Voluntary add-on rider

Front

Back

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

24

8. Indonesia: Term Life (New)


“Si Peci” (abreviation of “Asuransi Penuh Cinta” or Insurance filled with Love)


Term Life Insurance

Company name Allianz Indonesia

Country Indonesia


Microfinance Institutions (MFIs), Allianz Agents


1 July 2015


Simple term Life insurance with guaranteed acceptance in voucher format that has a one year duration and one-time premium of IDR 50,000 (~ USD 3.70). The policy is activated by sending a unique activation code printed on the voucher card via SMS to Allianz and coverage is immediately confirmed by Allianz via SMS as well.

Group or individual product Individual


Voluntary opt-in


Risk covered: Death due to all causes Sum insured:

Natural Death: IDR 5mn (~ USD 370) Accidental Death: IDR 25mn (~ USD 1,800)


• All vouchers cost IDR 50,000 (~ USD 3.70) and are valid for one year


IDR 50,000 (~ USD 3.70)

Other comments “Si Peci” is a standard product that was developed under the guidance of AAJI, the Indonesian Life Insurance Association, and is currently marketed by a number of Indonesian life insurance companies.

Only one “Si Peci” policy can be bought and activated per person. This product replaced the previous “Kartu Proteksiku” scratch-card

Personal Accident product of Allianz.


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

25


Product: Si Peci Ranking2 Rationale / Comments


B Developing country or emerging market Indonesia is an emerging market according to S&P and a



Product is mainly distributed through MFIs that focus on low-income customers. Moreover, the product was specifically developed as a microinsurance product by the Indonesian Life Insurance Association.



Death is a significant risk for low-income families in Indonesia. The sum insured for natural death is meaningfully high and the “payout to annual premium ratio” of 100 for natural death is good.


- None

3 End-customers involved in product development -

No. During the product development process, the Indonesian Life Insurance Association did not carry out direct customer research. It relied on the input and experience of its member insurance companies.


++ 100% voluntary


Customer receives full policy wording as booklet and a handy insurance card to be put in wallet, including Allianz service number and address.


++ Simple-to-understand product benefits, costs and product format (voucher); automatic acceptance via SMS with only two exclusions (suicide and insurance related crime).


SMS activation and single premium payment minimize distribution and collection costs. Claim settlement is traditional. No integrated IT system.


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

26


C. Product Brochure

>> back to Overview

Insurance Voucher - Front

Insurance Voucher - Back

Brochure

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

27

9. Ivory Coast: Funeral Insurance


Assurance Obséques (Funeral Insurance)


Funeral Insurance

Company name Allianz Ivory Coast

Country Ivory Coast


Microfinance Institutions (MFIs)


October 2009

1-sentence product description Payment of a lump sum in case of death due to any cause, with variable options (accidental death, education grant for children, family coverage); exact offering may vary per MFI



Voluntary opt-in


Death: lump sum from XOF 300,000 to 2,000,000 (~ USD 500 – 3,400), depending on selected benefit plan

With some MFIs, spouse, children, and parents can be selectively added to

coverage the death benefit is doubled in case of accidental death the insured can choose to have approx. 60% of the death

benefit paid directly to an undertaker a supplementary education rider can be added, which provides

additional XOF 250,000 to 500,000 (~ USD 420 – 840) for 4 to 6 months as school fees payment (depending upon chosen option)


From XOF 5,000 to 92,000 (~ USD 8.50 – 150) per year An additional XOF 1,000 (~ USD 1.70) one time subscription fee is

charged


XOF 22,000 (~ USD 35)

Other comments None


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

28


Product: Assurance Obséques Ranking2 Rationale / Comments



in 2011, is still very much a developing country


The customers of the MFI distribution partners are low-medium segment, with at least 80% of the insured belonging to the 60% of population with the lowest incomes

D No government subsidies of more than 50% Premiums are not subsidized

1 Significant contribution to risk management of end customers + +

Funerals are a significant expense in Ivory Coast, and the product significantly contributes to covering these. Family and parents can be covered as well at very competitive pricing. The possibility to add an education rider gives further options to customize the product to customer needs.


