ClydeCo-Resilience-Inclusive Insurance Report

Creating new markets



In markets where the understanding of insurance and purchasing power are limited, insurers have recognised a need to fundamentally change their approach. As such they are developing products that properly respond to the risks faced and build trust in the value of insurance as part of a risk mitigation approach. Given that most insureds will not make a claim from one policy year to the next, what services can insurers offer that will build loyalty and offer value to first time and cash-strapped customers? Equally, how can insurers ensure that the cover they offer is properly tailored to customers’ needs? Much of the answer comes through a new approach to the way in which insurers construct their value chain at every step: from product build to partnership development and service delivery through to customer management and policy and claims management.

Against this backdrop it is not surprising that from just seven in 2005, there are now over 60 global insurance carriers active in the inclusive insurance space including AIG, Allianz, AXA, MetLife and Zurich. 6 There are also new market participants, with insurtech start-ups enhancing client contact and risk analysis, and new technical experts in the field. Microensure and BIMA mobile are both leading the way, informing product development and transforming interactions with prospective policyholders. In addition, there are distribution partnerships forming between carriers and local microfinance institutions (MFIs), retailers, mobile network operators, postal operators, agricultural cooperatives, and commercial banks that are helping roll out insurance to new markets. Commenting on the growing momentum, Denis Duverne, Chairman of the Board of Directors at AXA and incoming Chairman of the IDF commented: “We are creating a market, not entering an existing one in a different way.”


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