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ForewordIn 2015, the MicroInsurance Centre had the honor of leading, contributing to, and participating in cutting edge microinsurance activities across the globe. From designing a new product in Belize, to analyzing consumer purchasing habits in Colombia, to conducting regional landscape studies in Latin America and the Caribbean (LAC) and Africa, to developing a microinsurance regulatory roadmap in Egypt, we have been witness to the innovation, growth, and awareness that is propelling the industry forward.
Microinsurance reported several achievements in 2015. Lives covered in the African region grew by 30% since 2011, and LAC has shown an evolution of products and shifts that reflect a maturing market. Policymakers and regulators of the Asia-Pacific Economic Cooperation (APEC) came together to incorporate microinsurance into their disaster risk management and resilience building programs. Technology is becoming ever more pivotal as programs use mobile platforms to reach millions of clients or even pilot the use of drones for agricultural claims processes. The momentum behind innovative microinsurance solutions that create a business case for insurers and value for clients is only growing stronger. We at the MicroInsurance Centre are excited to embark upon new projects in 2016 with clients that are working tirelessly to improve the lives of low-income people in their economies and jurisdictions.
We wish to sincerely thank each of our valued clients, and those yet to come, for the opportunity to share our knowledge and learn from each of you. We are passionate about continuing to work with you as we make progress towards our goal of getting SUAVE microinsurance products into the hands of three billion low-income people across the globe.
Sincerely,
Michael J. McCordPresidentMicroInsurance Centre, LLCwww.microinsurancecentre.org
Michael J. McCord President
MicroInsurance Centre
Contents
Who We Are
Our Services
Guiding Philosophies
Organization and Team
2015 Projects, Major Publications and Advocacy Events
Key Lessons Learned
Moving Forward in 2016
Who We AreThe MicroInsurance Centre (MIC) is a consulting firm dedicated to generating access to valuable microinsurance products to 3 billion low-income people across the globe. This is accomplished by working with regulated insurers and appropriate delivery channels who can efficiently provide simple, market-responsive microinsurance products. Our clients include commercial insurers, foundations, bi- and multi- lateral development agencies, regulators, NGOs and others. These organizations work with us to ensure the best potential for success with their microinsurance activities.
Our work with clients includes various aspects of microinsurance, from product development and training to research and advocacy. Our team has implemented microinsurance activities in over 70 countries during the last twenty years.
Mission: To get SUAVE (simple, understood, accessible, valuable, and efficient) microinsurance products in the hands of 3 billion people across the globe.
Our Services
Product Development
• We work with organizations all aroundthe globe assisting them through someor all of the product developmentprocess to ensure that products areresponsible, professional, legal,prudent, marketable and profitable.The product development processincludes process planning andassessment, supply and demand sideresearch, stakeholder workshops andtrainings, partner selection, productdesign, partnership development andmanagement, pilot testing, roll out,review and assessment and continuedmonitoring to ensure the viability andprofitability of the product.
Research
• The MicroInsurance Centre hasproduced a number of informativeresearch studies including: the MILKseries of client math studies, RCT(randomized control trial) studies, andbusiness case studies, as well asinstitutional case studies, landscapemapping, pre-feasibility and feasibilitystudies on various issues within theindustry ranging from regulatoryframework to supply and demand. Wehave worked with many differentorganizations and in a wide variety ofcountries. Our research has beenpublished in various academicpublications and industry periodicals.
Advocacy
• Our team leads training workshops atvarious levels, speaks in internationaland national forums and activelyparticipates in, and often leads, variousworking groups on keytopics in microinsurance. With goodworking relationships amongnumerous insurance supervisors andregulators around the world, wefacilitate dialog about microinsurancepolicy between insurers and regulatorsto promote the best ideas andpractices. Advocacy and education arealways built into our projects as part ofour mission to develop partnerships toinsure the world’s poor.
One of the MicroInsurance Centre’s core competencies is microinsurance product development (for which we wrote the book). Many of our various clients have risen to be internationally recognized as successful innovators in microinsurance including: Pioneer Insurance (Philippines), Star Microinsurance (Ghana), MicroFund for Women (Jordan), Banco Compartamos (Mexico) and many others. Our clients and their successes illustrate the value that our expert team brings to a microinsurance project.
