Supporting Market Development: The Industry’s
Perspective
Arman Oza
National Insurance VimoSEWA Cooperative ltd. India
Microinsurance in Asia and Oceania Conference
Learning from the Landscape
Manila, Philippines
July 3, 2014
1 6 1
23 21
Life Non-life Reinsurance
Public Sector Private Sector
Fig. 2: No. of Insurers
34.8
5.8
13.1
4.7
0
10
20
30
40
50
60
Life Non-life
Public Sector Private Sector
Fig. 3: Gross Premium 2012-13 (USD Billion)
Brazil
Germany
South Africa
Unites States
China
South Korea
Thailand
India
0
2
4
6
8
10
12
14
16
Fig. 1: Insurance Penetration & Density
Indian Insurance Industry – A Snapshot
Source: Annual Report 2012-13, IRDA 2
-10
0
10
20
30
40
50
2002-03 2005-06 2008-09 2011-12
Life Non-life
Fig. 4: Premium Growth (%)
The Changing Face of Microinsurance
3
Individ
ual
Instt./Govt. co-
contribution
Partially
Subsidised
Fully Govt.
Subsidised
Individual
Semi-
formal
Instt.
Insurer
Govt.
CBO
Community
R
I
S
K
C
A
R
R
I
E
R
RISK
FINANCIER
Informal
Insurance
Social Security
Fig. 5: Conventional Structure
Microinsurance
Individ
ual
Instt./Govt.
co-
contribution
Partially
Subsidised
Fully Govt.
Subsidised
Individual
Semi-
formal
Instt.
Insurer
Govt.
CBO
Community
R
I
S
K
C
A
R
R
I
E
R
RISK
FINANCIER
Informal Insurance
Social
Security
Fig. 6: The New Paradigm
Microinsurance Social
Micro
insurance
Current Status of Microinsurance in India
4
• Total Coverage – 422.11 mn • Social MI coverage 311 mn • 31% growth in coverage • 49% growth in premium • 69.6% - India’s share in Asian growth
Rural & Social Sector Obligation
Microinsurance Products
Mutuals
Social Microinsurance
All figures drawn from The Landscape of Microinsurance in Asia and Oceania
Microinsurance Models
5
Subsidized Model
Voluntary Model
Compulsory Model
Governments
Insurers Insurers Mutuals/ Insurers
Mutuals / CBOs / NGOs
MFIs/ Banks
Absent
State Exchequer
Insured Members
Insured Members
MFIs / Banks
Mutuals / CBOs / NGOs
Driver
Risk Carrier
Distributor
Financier
Microinsurance Models - Features
6
Subsidized Model
Voluntary Model
Compulsory Model
Scale
Client Value
Client Value
Scale, Sustainability
Client Value
Scale, Sustainability
• Small manufacturers and large distributors. • Hybrid Models • Holistic effort on consumer education. • Common platforms for innovation. • Impact Investing.
Strengths
Limitations
Market, Policy &
Regulatory Interventions
Client Value & Utilization
Scale and Sustainability
7
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