Three critical success factors for inclusive insurance
CRITICAL SUCCESS FACTOR 1: TRUST
you are an Indian construction worker in Dubai or Sharjah and you send money back home through a money exchange house. You give cash at one end and it always arrives to your family on the same day, which develops trust.” Frequent contact Digital technology can help build trust by maintaining a high level of contact between insurers and customers. So-called frictionless encounters provide advice and guidance and can support product understanding, assisting financial literacy and helping to build a sense of connection and value. In Indonesia Allianz has been applying automated telephone messages using a fictional character called Ms Ali to automate post-sales calls and educate customers about their microinsurance product. 10 Similarly, chatbots can carry out direct conversations and provide a useful and cost-effective way of fostering client engagement. 11 FINO PayTech is an Indian banking correspondent agency working with agents to sell insurance and other financial services. It has developed a cost-effective mobile-based module to deliver ongoing support through updates on product and policy changes and answering frequently asked questions. FINO tracks whether agents have downloaded the updates and will follow up with those who do not. Once downloaded, the updates remain available
Trust cuts both ways. New inclusive insurance customers are often unable or unwilling to share information about the risks they face in a way that insurers are used to. They may have no wage or a formal address, or any proof of their identity. This means insurers need to work on an inclusive basis, recognising that it is not always possible to fully investigate the specific risks associated with individual policyholders and doing it at scale so that the cost of the few can be subsumed by the many. At the same time, would-be consumers need to trust the insurer and their distributor. Trust can be built through a track record of claims settlement by the insurer or trusted service provision by its local partner. As Quentin Gisserot, Project Manager - AXA Emerging Customers says: “A successful distribution partner needs to be trusted by the end-customer and that comes from the number of successful interactions the customer had with them. That’s one of the key reasons for working with a mobile network operator: for example in Ghana when you’re poor not many services work correctly, but topping up your phone always works and that works in the same way irrespective of whether you are poor or rich. Or if
10 https://www.allianz.com/v_1490860084000/media/press/document/Allianz_SE_-_Emerging_Consumers_ Report_2016FY_2.4_-_20170403_-_MH.pdf 11 https://www.microfinancegateway.org/library/five-insuretech-trends-and-what-they-mean-microinsurance
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