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

Ukraine: Swiss investor VIATRANS bought 22% of local insurer PERSHA

Swiss investor VIATRANS became one of the shareholders of PERSHA Ukraine, a non-life insurer, with 22% of the shares (132,000 shares). Moreover, the Ukrainian Commission for State Regulation of the Financial Markets has approved the acquisition. VIATRANS has showed its interest for the domestic insurer since March, 2016.

2016-11-10

UKRAINE: AEGON sells its unit and exits the market

Dutch insurer AEGON announced that it will exit the Ukrainian market after less than four years, by selling 100% of AEGON Life Ukraine to local insurance firm TAS Group. The parties have agreed not to disclose the terms and conditions of the transaction.

2016-09-29

UKRAINE: The financial regulator approved the acquisition HDI Strakhuvannya by EIG

The Ukrainian Commission for State Regulation of the Financial Markets has approved the acquisition of HDI Strakhuvannya by Bulgaria's EUROINS Insurance Group (EIG), a subsidiary of financial holding EUROHOLD. The deal in Ukraine comes after EIG has already acquired HDI Zastrahovane - the Bulgarian business of the Hannover based insurer TALANX International.

2016-08-04

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