- No tangible other benefits. But with some MFIs the insured has the option that part of the payout is paid to the undertaker to ensure a proper funeral, no matter what

3 End-customers involved in product development - No customer studies


++ 100% voluntary


Simple language brochures are provided. Some MFIs also give Allianz contact details on their brochures. No service hotline and systematic collection of customer feedback.


++ Simple base product, with simple add-on options (e.g. education rider), no medical selection


The MFIs takes charge of distribution, subscription, data and premiums collection, and parts of the claims process. This significantly lowers costs


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

29


C. Product Brochure – MFI1

Outside

>> back to Overview Inside

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

30


C. Product Brochure – MFI2

>> back to Overview

Front

Back

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

31

10. India: Life + Savings (new)


“CSC Bachat Plus” (CSC Savings Plus)


Variable Life Insurance Plan

Company name BajajAllianz Life Insurance Company Limited

Country India


CSCs only, i.e. Common Service Centers. Under CSC, a special purpose vehicle has been formed to enable services through the CSC network. These centres offer public and private services, such as private financial services like insurance, via a fully digitalized platform. There are now over 200,000 CSCs in India.


26 August 2015

1-sentence product description Life insurance with regular premium contributions, the larger share of which will accumulate as a savings value (Policy Account Value) and the smaller share of which will be used to pay the Life insurance cover and administration; at policy maturity, customers will receive more back than they paid in gross premiums.



Voluntary opt-in


Risk covered: Death due to all causes of policyholder Sum insured: between INR 12,600 (~ USD 190) and INR 200,000 (~

USD 3,100) Maturity Benefit: Policy Account Value, i.e. net paid premiums credited

with 1% guaranteed interest rate every year and additional interest rate of 4% (years 1 – 5) or 0.5% (years 6+); guaranteed minimum maturity benefit is gross paid premiums (less any withdrawals) compounded at 1% per year


Minimum INR 150 (~ USD 2.30) per month or INR 1,800 (~ USD 30) if yearly mode

Maximum INR 1,665 per month (~ USD 25) or INR 20,000 (~ USD 310) if yearly mode


INR 2,000 (~ USD 30) per year

Other comments CSC-labeled products fall under a special CSC guideline of the Indian insurance regulator. They can only be distributed through the CSC network. Other distribution channels are not allowed.

All products to be sold from these CSC outlets have to be pre-fixed with the name “CSC”.


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

32

10. India: Life + Savings (new)

Product: CSC Bachat Plus Ranking2 Rationale / Comments

A Insurance principles applied Fully applied to the risk portion of the product. There is also an interest bearing savings component.

B Developing country or emerging market India is an emerging market according to S&P and a



Majority of the premiums collected for this product are under INR 2,300 (~ USD 35) per year

D No government subsidies of more than 50% All premiums are paid by the customer. There is no

premium subsidy


CSC Bachat Plus offers the double benefit of life coverage and a savings feature with clear guarantees. The sums insured and maturity values are high enough to make a difference for low-income Indians.


- None

3 End-customers involved in product development -

No. The regulations on CSC products by the insurance supervisor leave little room for product feature flexibility. Customer involvement could therefore only have little impact on product design.


++ 100% voluntary


There is no direct customer education from the company to customers in place. However, in order to obtain their necessary insurance sales license, CSC sales staff need to undergo 20 hours of training to educate customers on the product. Contact numbers for complaints are clearly provided, and complaints are tracked and reported on as required by the regulator.


+

For a variable insurance plan, the product is relatively simple. However, an understanding of interest rate guarantees is required. Regulations lead to a few rather complex definitions, e.g. of the exact Sum Assured at Death.


CSC products piggy-back on the fully digitalized CSC infrastructure of over 200,000 CSCs in India. This ensures low operational costs, transparent digital processes and good accessibility for customers, even in rural areas.


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

33

11. India: Crop Index


Weather Protect


Index Insurance

Company name BajajAllianz General Insurance Co. Ltd.