“Through the mentorship program with the MIC, Star Micro has benefited tremendously from MIC product design expertise and the identification of appropriate distribution channels to distribute these products. This expertise has directly contributed to the growth of Star Micro since 2008”
Afua Owusu, CEO Star Microinsurance Services Ltd Accra, Ghana
At the MIC, we pride ourselves on producing diligent, accurate, and detail-oriented microinsurance research.Due to the MIC’s outstanding reputation for the high caliber of work that we do for our clients and projects, our results and findings are often internationally recognized and cited in microinsurance and other publications across the globe. Our research areas include, but are not limited to:
• pre-feasibility studies
• feasibility studies• landscape studies• business case
development• client math• regulatory
frameworks and roadmaps
• supply and demand • concept papers• evaluations• impact assessments• others – tailored to
your specific needs
In addition to incorporating advocacyand education into all of our projects, the MicroInsurance Centre team frequently presents at conferences and delivers workshops and trainings worldwide.
“Assisting others to reach the magical balance of profitability and client value is a core objective of the MicroInsurance Centre and our team. If we are going to see our objective of getting good products to 3 billion people, we have an obligation to teach, speak, share writings, and build capacity in others.”
Michael J. McCord, PresidentMicroInsurance Centre
Our Guiding Philosophies
Local capacity
SUAVE
Valuefor clients
Business Casefor providers and
distribution channels
The Magical Balance
Magical Balance
Product Evolution
Organization
The MicroInsurance Centre operates with a team of staff located at the head office in Appleton, WI, U.S. which controls the project management, accounting, and consultant involvement for all of its projects. All projects are led by Michael J. McCord, Founder and President of the MicroInsurance Centre, who remains responsible for coordinating with partners and clients and ensuring the success of the projects. The MIC office works with a network of highly experienced, expert consultants to which certain projects are distributed based on expertise, experience and demonstrated ability.
Our Team
Michael J. McCord, President, has over twenty years of experience in microinsurance, including time as the Regional Director for microfinance programs in Africa before founding the MicroInsurance Centre in 2000. He uses his considerable knowledge and experiences to enhance and enrich the knowledge of others to improve microinsurance across the globe through training, writing, guiding and mentoring, and on-the-ground field work with all parties along the microinsurance value chain. He is currently the Chair of the Microinsurance Network and Head of the Microinsurance Work stream of APEC.
Staff
Dawn White, Assistant to the President of the MicroInsurance Centre. She has over 20 years of experience owning and managing her own business, along with a decade of insurance background. She joined the MicroInsurance Centre as the Assistant to the President in December 2012. Dawn is very excited to be a part of this brilliant team and making a real difference in the lives of others.
Katie Biese, Senior Project Manager, has over eight years of international development experience, including two and half years with microfinance initiatives in Moldova and Nepal. She joined the MicroInsurance Centre in 2013 and supports the team with project management, research, coordination, and dissemination of lessons learned. Katie holds a Master’s degree in Development Management from American University.
Felipe Botero, Mass Market Insurance Specialist, joined the MicroInsurance Centre to focus on Mass Market programs and “Developing partnerships to insure the world’s poor”. Formerly, Felipe was Vice President of Global Technology and Operations at MetLife, where he spent more than 20 years in a variety of roles. At MetLife Felipe applied his insurance industry, technology and program management skills in the implementation of multiple global regulatory and compliance programs, as well as the integration of several multi-national M&A transactions. Over the past decade Felipe has worked with various international organizations focused on the development of appropriate insurance products and services for low-income people around the globe.
Mariah Mateo Sarpong, Project Associate/Communications Specialist at the MicroInsurance Centre. Mariah is passionate about working towards sustainable solutions to improve low-income people's lives, which makes her a motivated team member since April, 2012. Her developing country experience includes academic research and volunteer projects in Costa Rica, Uganda, and Sierra Leone as well as working in the microfinance sector in Ghana as a Vittana Fellow. Mariah is bilingual in English and Spanish and holds a Bachelor's degree in Anthropology, Spanish, and International Studies from Lawrence University.
