Saturday, June 18, 2011
Micro Insurance, Natural Complement of Microcredit Part.II
This is compounded by a range of options such as auto insurance products or comprehensive household. Lasting up to 4 years, time required for proper insertion into the economic fabric, it is available for less than € 1 per day.
The second offer was launched by AXA and Macif in partnership with ADIE in May 2007. Partly similar to the basic coverage, duration and price, it differs from the previous offer additional guarantees for specific depending on the type of activity. Note, for example, guarantees given for construction activities (from € 1,000 / year) that are legally binding assurances.
It is interesting to note that these offers are based on micro-insurance business model "producer-distributor-guide". To understand this model, back into the mechanisms of insurance. In an offer of insurance, there are three groups of activities involved: product design, sales and service. The design is linked to both the development and pricing to risk management of the insurance portfolio and investment of reserves and annual premiums. The sale includes all activities related to marketing, promotion and sale of the product. The service includes the collection, continuous premiums of policyholders and settlement of their compensation.
In Model "producer-distributor-guide", the producer performs all activities of product development and sometimes after-sales service, while the distributor is responsible for the act of selling the product that was recommended previously by the attendant.
Networks to aid the economic initiative are well equipped to play the role of accompanist, using the leverage of their existing networks and building on already established relationships of trust with the micro entrepreneurs during assembly files microcredit. The staffs of these networks still need to be trained in insurance products to be able to perform its consulting business.
The coach may also carry out the deed, but most often it is the producer or a third actor playing the role of distributor. In the provision of Contractors of the City, aid networks are not selling, they are responsible to the requirements and redirect to the creators of the City Entrepreneurs who takes care of distribution (no commissions) micro insurance products through its association and support the service remaining the sole representative of the member.