Country India


Banks


March 2014

1-sentence product description This insurance is subsidized by the public Indian WBCIS scheme (Weather-Based Crop Insurance Scheme) and covers loan-taking smallholder farmers against adverse weather conditions through weather related index insurance. The more adverse the index, e.g. below-average rainfall, the higher the likely losses for the farmer and the higher the insurance payout. up to a maximum sum insured



Compulsory (tied to agricultural loans)


Cover: Adverse behavior of a weather index (as a proxy for actual losses) with payouts starting from a pre-defined trigger point (strike) and proceeding in notional steps until a pre-defined exit point, at which the maximum sum insured would be paid

Several weather indices can be used, e.g. rainfall (excess, deficit, dry spells), temperature (high/low), humidity, wind speed or any other measurable weather parameter

The trigger, exit and sum insured depend on the location, season, crop, claim experience and business potential

Sum insured is equal to the loan amount Avg. loan size is INR 15,000 – 30,000 (~ USD 230 – 460) for food crops

and INR 20,000 – 100,000 (~ USD 310 – 1,500) for cash crops


Per hectare: INR 250 to 1,000 (~ USD 3.80 – 15) Per loan: 5-12% of loan for rainy season crop and 4-8% for winter

season crop


Around INR 1,700 (~ USD 25) per loan for food crops and INR 5,000 (~ USD 75) per loan for cash crops

Annualization is not applicable because coverage only runs 3.5 months

Other comments This product carries public premium subsidies in the range of 30% – 75% under the WBCIS scheme

This assessment only relates to the portion of the portfolio where subsidies do not exceed 50%

If subsidies exceed 50%, Allianz Group’s microinsurance definition does not consider it as micro-insurance but rather as social protection schemes. It is excluded from microinsurance reporting

The product is also available on voluntary basis. However, this option plays a marginal role


>> back to Overview

http://www.allianz.com/microinsurance�

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

34


Product: Crop Index Ranking2 Rationale / Comments


B Developing country or emerging market India is an emerging market according to S&P and a



The government’s weather index scheme, under which this products is brought to market, specifically targets low-income smallholder farmers.

D No government subsidies of more than 50%

Up to 50 percent subsidized by the Indian public authorities. Where subsidies exceed 50 percent, such business is excluded from reporting.


Weather represents the single major source of risk for rain-fed farming in India. The product significantly contributes to mitigate such risks (e.g. draught) and allows farmers continued access to agricultural credits.


- None.

3 End-customers involved in product development +

End customers are not directly involved but the Government involves representatives from the district authorities in finalizing the Index and negotiates with the insurance company to make the triggers farmer friendly.


- Mostly compulsory because tied to agricultural loans. A small number of non-loaning smallholder farmers also take the subsidized insurance on a voluntary basis.


Each farmer receives a cover note with a BajajAllianz contact number on it. Moreover, BajajAllianz General puts a lot of effort into creating product awareness (farmer meetings, van campaign, marketing collaterals etc.)


+

Only few exclusions apply, but the product details are still complex, especially the definition and measurement of the trigger and exit points. It is difficult for farmers to accurately predict their claim payouts, but the close involvement of banks helps to explain and process claim payouts.


Enrollment data requirements are numerous and time consuming, but banks do help with enrollment since they already have most data at hand. Due to the index-based claim mechanism, farmers do not need to file claims. Claims are triggered automatically if the index strikes.


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

35


C. Product Brochure

>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

36

12. India: Group Term Life (Updated)


Group Term Life


Pure Risk Insurance coverage for a period of one year

Company name Bajaj Allianz Life Insurance Company Limited

Country India


Non-bank Microfinance Institutions (MFIs)


Not available


An insurance product designed to provide risk protection against natural death to loan or savings customers

Other benefits include an accidental death & disability rider

Group or individual product Group Insurance


Compulsory, with voluntary doubling of sum insured with some MFIs


Sum Insured: Minimum INR 1,000 (~ USD 15), no limit on maximum coverage

Some MFIs allow a voluntary doubling of the sum insured against a doubling of the premium

Risks covered: Natural and accidental death Disability rider is optional

(but rarely implemented in microfinance context) For loans, the MFIs deduct the outstanding loan balance (if any)

from the sum insured For savings, the full sum insured is paid to the beneficiary


Depending on the group, underwriting rate is set by the company’s underwriter

Varies based on group demographics


INR 100 (~ USD 1.50)

Other comments In 2015, the product was for the first time attached to savings products of MFIs and the possibility of voluntary sum insured doubling was introduced. Previously, the product was fully compulsory and only attached to loans.

