Microinsurance The Jordanian Experience Mazen A. Nimri FCII FLMI Deputy GM / Life and Medical Dep....

MicroinsuranceThe Jordanian Experience

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Increasing Resilience through Hospitalization Coverage:Case Studies from the Middle East and Africa

Jordan • Located in the Heart of the Middle

East

• Small country , Big ambitions

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

• Oldest Insurance Company in Jordan 1951

• Composite Insurer (Life and Non-life)

• Highest paid up capital in Jordan JD 30 million (USD 42 million)

• Headquartered in Jordan with Regional Branches in UAE and Kuwait

• 10% Ownership by Munich Re

• Technical team of experts

• Rated by AM Best (FSR B++/ICR bbb+)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

5.1%5.9%

7.9%8.9%

11.7%

14.3%

17.6%

19.8%

21.6%

23.9%24.5% 25.1%

Growth of Market ShareJIC Life

MicroinsuranceStrategic Partnership with MFW

• Strategic Partnership with MFW– Trust

– Transparency

– Commitment

– Utmost good faith

• Risk Transfer Mechanism– JIC covers the loan plus an additional amount in case of

death/disability

– Sustainability of the MFW operations

• Social Participation– Commitment to elevating social standards

• Economic Support– Support the community and economy

Microinsurance

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

• New Market Segment Penetration– Non-conventional target

market

• New Experience– Wealth of knowledge

– New Products

– Different Procedures

• Profits / Pricing?– High Loss ratios

– Price adjustments based on experience

– Benefits enhancements (Spouse Insurance)

Microinsurance

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

• Sponsorships• Very Important for

spreading insurance awareness

• Radio + TV• Ads• Brochures and Flyers

• Very minimal procedures– No Underwriting – experience driven

– Efficient Premium collections

– Speedy Claims Settlements

– Easy Accounts reconciliation

• Claims Authority Transfer to MFW– Efficiency

– Accuracy

– Popper follow up

– Valued Partnership - Trust

Procedures

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Product Development

Term Life(Life of

borrower)

Pay Loan Amount

Pay Additional Amount to

Beneficiaries

Term Life(Life of SPOUSE)

Pay a Lump Sum Amount to

Borrower

Riaya“Care Giver”

Hospital Cash(borrower)

Pay Lump Sum Amount per night stay at

Hospital

Hospital Cash(Dependants- Spouse and Children)

Pay Lump Sum Amount per night stay at

Hospital

Riaya

No Underwriting or pre-medical exams

Up to 48 nights

Affordable Premium

Minimal Exclusions

$21 / night spent

@ Hospital

Riaya

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Develop the product for the right reason

(serving your client)

Use pilot program to validate the product

Keep a close eye on your indicators Keep it simple

Riaya

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Riaya

Riaya

2010 2011 2012 2013 2014 20150

20,000

40,000

60,000

80,000

100,000

120,000

5,181

47,356

78,131

94,959104,166

113,031

Number of Active Clients

Riaya

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

37.15%

11.38%

7.82%

7.81%

7.51%

5.61%

5.23%

4.18%

4.06%

3.97%

3.92% 0.76% 0.60% Delivery / Gyno

Internal

Cardiac

General (Bones, Muscle, ….)

Pulmonary / Allergy

Cancer

Urinary and Genital

Blood

Endocrine / Diabites

Accidents

Dermal

Optical/ Dental

ENT

Riaya / Admission Reasons

Private8%

Military20%

Public72%

Type of hospitalRiaya

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Average Claim frequency

JIC / MFW Ministry of health

7.54% 13.9%

Fraud

less than 2%

Average Hospital stay

JIC / MFW Ministry of health

3.6 2.3

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Premium

Monthly $1 -$1.5

WIN WIN WIN

Insurer MFI

Client

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

Thank You

Mazen A. Nimri FCII FLMIDeputy GM / Life and Medical Dep.

mnimri@jicjo.com