Clémence Tatin-Jaleran is an independent consultant with extensive actuarial training. She holds a Master’s degree in Financial and Actuarial Sciences from the Financial and Insurance Sciences Institute in Lyon, France, and is a Fellow of the Institute of Actuaries in France. She has ten years of experience working in the insurance field, including six years in microinsurance. Additionally, she has substantial on-site product development experience and has worked with microfinance institutions (MFIs), insurers, rural banks, and other non-profit organizations in Peru, Bolivia, Mali, Egypt, Bangladesh, India, Vietnam, Indonesia and the Philippines. She is based out of Vancouver, Canada.
.
Roland Steinmann is an independent consultant whose previous experience includes six years as a reinsurance underwriter for Swiss Re and two years as a logistics consultant. Since 2006, Roland has run his own consulting business and he has acted as a consultant for the MicroInsurance Centre since 2008. He is also an active member of the MicroInsurance Network and is co-founder of the Fair Trade Insurance Initiative, which promotes innovative insurance solutions for smallholders in developing countries. In addition, Roland authored the Process Mapping for Microinsurance Operations toolkit. His work focuses on market research, product development and distribution channel development. He is based out of Zurich, Switzerland.
Eamon Kelly has over 20 years of actuarial experience in the private insurance sector in Ireland and Australia, primarily as a general insurance consultant. Eamon was also a fellow at MicroFund for Women, a Jordanian MFI, involved in every aspect of the development and implementation of a hospital cash product. His most recent work has been in the development sector, and he has acted as lead project manager and consultant to insurance initiatives in Southeast Asia, Latin America, Africa, and the MENA region. He is based out of London, United Kingdom.
Core Consultants
In addition to the staff and core consultants, the MicroInsurance Centre has the privilege of employing many expert consultants in microinsurance and other areas of the development field. These consultants are based out of various locations across the globe, and the MIC staff coordinates with them on specific projects as appropriate according to their skills and expertise.
Our Expertise Around the World
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Wisconsin, U.S.• Michael J. McCord• Dawn White• Katie Biese
Puerto Princesa, Palawan, Philippines• John Wipf
Indiana, US• Jonathan Bauchet
New York, US• Barbara Magnoni• Ellie Vladimirova
Zurich, Switzerland• Roland Steinmann
Stuttgart, Germany• Martina Wiedmaier-Pfister
Vancouver, Canada• Clémence Tatin-Jaleran
Saskatchewan, Canada• Denis Garand
New Jersey, US• Felipe Botero
Massachusetts, US• Emily Zimmerman
Basseterre, St. Kitts• Mariah Mateo Sarpong
London, UK• Andrea Camargo• Eamon Kelly
Stockholm, Sweden• Therese Sandmark
Kingston, Jamaica• Rose Marie Henry
Toronto, Canada• Tsvetanka Karagyozova
Winnipeg, Canada• Donna Swiderek
Yorkshire, UK• Richard Carpenter
2015 Project Locations
Nepal, Mongolia, Thailand, Indonesia, Philippines. Project assessment and regulatory study
México, Egypt, Brazil, Morocco, Uganda. Product design and implementation strategy
Africa. Landscape of Microinsurance in Africa
Philippines. Regulatory impact assessment.
Burkina Faso. MILK Client Math study on loan protection for maize farmers
Indonesia. MILK Client Math study on credit life product.
Ghana. Country landscape study.
Nigeria. Develop sustainable MI training curriculum.
Colombia. RCT on client purchasing habits.
Philippines. Technical assistance.
Belize. Product design and implementation.
Global. MI social performance standards.
LAC. Landscape of Microinsurance in Latin America and the Caribbean
2015 active projects
Countries included in regional landscape studies
Rwanda. Risk assessment and pricing.
Rwanda. Microinsurance training with MINECOFIN.
Global. Inclusive insurance action plan.
MENA. MI workshop at Sanabel Conference and MI plan
Global. MI session at CPCU annual meeting.
Jamaica. Regulatory roadmap for inclusive insurance
Colombia. Regulatory roadmap for inclusive insurance Global. Proportional regulation
in MI case studies.