GTL (Group Term Life) is used for the dominant form of 1-year micro-loans. For multi-year loans, technically a different product called “GCPP (Group Credit Protection Plus)” is used. However, besides duration all other characteristics are the same. This assessment and our reporting lumps both products together.


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

37

12. India: Group Term Life (Updated)

Product: Group Term Life Ranking2 Rationale / Comments





All loan customers of MFIs are enrolled in the scheme. The great majority of MFI customers are low to very low income

D No government subsidies of more than 50% All premiums are paid by the customer.

There is no premium subsidy


The outstanding loan can be paid off from the sum insured in case of death. The difference is paid to the beneficiaries, but it is often a small amount, unless the MFI allows for a voluntary increase of the sum insured.


- None



+ In the context of an MFI opting for this product, it is compulsory. This applies to lending as well as savings products to which this product is attached. Some MFIs allow for voluntary doubling of the sum insured.


Customers receive insurance certificates of insurance with Allianz name and address. No service line and systematic feedback collection in place


++ Simplified product design and easy to explain. The only exclusion is suicide not being covered in year 1. It is covered for repurchases from year 2 on


Distribution and collection is outsourced to the MFI for lower costs. The MFIs also forward certificates of insurance & assist with claims


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

38

13. Malaysia: Motorcycle + PA


Motorcycle & Personal Acccident


Motorcycle & Personal Accident

Company name Allianz General Malaysia

Country Malaysia


Postal Service


1 July 2011

1-sentence product description Motorcycle coverage for third-party liability and (optional) loss and damage to due to accident + Personal Accident as semi-bundled extra offer



Voluntary opt-in


Motorcycle loss & damage: maximum current market value of motorcycle

PA: Death due to accident: MYR 5,000 (~ USD 1,200) PA: Total permanent diability or dismemberment:

MYR 5,000 (~ USD 1,200) PA: Bereavement benefit: MYR 500 (~ USD 120)


for Motorcylce: n.a.; for PA: MYR 15 (~ USD 3.70) per year


For Motorcycle: MYR 100 (~ USD 25) For PA: MYR 15 (~ USD 3.70)

Other comments Motorcycle premiums vary per brand and engine volume Product is also marketed by tied agents at different premiums

(excluded here) Third-party liability cover is a statutory requirement for motorcycles in

Malaysia. Additional motorcycle cover and personal accident cover are voluntary


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

39


Product: Motorcycle & PA Ranking2 Rationale / Comments


B Developing country or emerging market Malaysia is an emerging market according to S&P



Customer base of postal service is generally low-income, especially for insurance sales



Motorcycle coverage is comparable in importance to car coverage in developed markets. It is a statutory requirement in Malaysia. PA is sensible for motorcyclist as a high risk group


- None



++ Several options to choose from: Third-Party liability only (a statutory requirement), comprehensive (TPL + loss & damage) and on-top Personal Accident cover


Brochures and policy documents are provided, including an Allianz customer service hotline. Coverage is widely used and well known in Malaysia.


- Motorcycle policy wording is quite lenghty, the same as for all other distribution channels (e.g. tied agents), and the same as for car insurance


Distribution through low-cost Malaysian postal service allows somewhat lower distribution and operational costs (e.g. vis-à-vis tied agents)


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

40


C. Product Brochure

Outside Personal Accident only. No brochure for Motorcycle component.

>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

41


C. Product Brochure

>> back to Overview

Inside Personal Accident only. No brochure for Motorcycle component.

