Micro Insurance and Micro Credit Part.III

In Model "producer-distributor coach," the producer performs all product development activities and sometimes after-sales service, while the distributor is responsible for the act of selling the product that was previously recommended 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 staff of these networks still needs to be trained in insurance products to be able to perform its consulting business.
The coach may also carry out the deed, but more often it is the producer or a third actor playing the role of distributor. Contractors in the supply of the city, networks of support are not selling, they are responsible to the requirements and redirect to the creators of the City Contractors who takes care of distributing (without commission) micro-insurance products through its association and support the service remaining the sole representative of the member. The combination takes advantage of this special role to provide support (including legal) in the Proceedings of the insured.
Conversely, insurance products are better developed, based on specifications developed based on needs and financial capacities of micro entrepreneurs by insurers who have the expertise and capital required.

It is clear that the design of both products presented above are based on models of classic products 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 "local" (accompanied by networks of initiative Economic and associations).

The need for micro-entrepreneurs in terms of insurance is not new and it is questionable why such offers micro-insurance have not been 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 as to why the lack of interests of insurers in this market professionals. "
Micro insurance, such as microfinance in general, should not be seen as a vast market of the future with enormous future profits (insurers partners do not profit margin 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 the professionals of this sector of disinterest. The many recent initiatives in this area indicate the contrary a real desire...

Micro Insurance and Micro Credit Part.II

While microcredit is now well accepted in Europe among the types of funding, micro insurance is currently not among the first its risk management solutions. Yet it is a natural extension of microcredit to secure and sustain the long term activity initiated by the micro-entrepreneur.
The first offer micro insurance launched in Europe by Contractors of the City in December 2006. This "First Insurance Package" provides a standard insurance policy covering the three major types of risks faced by micro entrepreneurs and comprehensive coverage including professional liability, Welfare and Health. This is compounded by a range of options such as auto insurance products or comprehensive home. On a maximum of 4 years duration 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 the ADIE in May 2007. In part similar to the basic coverage, duration and price, it differs from the previous bid by the additional guarantees specific to the type of activity. Note, for example, guarantees for construction activities (from 1000 € / year) that are legally binding assurances.



It is interesting to note that these offers are based on micro-insurance business model "producer-distributor-coach." To understand this model, return on insurance mechanisms. In an offer of insurance, there are three groups of activities involved: product design, sales and service. The design is related to both the development and pricing to risk management of insurance portfolio and the 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 the insured and the settlement of their compensation.

Micro Insurance and Micro Credit Part.I

After demonstrating his interest in developing countries, micro-insurance - like micro-credit - investing developed countries. As proof, two offers micro insurance bound for micro entrepreneurs were launched in Europe in the last 10 months. Decryption ...

The importance of micro and vulnerability

Little media coverage, the world of micro, Nonetheless exciting. A study of DCASPL, 1 January 2004 there were in Europe 2,390,000 microenterprises, more than 95% of European  companies. All of these micro-employed 5,798,700 people, that is to say 1/4 of wage employment, and generated the same year more than 8% of  exports. In other words, micro enterprises are businesses that have real economic significance, and more, social.

Interesting phenomenon, according to INSEE figures for 2004, more than 220,000 micro-enterprises were created. And nearly a third of the creators were unemployed (half for more than a year). That is to say that much of the newly created small organizations, which are inherently fragile, are supported by people who are particularly vulnerable.

To address this vulnerability, micro entrepreneurs may find support from actors to promote economic initiatives such as PACE, ADIE  or active Europe. In addition to expert advice, these players offer solutions to meet the needs of the two main creators finance their project and manage risk.

Broadly, there are three main types of risks faced by micro entrepreneurs:

* The damage that the company could suffer in case of disaster;
* The damage that could cause the company to third parties;
* Risks that relate to people (health, disability ...).

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...

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.

Micro Insurance, Natural Complement of Microcredit Part.I

After demonstrating his interest in developing countries, micro-insurance - like micro-credit - investing developed countries. As proof, two offerings aimed at micro insurance. Little publicized the world of micro nevertheless exciting. According to a study of DCASPL, 1 January 2004 there were 2.39 million in France microenterprises alone that too, more than 95% of European companies. All of these micro-employed 5,798,700 people, that is to say one quarter of salaried jobs, and generated the same year more than 8% of exports. In other words, micro enterprises are companies that have real economic importance, and much more, social.

Interesting phenomenon, according to INSEE figures for 2004, more than 220,000 microenterprises have been established. And nearly a third of the creators were unemployed (half for more than a year). That is to say that a large proportion of these newly created small organizations, which are inherently fragile, are supported by people particularly vulnerable.

To address this vulnerability, micro entrepreneurs can find support from actors to promote economic initiatives such as PACE, ADIE. In addition to expert advice, these players offer solutions to meet the needs of two main creators: to finance their project and manage risks.

Broadly, there are three main types of risks faced by micro entrepreneurs:

* The damage that the company may suffer in case of disaster;
* The damage could cause the company to third parties;
* Risks that relate to people (health, disability ...).

While microcredit is now well accepted in France among the types of funding, micro insurance is currently not among the first their risk management solution. Yet it is a natural extension of microcredit, to secure and sustain the long term activity initiated by the micro-entrepreneur.
The first offering micro insurance was launched in France by Contractors of the City in December 2006. This "First Insurance Package" provides a standardized insurance policy covering the three major types of risks faced by micro entrepreneurs and comprehensive coverage including professional liability, Welfare and Health.