Egypt. Facilitate development of an MI framework with EFSA
Major Publications in 2015Regulatory Impact Assessment Microinsurance Philippines
Malagardis, Antonis (GIZ RFPI Asia), Michael J. McCord (MicroInsurance Centre), Dante O. Portula (GIZ RFPI Asia), Martina Wiedmaier-Pfister (MicroInsurance Centre). Manila: GIZ RFPI Asia, November 2015.
The Landscape of Microinsurance in Africa 2015: Preliminary Briefing Note
McCord, Michael J. and Katie Biese. Luxembourg: Microinsurance Network and the Munich Re Foundation, November 2015.
MILK Brief #35: Doing the Math – Loan Protection for Maize Farmers in Burkina Faso
Magnoni, Barbara and Danielle Sobol. Appleton: MicroInsurance Centre, March 2015.
“The Global Landscape of Microinsurance”. The State of Microinsurance: The insider’s guide to understanding the sector
McCord, Michael J. and Katie Biese. Luxembourg: Microinsurance Network, July 2015
The Landscape of Microinsurance in Ghana 2015: Supply and Demand Side Report CDC Consult, MicroInsurance Centre, PromIGH. Accra: National Insurance Commission (NIC) and Deutsche Gesellscha4 fur Internationale Zusammenarbeit (GIZ) GmbH, July 2015.
The Landscape of Microinsurance in Latin America and the Caribbean – A Changing Market
McCord, Michael J. and Katie Biese. Luxembourg: Microinsurance Network and the Munich Re Foundation, September 2015
MILK Brief #36: Credit Life Insurance in Indonesia Sobol, Danielle, Barbara Magnoni and Emily Zimmerman. Appleton: MicroInsurance Centre, March 2015.
Advocacy in 2015
The MicroInsurance Centre was represented at several important international conferences and meetings in 2015. In his roles as President of the MicroInsurance Centre and Chair of the Microinsurance Network, Michael J. McCord presented on a diversity of topics including the balance between client value and profitability, the landscape of microinsurance in Africa, microinsurance within the financial inclusion framework in Honduras, and best practices and lessons learned of sustainable microinsurance market development, just to name a few. Participating in these events is a valuable exercise in knowledge sharing.
IAIS Annual Committee Meetings (9 - 11 November, 2015) Speaker/presenter –Marrakech, Morocco.
An Afternoon with GFIA - Supervisory Cooperation and Convergence (10 November, 2015) Speaker/presenter - Marrakech, Morocco
11th International Microinsurance Conference 2015: "Driving Growth and Sustainability - A Business Case for Microinsurance" (3 - 5 November) Speaker/presenter - Casablanca, Morocco.
Sanabel 2015 Conference (20 - 21 October, 2015) Speaker/presenter in workshop and panel discussion - Sharm El Sheikh, Egypt
Foro Regional de Inclusión Financiera 2015 (Regional Forum for Financial Inclusion 2015) (14 - 15 October, 2015) Speaker/presenter - Tegucigalpa, Honduras
ACLI Annual Conference 2015 (11 - 13 October, 2015) Speaker/presenter -Chicago, IL, U.S.
2015 CPCU Society Annual Meeting (3 - 6 October, 2015) Speaker/presenter -Indianapolis, Indiana, U.S.
Advocacy Events in 2015
22nd APEC Small and Medium Enterprises Ministerial Meeting (SMEMM) (21 - 25 September, 2015) Speaker/presenter – Iloilo City, Philippines
Global Seminar on Disaster Risk Financing: Towards the Development of Effective Approaches to the Financial Management of Disaster Risks (17 -18 September, 2015) Speaker/presenter - Kuala Lumpur, Malaysia
Boulder Microfinance Training (20 July - 7 August, 2015) Faculty member for course “Microinsurance: What every manager must know” – Turin, Italy
Microinsurance Network’s Annual June Member Meeting (23-24 June, 2015)Leader, coordinator, facilitator, speaker/presenter – Königstein, Germany
Regional Insurance Brokers Congress hosted by Egyptian Insurance Brokers Association (18-19 May, 2015) Speaker – Cairo, Egypt
APEC (Asia-Pacific Economic Cooperation) Disaster Risk Finance: APEC Roadmap for Resilience (29-30 April, 2015) Speaker/presenter – Bacolod City, Philippines
Hanson Wade 6th Annual Latin American Microinsurance Summit (March 2015) Speaker/presenter and workshop facilitator “New Approaches To Achieve the Magical Balance in Microinsurance: Providing Client Value While Generating Profitability” – Miami, FL, U.S.