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

42

14. West Africa & Egypt: Credit Life


• Assurance Décès Emprunteur (Life Insurance for Entrepreneurs)


• Term Life (attached to credit accounts)

Company name • Allianz Africa and local subsidiaries

Country • Cameroon, Burkina Faso, Egypt, Ivory Coast, Madagascar, Senegal


• Microfinance Institutions (MFIs)


• 13 January 2008

1-sentence product description • In case of death of the loan taker due to all causes or in case of total permanent disability of the loan taker due to accident, Allianz repays 100% of the initial loan amount

Group or individual product • Group


• Compulsory


• Death of the loan taker due to all causes • Death of spouse (as voluntary add-on, Senegal only) • Total permanent disability of the loan taker due to accident (medically

certified) • Sum Insured: 100% of the initial loan amount from which:

• The MFI receives the outstanding loan balance • The micro-entrepreneur’s family receives the difference

between the initial loan amount and the outstanding loan balance


• Avg. 0.6% of loan amount (depending on risk characteristics of the insured group)


• USD 3 per loan • loans run for an average of 12 months with an avg. loan size USD 540

Other comments • Developed and distributed in cooperation with Planet Guarantee (except Cameroon and Ivory Coast)


>> back to Overview

http://www.planetguarantee.org/�


© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

43

14. West Africa & Egypt: Credit Life

Product: Assurance Décès Emprunteur Ranking2 Rationale / Comments


B Developing country or emerging market

Burkina Faso, Cameroon, Egypt, Ivory Coast, Madagascar and Senegal are all developing countries according to World Bank


The vast majority of insured are low income micro-entrepreneurs. This can be seen from their average loan size of USD 540 (data from Cameroon and Ivory Coast not included)



Death is a significant risk and there is a direct payout to the family (after deduction of the loan balance). Coverage of HIV+ or diabetic entrepreneurs facilitates their access to credit. Accidental disability risk is less significant


- None


A market and demand study was done. Product design and education materials were pilot tested with micro-entrepreneurs


- The product is compulsory for the credits of all MFI partners

5 Customer education and feedback mechanisms in place -

The MFI’s credit officers are trained to orally explain the product to their clients, but no local language material for the customer. Regular exchange on customer complaints between MFIs and the broker (Planet Guarantee)


++ No pre-underwriting. Only 3 exclusions (suicide, radiation, war). No medical exclusions. Simplified disability definition and easy claims documentation


The mandatory underwriting-free group insurance approach lowers transaction costs. Most processes are outsourced to the MFIs and the broker (Planet Guarantee) which operate on lower costs than Allianz


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

44

15. West Africa: Crop Index


Assurance Récolte Sahel (Sahel Harvest Insurance)


Index insurance

Company name Allianz Africa and local subsidiaries

Country Burkina Faso and Mali


Microfinance Institutions (MFIs), banks, agricultural cooperatives and agro-dealer networks


1 June 2011

1-sentence product description Covers outstanding loans of smallholder farmers; claims are triggered automatically if the rainfall is insufficient for proper growth of the farmers’ crops (corn or cotton)



Compulsory


If evapotranspiration index1 below 54 – 58% (depending on crop and region), i.e. total crop failure: Full coverage of outstanding loan amount

If evapotranspiration index* between approx 65% and 54 – 58%, i.e. partial crop failure: Partial coverage of outstanding loan amount


10 – 12% of loan amount, depending on crop and region


USD 27 per loan; avg. loan size is USD 235 (avg. loan duration: 3.5 months)

Annualization not applicable because planting season only lasts 3.5 months

Other comments Only sold in a 4 - 6 weeks sales window before planting season Expansion to more markets and crops types is planned 100% of the risk is reinsured by international reinsurance partners Developed and distributed in cooperation with

Planet Guarantee

Additional resources MILK Doing the Math – Brief no 35 (Microinsurance Centre 2015)


>> back to Overview 1) Evapotranspiration is the sum of evaporation of water from plants and soil.

This index is independently measured by third parties using satellite data.


http://www.microinsurancecentre.org/resources/documents/milk-brief-35-doing-the-math-loan-protection-for-maize-farmers-in-burkina-faso.html�


© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

45


Product: Assurance Récolte Sahel Ranking2 Rationale / Comments

A Insurance principles applied Applied. The risk of insufficient rainfall in the insured areas is high. This is why the premium rate is also relatively high at around 10-12%

B Developing country or emerging market Burkina Faso, Mali and Senegal are developing countries

according to World Bank


The vast majority of insured are low income farmers. This can be seen from their small farm sizes (avg. 1.3 ha) and their low avg. loan size of USD 235


No government subsidies. However, an initial grant by AGRA (Alliance for a Green Revolution in Africa) helped with product development and piloting


Low rainfall is a great risk for farmers. Outstanding loans are hard to repay when harvests fail. The product addresses this and eases access to credit


- None


Extensive market and demand study before product development. Product and education materials were pilot tested with a small number of farmers.


