Ahmand amoudi microfund for women pioneering wwb caregiver

Caregiver Microinsurance Program – Ri’aya

Pioneering WWB Caregiver

Feb. 28, 2013

Microfund for WomenAmman, Jordan

www.microfund.org.jo

Contentso Microfund for Women – Who We Areo Program Backgroundo Product Concepto Caregiver Development – key stepso Training and Awareness o Program implementation processo Product Evolutiono Client testimonialso Experience and resultso Challengeso Lessons Learnto Key messages

• Private, non profit microfinance institution•MFW was the first microfinance program in Jordan

•Jordan Quick Facts Jordan population: 6.3 millionFemale percentage: 49.3 % GDP/Capita: US$5,900

1994Save the Children launches Jordan’s first Group Guaranteed Lending Program

1996The program was registered as a local NGO, the Jordanian Women’s Development Society

1999Microfund for Women is registered as a non-profit limited liability company

2002MFW achieved full financial sustainability

2006MFW celebrated its 10-year anniversary and reached the 25,000-active loan mark

MFW - Who We Are

Indicators are as of January, 2013

No. of Branches 44

No. of Staff 409 (75% ♀)

No. of Loan officer 232 (80% )♀

No. of Active clients 81,593

Portfolio (In millions) 35.8 US$

MFW – The Hand that reaches…..Services January, 2013

Financial Services•Credit group & Individual loans

Financial services Non Credit•Microinsurance

Non- Financial services

•Capacity Building & Training•Market Linkages•Social Services•Rewards & Benefits•College Scholarships

No. of Insured Clients-Himaya (Credit life) 80,406

No. of Insured Spouses 63,520

No. of insured Ri’aya(Caregiver)

72,848


Program Background

Needs ResearchIn-depth gender research

Majority not insured. Use public facilities

Use savings or borrow to pay


Program Background

Why MFIs & Microinsurance ?

In April 2009 MFW/WWB applied for an ILO grant to launch an insurance product that would enable our clients to better cope with financial burdens associated with medical emergencies

Risk management tool to reduce the vulnerability of lower income clientsImprove the ability of clients to repay their loansHelp MFIs improve retention and attract new clientsContributes to MFI’s Commercial and Social agenda


Product Concept

Risk• Health risks & related

financial losses• Women (caregivers &

breadwinner) suffer double Impact

• A solution is needed to protect active women against associated financial shock

Solution• Caregiver policy helps in

covering incidental expenses & part of lost income

• Policy pays fixed amount for each night stayed in hospital

• Not intended to cover health care cost


Key steps in product development

Product Design

Term and Pricing

Negotiation

Administrative Process and MIS

Marketing & Training

Pilot Launch and Rollout

Caregiver


Training and Awareness

Training in branch with field staff


Training and Awareness

A Senior Loan Officer explains product features to clients

Clients are automatically covered when they receive a new loan


Implementation Process

Detailed Preparation

Pilot Launch

Pilot Review

Commence Roll Out

Fully Operitonealise

Terms modified after first annual review• Revised pricing• Revised policy wording• Profit sharing• In-house claim processing• Prepare to offer family coverage (voluntary)


Product Evolution

Initial Product Shape

• Cost: 1.55 US$ per month• Benefit: 14 US$ per night• Max Benefit: 48 nights/loan

Term• Max per claim: 30 nights• Enrollment: Automatic with

loan• Claim: Simple form +

Admission/discharge form• Exclusions: Minimal• Maternity benefit limited

After 1st annual review

• Cost: 1.4 US$ per month• Benefit: 21 US$ per night• Max Benefit: 48 nights/year• In house claim processing up

to 6 nights• Exclusions: (Almost non)• Maternity is considered as any

other hospitalization w/o limitation


Client Testimonials

“This kind of insurance really gives you a peace of mind.”

-Naela Hamdan (left) is the first beneficiary of Ri’aya. She was admitted to hospital with appendicitis and was forced to close her business for 3 days.

“I have invested the money back into my business and bought a blood sugar meter.”

-Bahira Aquilan (center) had diabetes prior to being admitted to hospital, and has received US$438 in claims.

Bahira Aquilan (center) receives her first cheque in an MFW branch

Naela Hamdan’s (left) whole family benefitted from her payout

Experience and Results

Public74%

Military18% Private

8%

Hospital Type

Others46%

Diseases of the genitourinary system

6%

Diseases of the circulatory system

6%

Child birth and Postpartam conditions

42%

Hospitalization reason

6 nights or less87%

More than 6 nights13%

In house processing

Experience and ResultsKPIs monitoredNumber of Insured

Number of Claims

Number of rejected loans

Expense Ratio

Claims Ratio

Coverage Ratio

Claims Frequency

Hospital Stay Length

Claim Processing Duration

Claim Rejection Ratio2010.04

2010.06

2010.08

2010.10

2010.12

2011.02

2011.04

2011.06

2011.08

2011.10

2011.12

2012.02

2012.04

2012.06

2012.08

2012.10

2012.120.0

1.0

2.0

3.0

4.0

5.0

6.0

Average hospital Stay

Hosp

ital n

ight

s

Experience and Results

MFI

Client

Insurer

Win – Win - WinInsurer: oAccess to a concentration of clients (low – income persons)oInfrastructure w/ community presenceoExisting financial transactionsoDelivery chanel with trusted agents in the target market

MFIoRisk mitigation for its clientsoAdditional source of revenueoUnique benefit – attract/retain clients

ClientoAccess to affordable insuranceoProtection from unexpected eventsoService by a trusted agent/institutionoStabilize finances


Challenges

Client understanding of basic insurance concept

Managing potential pushback to mandatory products

Minimizing and catching fraudulent claims

Ensuring staff are adequately trained and deliver constant message


Lessons Learnt

Preparation• Research your clients needs; we know our clients but their health needs

and behaviour are unique• Build a product around these needs, no one size fits all• Engage the field staff at all levels of the program development and

implementation• Thoroughly plan before going to Pilot

Running a Pilot• Set up a pilot protocol; helps engender clear goals, objectives and

indicators• Monitor performance during the pilot; operational, financial, claims• Collect feedback; from clients, claimants, field staff. • React to that feedback


Lessons Learnt – Cont.

Choosing Insurance Partner• Local vs. International • Flexible (micro insurance vs. classical) /sensitive to micro client segment• Constant policy review

Product Fit• Hospital cash is a good first step for a health insurance offering and a base to

work out of in the future

Moving Beyond a Pilot• Rolling out the program requires time and commitment but you are not

reinventing the wheel each time

The Unexpected • Committed staff to handle issues as they arise and close connection to the field• Keep the main objective of the program in mind; delivering insurance to our

clients in a simple manner


Key messages

Develop the product for the right reason. (to serve your client)

Use pilot program to validate the product

Keep a close eye on your indicators Keep it simple

Thank you.

Documents

Ahmand amoudi microfund for women pioneering wwb caregiver