Saturday, June 18, 2011
Micro Insurance, Natural Complement of Microcredit Part.III
The combination takes advantage of this special role to provide support (including legal) in the Proceedings of the insured. Conversely, insurance products are best developed on the basis of specifications drawn up according to the needs and financial capacities of micro entrepreneurs by insurers who have the expertise and capital required.
It is clear that the design of the two products presented above are based on models of traditional products of insurance (liability, property and casualty business,) well understood by insurers and distribution models have proven otherwise.
The innovation of this type of product then essentially comes from the mix design "optimized" (an insurance policy and a simplified marketing price equal to the cost of production) and distribution of "proximity" (accompanied by networks of initiative Economic and associations).
The need for micro-entrepreneurs in terms of insurance is not new and one wonders why such offers micro insurance was not developed earlier. According to Mr. Schinzler, Chairman of the Supervisory Board of Munich Re, "the premium income is low administrative costs are relatively high and the infrastructure is lacking, as many arguments justifying the lack of interest of professional insurance for this market".
Micro insurance, such as microfinance as a whole, should not be seen as the broad market of tomorrow huge future profits (insurers partners do not mark-up on products and distribution fees are zero). Today, it should rather be seen as an activity to meet the challenges of sustainable development in Financial Services, a theme which is too often accused professionals of this sector of disinterest. The many recent initiatives in this area show the contrary a real desire...