- Although the product can be offered on a voluntary basis, virtually all current distribution partners have made coverage mandatory for their agro-loans


Intensive training of distribution channels and their field representatives. Raising of awareness through posters, radio, film. However, no access to a hotline or systematic feedback mechanism


+ No underwriting and no exclusions. Conceptually, the index is straightforward. But the exact technical definition and measurement method is complex. The product therefore requires in-depth explanation


The (mandatory) group insurance approach lowers transaction costs. The claims process is simplified by the index as it allows automatic triggering of claims. Reinsurance coverage is essential and needs to be administered


>> back to Overview




© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

47


C. Product Brochure

>> back to Overview

Inside Personal Accident only. No brochure for Motorcycle component.

Product brochure from Mali

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

48

16. Burkina Faso: Savings-Life


Assurance Super Compte Epargne (Super Savings Account Insurance)


Term Life (attached to savings accounts)

Company name Allianz Burkina Faso

Country Burkina Faso


Post Office


2002 (also see “Other comments” below)

1-sentence product description Voluntary annual term life insurance attached to postal savings accourts, with premiums deducted from annual interest earned



Voluntary opt-in


Death of Savings Account holder: lump sum of XOF 50,000 (~ USD 85)


XOF 1,000 per year (~ USD 1.70) Premium is deducted from annual interest payment on the postal

savings account


XOF 1,000 (~ USD 1.70)

Other comments Product was newly classified in 2013 as Microinsurance according to Allianz Microinsurance Definition, although it has already been running since 2002

Product automatically renews for another year if it is not cancelled by the insured


>> back to Overview


© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

49

16. Burkina Faso: Savings-Life

Product: Assurance Super Compte Epargne Ranking2 Rationale / Comments


B Developing country or emerging market Burkina Faso is a developing country according to World

Bank


Customer base of postal service is generally low-income, especially for insurance sales

D No government subsidies of more than 50% Premiums are not subsidized


Funerals are a significant expense in Burkina Faso, and the product contributes to covering these. However, the premium-to-benefit ratio of 1:50 is relatively low and the benefit of XOF 50,000 (~ USD 85) may just cover a fraction of the actual post-mortem expenses of the family.


- No tangible other benefits.

3 End-customers involved in product development - No.


+ 100% voluntary, but automatic renewal process may lead to customers forgetting about their coverage.


Product is just verbally explained by bank staff and the enrollment form contains the coverage conditions. No brochure, service hotline and systematic collection of customer feedback given.


++ Extremely simple product with just one benefit and premium option; no medical selection


Very convenient premium payment through automatic deduction from interest earned on the savings account. This minimizes collection costs.


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

50

17. India: Cattle & Livestock (Updated)


Cattle & Livestock Insurance Policy


Livestock insurance

Company name BajajAllianz General Insurance

Country India


Banks, MFI, Co-ops Dairies, Credit Co-operative Societies, Business Correspondents


April 2005


Coverage for cattle and other livestock (e.g. sheep and goats) against the risk of death due to multiple causes + additional disability option to insure failure to produce milk or to reproduce due to certain illnesses

Group or individual product Mostly group (85%) individual purchase also possible (15%)


Mostly compulsory, but voluntary purchase is also possible


Death: Agreed Sum Assured, i.e. generally market value of cow, on average INR 30,000 - 40,000 (~ USD 460 - 620)

Disability: Percentage of Sum Assured


n.a


INR 800 - 1,200 (~ USD 10 - 20)

Other comments The product is often tied to bank loans for cattle for low-income farmers where the loans themselves carry low interest rates due to government subsidies


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

51

17. India: Cattle & Livestock (Updated)

Product: Cattle/Livestock insurance Ranking2 Rationale / Comments





The great majority of coverage is tied to government-subsidized loans for low-income farmers


No government subsidies for insurance premiums. However, interest rates on the underlying loans (if any) are mostly subsidized


Cows are a crucial income source for millions of low-income Indian farmers. Death of an animal can cause severe financial stress


