Three critical success factors for inclusive insurance
CRITICAL SUCCESS FACTOR 3: VALUE
Insurance can be part of a package of mobile health advice services. For example, Hello Doctor’s Sema Doc in Kenya gives subscribers daily health tips, with 24/7 access to registered doctors and cash back for hospitalisation. Other services with an insurance element have also been designed to offer regular weather updates and agronomic advice to small-hold farmers or business advice to microenterprises. Inclusive insurance is often offered as part of a value package rather than the lead element. Financial compensation still key Insurance or insurance-led products still have their place, however, and parametric or index insurance is proving its worth in many markets by offering rapid access to funds following disasters. At the macro level, index-based insurance payments to sovereigns may confer a benefit upon the least protected. In the aftermath of Hurricane Matthew, the parametric catastrophe insurance facility CCRIF SPC paid out USD 29.2m to member countries (Barbados, Haiti, Saint Lucia, and St. Vincent and the Grenadines) 14 days after the hurricane.
For inclusive insurance to take off, customers need to perceive its value during every policy period, irrespective of whether a claim is made. This illustrates the wider value-add of insurance and its related risk- mitigation and management strategies. ‘Additional’ services create value and build demand In some cases, the risk transfer mechanism will be one part of a bundle of services offered around the particular risk. Health insurance might go beyond covering the treatment of illness to targeted health advice or access to discounts in hospitals and pharmacies. Such loss prevention or advice-based offerings add tangible value for customers, but could also mitigate the risk itself and minimise the impact of an incident.
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