Andrea KEENAN
Senior Managing Director - Industry Relations, A.M.Best USA
Vice Chair, Microinsurance Network

XPRIMM: What is the role the Microinsurance Network plays in the global insurance environment?
Andrea KEENAN:
The MicroInsurance Network is a multistakeholder network that provides for a forum for sharing innovations, ideas and concerns in the Microinsurance space.  Through networking events, seminars, webinars and publications we help to inform the general public on microinsurance but to also enable communication among various practitioners who wouldn't otherwise have contact.  Since microinsurance is a global priority, the MiN does an excellent job of centralizing knowledge and sharing.

XPRIMM: Microinsurance has mostly been seen by the insurance community as a solution for developing countries. How can this model be tailored for other regions of the world, e.g. Eastern Europe.
A.K.:
Microinsurance is certainly more of a priority in developing countries, where a larger percent of the population is in the target consumer group of microinsurance.  However, "reverse innovation" can occur here, where lessons learned in the lower-income environments can be applied farther upmarket. Or, similar to Latin America, "mass insurance" can be offered which includes polices that are targeted at several different income groups.

XPRIMM: For the sake of clarity - how would you define the relationship between microinsurance and inclusive insurance?
A.K.:
There are many definitions out there on the goals and design of what can be considered "microinsurance" and I would hesitate to give false precision to my own perception.  So, in general I'd say that microinsurance and inclusive insurance are, in most respects, very similar concepts.  And as a group, the MicroInsurance Network focuses on the increase of financial inclusion through offering of insurance products.  

XPRIMM: What benefits are to be expected from implementing this model and what are the main challenges in doing so?
A.K.:
Microinsurance helps with financial education, family planning, development of small enterprises and maintenance of health, and the products are typically designed to address the specific needs of any given population.  A virtuous cycle develops as this produces income smoothing, larger planning horizons and the development of financial wellbeing.  It is challenging because, to be affordable, scale must be achieved. Therefore distribution models often require partnerships or other creative solutions that are not easily achieved when operating margins are so small.

XPRIMM: How do you see the relationship between social security and microinsurance, considering that in the regions where microinsurance has already been successfully implemented the public sector can not always raise to the expectations of those in need (while in example, in Eastern Europe, social security systems are in place).
A.K.:
Social security does not always address all the needs of the working poor. Microinsurance products can enable the owner of a small business to take on additional labor, experiment with more profitable crops or create efficiencies with new equipment. It is intended to allow an individual, family or company to plan into the future.

Related articles

photodune-3834701-laughing-girl-xs

Nicola RAUTMANNMarket Executive Austria & CEE, Swiss ReChristian ENGELNMarket Head Russia & CIS, Swiss Re

We currently expect the immediate impact of digitalization to be on sales, with an increased ability to reach clients and offer cross-selling of products.  Data could be pre-filled, which is likely to increase sales conversions. The full benefits of digitalization however will depend on the extent to which data owners are able to make use of their data, including sharing it with other parties.

2017-07-12
photodune-3834701-laughing-girl-xs

Oleg HANIN, Chairman of the Board, KOMMESK-OMIR

One of the most discussed subjects in our market, in 2016 was the transfer of the road accident claims settlement activity from the independent evaluators to the insurance companies. Despite the surge in negative expectations, the measure resulted in an effective direct, non-intermediated interaction between insurers and their clients which led to the growing customer satisfaction with regard to the claims payment. In KOMMESK-OMIR case, in 2016, the level of satisfaction with the claims payments reached to 91%, while the quality of the settlement of losses was 90%.

2017-07-06
photodune-3834701-laughing-girl-xs

Dr. Vahan AVETISYANExecutive Director of the Armenian MIB

We applied for membership to the Green Card international insurance system in the beginning of 2016 and are currently working in this direction. We have not yet summarized the results of the analysis of Green Card contracts' tariffs, but I do not see any bases for significant change.

2017-06-22
photodune-3834701-laughing-girl-xs

NATIONAL BANK OF SERBIAInsurance Supervision Department

There is a lot of catchup potential of the Serbian insurance market, having in mind the level of its development compared the EU average. We can expect to see a continuation of positive premium developments coupled by a healthy increase of technical provisions. This should translate into sufficient capital adequacy and a continuation of positive trends in profitability, provided that cost pressures are kept in check.

2017-06-15
photodune-3834701-laughing-girl-xs

Vyacheslav CHERNYAKHOVSKYChairman of the CommitteeUkrainian Society of Financial Analysts

There is a tendency to withdraw from insurance business, both on the foreign investors side and on domestic owned companies. In case of the national companies the trend  is more connected with obvious or provoked bankruptcies, while for foreign investors turning off Ukrainian business was caused by the high level of sovereign risk, low rates of economic recovery, insignificant (or even negative) return on capital, etc.

2017-06-08
photodune-3834701-laughing-girl-xs

Fadi AbuNahlGroup Chief Executive Officer & DirectorTRUST Re

Slowing economic growth, continued pressure on pricing, emerging risks (e.g. Cyber hacking) and regulatory changes such as Solvency II in Europe, C-ROSS in China, IRDA in India, and new South African regulations are some of the main challenges we face. Understanding the challenges of reinsurance activity in the CEE also means understanding what stakeholders perceive, what they want, and meeting these expectations. 

2017-05-18
photodune-3834701-laughing-girl-xs

Emmanuil MKRTCHYANGeneral DirectorArmInfo News Agency

The supervisory authority pays attention to the process of automation, digitizing, the creation of databases and on-line services in order to improve the quality of customer service and, last but not least the reduction of the level of fraud not only among unscrupulous customers, but also in the case of insurance agents. A similar database has already been created for the MTPL segment and it will be useful for insurers to promote the voluntary types of insurance.

2017-05-11
photodune-3834701-laughing-girl-xs

Ervin KOCIExecutive General DirectorAlbanian FSA

We expect that 2017 will be a better year towards the performance and expansion of the insurance market, the increasing of transparency and trust of the consumers, the fostering and diversification of insurance products, as well as towards the strengthening of inter-institutional cooperation, to promote exchange of experiences in terms of the regulation and stabilization of the market.

2017-05-04

ON THE MOVE

TOP EVENT

VIDEO: GIF 2017, LONDON: HRH The Prince of Wales welcome address

"Insurers have to play an important part not only in managing current risks, but also in modelling the future by contributing to a better understanding of risks, to closing the insurance gap and setting an example of responsible investment policy," HRH The Prince of Wales said in his welcome address at GIF 2017.

20.07.2017

See all