- None



+ The product can be purchased individually. The disability rider is also optional. However, when tied to bank loans, the product is compulsory

5 Customer education and feedback mechanisms in place ++ Limited customer information provided,

but still awareness is very high


- The policy wording is quite long and technical. No product difference is made for low-income customers vis-à-vis large scale farmers (although most claims get paid as benefit to low-income people)


Ear tags are used to reduce fraud and associated costs. Distribution mainly through banks also reduces distribution and operational costs


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

52

18. India: Personal Accident


“Janata” Personal Accident


Personal Accident

Company name BajajAllianz General Insurance Company Limited

Country India


Banks, MFIs, Business Correspondents


1 April 2006

1-sentence product description Yearly renewable voluntary personal accident insurance that covers accidental death and disability



Voluntary opt-in


Death or severe dismemberment/total permanent disability due to accident: sum insured min INR 25,000 – 50,000 (~ USD 380 – 770)

Disability is defined as a) severe dismemberment or b) total and permanent inability to pursue any kind of work c) loss of hearing (this cover only available in Business Correspondent channel)

Partial dismemberment (loss of 1 eye or 1 hand or foot): 50% of sum insured


INR 15 - 100 (~ USD 0.25 – 1.50) per year


INR 40 (~ USD 0.60)

Other comments The product is often voted for by annual general assemblies of cooperatives. On positive vote, the policy gets extended for another year and cover is then mandatory for all members.


>> back to Overview

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

53

18. India: Personal Accident

Product: Janata Personal Accident Ranking2 Rationale / Comments





Distribution partners focus on low-income households. This can also be seen from the low average premiums of INR 40 (~ USD 0.6) per year



Death or disability due to accident is rare among the general population. However, especially the distribution through Business Correspondents now carries the product to rural areas, where accident risk among agricultural population is higher than usual (e.g. snake bites)


- None



++ Voluntary opt-in


Currently all information to customers is oral. No brochures etc. Policy documents are in English which most customers do not understand


- The product is pre-underwritten. However, multiple exclusions exist. Policy wording is not simplified


Collection is handled by the distribution partner. New enrollments and collection data are processed every 15 days as a simple batch processes


>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

54

Non-Qualifying1 1. Ivory Coast: Mobile Savings


“Allianz Epargne”


Pure savings plan (no risk element)

Company name Allianz Côte d’Ivoire Assurance Vie

Country Ivory Coast


Telecommunication company


1 June 2012


Mobile savings plan with regular contributions for min. 3 years with 85% investment earnings on the net premium credited to the account value (example: 10% investment total return on net premiums 8,5% credited to account)



Voluntary opt-in


At the end of the savings plan’s term, or in case of prior death or total permanent disability, the account value accumulated until this date will be returned in full to the account holder

Benefits: terminable annuities chosen by the insured Max. 30% of the account value can be withdrawn every year

(except in year 1) at no penalty; total withdraw is possible after two years at 5% surrender fee


Premiums are minimum XOF 3,000 (~ USD 5) per month Premiums can also be paid quarterly, semi-annually

or annually Premiums are automatically deducted from

“mobile money” account Premiums are subject to an administration fee of 6.6%,

the net of which will be invested with annual results credited 85% to the account


XOF 40,000 (~ USD 65), based on the fact that most policyholders choose the monthly premium payment option

Other comments

Minimum age limit is 21; no maximum age limit Enrollment still happens by physical form filling at

the telco’s outlets, but premium payment is only possible through mobile money


>> back to Overview

1) Non-qualification means that a product has failed to meet any of the four basic criteria A – D of the Allianz Group microinsurance definition, although they may still address needs of low-income people. Sample cases are shown here to better illustrate conditions under which this may happen.