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Crops and income diversification matter when designing Ag MIIn designing high impact agriculture products, those offering insurance should identify which crops offer farmers the most reward in terms of percentage of income and profitability and balance this with the risk of the crops. Additionally, insurance product design should take into account existing income diversification strategies and recognize that insurance coverage may incentivize farmers to reduce these strategies.
Credit life can have greater client value than what is perceivedOften perceived as a product with more value for the lender, credit life can offer substantial monetary and in-kind benefits to its clients as was seen in the case of a program in Indonesia. Credit life products can further increase their existing value through client education and assistance with claims filing. In this particular context, change in product messaging to encourage cash use in income-generating investments (as opposed to contributing to funeral expenses) and increasing the benefit for death of a spouse strengthen the client value.
There is a Business Case for MI – majority of MI providers say so!The landscapes of microinsurance in Latin America and the Caribbean (LAC) and Africa provide strong evidence that supports a business case for microinsurance in both regions. In Africa, more than 2/3 of reported products were profitable and the majority of products in LAC were as well. Many insurers in both regions are innovating and finding ways to keep admin costs, claims ratios, and commissions low but at an appropriate level to maintain value for the client. Despite all of this, there is still a great need for microinsurance providers in both regions to measure the financial performance of their MI products separately.
LAC and Africa achieve scale in different waysTo increase microinsurance coverage, the landscape identified that LAC is shifting to the mass market while Africa is increasingly utilizing mobile network operators to increase client volumes.
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Strong relationships lead to strong productsHaving a strong and committed insurance partner is critical to implementing new and valuable microinsurance products through the Partner agent model. In addition, if it is the insurer driving development, the need for a committed distribution channel to take on ownership of the microinsurance project is key. In essence, both insurer and distribution partner need to be committed and have some ownership in the program in order to ensure its success.
Follow up after a training is key to actionAfter conducting trainings or workshops, it is easy for ideas and discussed plans to be forgotten or put on hold due to busy schedules and prior work commitments. Some techniques that serve as a means of solidifying the training so that it leads to action are developing concrete implementation or action plans before leaving the event, informing senior managers of participating institutions to gain their support, and conducting post-training follow-ups with participants several months after the event.
Supervisors can implement inclusive insurance regulations in phasesDeveloping and implementing regulatory frameworks for inclusive insurance is an extensive process that can be managed in phases. Supervisors should involve the industry and – while not rushing to regulate – still focus on quick wins such as regulating a simple product, alternative distribution or lowering the regulatory burden on the industry. Supervisors should also have a medium-term strategy in place for structural challenges such as formalization, or ensuring client value and sensitization in terms of potential abuses and filling gaps in consumer awareness.
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Moving forward in 2016
The MicroInsurance Centre began 2016 with several new and exciting projects as well as the continuation and completion of previous work. Our first quarter included a microinsurance business planning workshop in Nigeria (CIFMS/GIZ), the development of two IAIS/A2ii case studies on proportional insurance regulation, and microinsurance training in Rwanda (MINECOFIN). We also continued work on developing regulatory roadmaps and frameworks in Colombia (A2ii/IADB), Jamaica (A2ii/IADB), and Egypt (JICA/EFSA), implementing a microinsurance action plan with GFIA, finalizing the Munich Re Foundation/MiN Africa landscape study, developing and implementing a work plan with APEC, and collaborating with and leading the Microinsurance Network through several significant changes.
Our focus in 2016, as always, is working with clients and partners to develop and make accessible SUAVE (simple, understood, accessible, valuable, efficient) microinsurance products.
We thank you for your continued support and interest in the MicroInsurance Centre, and we encourage you to stay connected with us through social media and our quarterly newsletter.
Thank You!
For more information on our organization and services, or for access to microinsurance resources, please visit our website:
www.MicroInsuranceCentre.org
Stay connected with the MIC! Subscribe to the MIC Quarterly Newsletter on our homepage (bottom of page)Icons created by Freepik from www.flaticon.com were used in this repot