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

55

Product: Allianz Epargne Ranking2 Rationale / Comments

A Insurance principles applied This product is a pure savings product without any risk coverage in it. Therefore it cannot be considered a (micro)insurance product. Knock-Out.


in 2011, is more still very much a developing country


The vast majority of the population of Ivory Coast is low income. Moreover, the low sums insured only appeal to low-income segments


1 Significant contribution to risk management of end customers


3 End-customers involved in product development


5 Customer education and feedback mechanisms in place


7 Strong measures to ensure low transaction costs

Overall ranking3 not micro

Note: Product is not considered micro due to failure on criterion A

>> back to Overview





© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

58

Non-Qualifying1 2. Malaysia: Life & Pers. Accident


1AZAM plan (AZAM = Akhiri Zaman Miskin, i.e. the End of the Poverty Era)


Group Life & Group Personal Accident

Company name Allianz Life Insurance & Allianz General Insurance (bundled)

Country Malaysia


National Welfare Foundation Malaysia (Government agency)


Launch: 1 January 2011 End: 31 December 2011 (after government subsidies stopped)

1-sentence product description Government sponsored life insurance program for 100,000 households classified as very poor by the government.

Group or individual product Group insurance


Automatic enrollment by the National Welfare Foundation Malaysia


Natural death: Insured MYR 15,000 (~ USD 3,700) Spouse MYR 1,000 (~ USD 250) Child MYR 500 (~ USD 120)

Accidental death: Insured MYR 25,000 (~ USD 6,000) Spouse MYR 11,000 (~ USD 2,700) Child MYR 5,500 (~ USD 1,400)


MYR 120 (~ USD 30) flat for insured, spouse and 2 children


MYR 120 (~ USD 30) Premium paid by the National Welfare Foundation Malaysia

Other comments Natural death cover is provided by Allianz Life Insurance

Accidental death cover is provided by Allianz General Insurance


>> back to Overview

1) Non-qualification means that a product has failed to meet any of the four basic criteria A – D of the Allianz Group microinsurance definition, although they may still address needs of low-income people. Sample cases are shown here to better illustrate conditions under which this may happen.

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

59


Product: 1AZAM plan Ranking2 Rationale / Comments


B Developing country or emerging market Malaysia is an emerging market according to S&P



Yes, 100% of insured are “very poor” according to government definition


Premium 100% subsidized by Malaysian government in 2011. Knock-Out. Discontinued because government support discontinued in 2012

1 Significant contribution to risk management of end customers


3 End-customers involved in product development


5 Customer education and feedback mechanisms in place


7 Strong measures to ensure low transaction costs

Overall ranking3 not micro

Note: Product is not considered micro due to failure on criterion D

>> back to Overview


Non-Qualifying1 2. Malaysia: Life & Pers. Accident



© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

60

Exchange Rates

This product pool uses the below exchange rates to convert local currency values to approximate and rounded US Dollar values. These rates are updated on yearly basis represent the average mid-price exchange rate over the course of the last calendar year.

Rounding rules

Currency Currency Code 1 USD =

Central African Franc BCEAO XOF 595.349

Colombian Peso COP 2,875.200

Egyptian Pound EGP 7.782

Indian Rupee INR 64.967

Indonesian Rupiah IDR 13,610.600

Malagasy Ariary MGA 3,195.620

Malaysian Ringgit MYR 4.029

Up to USD ... ... round to closest USD

1 0.05

5 0.10

10 0.5

100 5

1,000 10

5,000 100

10,000 500

Above 1,000

© A

llianz

SE

– E

mer

ging

Con

sum

ers

- 201

6

61

Disclaimer

These assessments are subject to the disclaimer provided below.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein may include statements of future expectations and other forward-looking

statements that are based on management’s current views and assumptions and involve known and unknown

risks and uncertainties that could cause actual results, performance or events to differ materially from those

expressed or implied in such statements. In addition to statements which are forward-looking by reason of context,

the words “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”,

“potential”, or “continue” and similar expressions identify forward-looking statements. Actual results, performance

or events may differ materially from those in such statements due to, without limitation, (i) general economic

conditions, including in particular economic conditions in the Allianz Group’s core business and core markets, (ii)

performance of financial markets, including emerging markets, and including market volatility, liquidity and credit

events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the

development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent

of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange

rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and

the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the

impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general

competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be

more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

No duty to update.

The company assumes no obligation to update any information contained herein.

>> back to Overview

Microinsurance Product Pool - Allianz...1) To learn more about the Allianz microinsurance values...

Documents

Transcript of Microinsurance Product Pool - Allianz...1) To learn more about the Allianz microinsurance values...