Micro Insurance Conference 2015

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Hilary Hall
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1 Micro Insurance Conference 2015 Gilles Renouil Director, 1

2 Why focus on women? Women account for the majority of the poor and the unbanked worldwide 60% of the working poor earning less than US$1 a day are women (ILO, 2005) FINDEX 2014 data shows that 54% of adults in the poorest 40% households within dev. economies remain unbanked. The gender gap remains at 9% in dev. economies. Engaging women is key to advancement of families and societies Women tend to invest more of their income into the health, education and well-being of their families (McKinsey) and to sustained economic growth By 2030, the insurance industry is expected to earn up to $1.7 trillion from women alone - with almost half coming from only 10 emerging economies (She4Shield IFC) The global economy has missed out on 27% of GDP growth per capita due to gender gap in the labor market (IMF, Sept 2013) We are missing 12 trillion extra GDP growth by not achieving gender parity in a best in region scenario (McKensey, Sept 2015) If the credit gap for women-owned SMEs is closed by 2020, by 2030 incomes per capita could be on average 12% higher across the BRICs and next 11 countries (Goldman Sachs, March 2014) 2

Women focus on health and long term goals Health Death Property Job loss others Risk management needs prioritized by the poor in 11 countries Poor Health/Illness Childbirth Death of

(Malawi) Health Life Credit-life Savings-linked Asset-protection 0 2 4 6 8 10 Source: Microinsurance center Source: Women s World Banking research Our research show that low-income

3 Women focus on health and long term goals Health Death Property Job loss others Risk management needs prioritized by the poor in 11 countries Poor Health/Illness Childbirth Death of husband Property Loss/Business interruption Divorce 1st priority Domestic Violence 2nd priority Old Age 3rd priority Death Asia (Indonesia) Caribbean/LA (Dominican Rep) Africa (Malawi) Health Life Credit-life Savings-linked Asset-protection Source: Microinsurance center Source: Women s World Banking research Our research show that low-income women are most concerned about health and education, demonstrating their role as the caregiver in the family To be meaningful, a product must address health, family needs and long-term goals 3

Understanding Women s Financial Needs Gender research highlighted women s roles in the low-income populations household, including being the savers and caregivers This led us to research and develop

4 Understanding Women s Financial Needs Gender research highlighted women s roles in the low-income populations household, including being the savers and caregivers This led us to research and develop women s savings and insurance products We also learned that women s asset building goals are for the benefit of their families When we studied savings, we learned that health is a major area of women s savings and also coincides with their role as caregivers This led us to research and develop microhealth insurance products for women We also found that women need health insurance not only for their children, but for maternal health issues Gender research also made us aware that women in certain contexts indicators face mobility constraints and cannot easily access bank branches This led us to research and develop ways to use technology to deliver products to women We also learned that women value confidentiality and convenience 4

5 What is الرعاية (Ri aya) Caregiver? Caregiver is a hospital cash product that pays a fixed per diem amount Representing women s roles as the caregivers of their families Key customer insights Hospitalization due to delivery is the event that matters most to women Women prioritize the health of their family over their own health The family policy cannot exceed 5JD ($7) per month Product Design Benefit at 15JD ($21.12) per day for up to 30 days, with max of 48 days in policy period (increased from 10JD) No limitations for pregnancy coverage (original product had limitations) No exclusions (for pre-existing conditions) Premium at 1JD ($1.40) per month Mandatory enrollment for borrower only Voluntary coverage for spouse & full family added Processes Simple claims form submitted with admission/discharge form to MFW branch In-house claims processing by MFW for < 6 nights hospital stay client receives payout faster 5

6 Current Caregiver implementation landscape Country backgrounds Jordan Egypt Morocco Uganda India Total population (2013)* 7.2m 82m 33m 37.6m 1,252m GNI/capita (PPP $ 2013)* Life birth* 72/76 69/74 69/73 57/61 65/68 Median age (2015) Average family size (U/R) ** (2013) 4.1/ / Nb of hospital bed per 1000 (2012)*** Name of institution MfW Lead Al Amana FTB Ujjivan Established Year joining network # active clients 115, , , , m (2015) % women clients 97% 87% 45% 60% 99.5% Total employees , ,786 (2015) Insurance Partner JIC ELTC Saham Assistance UAP n/a Product Name Ri aya Afitna Clients (T=target) 100,000 + families (T) Hemeya Tayssir Al Amana 156,000 (T) 300,000 p. 700,000 lives TrustCare TBD 20,000 (T) tbd Sources at Nov 1 st 2015: * *** ** Uganda Household census Report 2014 The world fact book 6

7 What does it take to reach low-income women? Process model It is not enough to simply create a financial product; clients must also know how to use it. Market understanding Product design Data / technical pricing Client access / distribution Risk bearing capacity Regulatory Social impact metrics Investment for replication / scaling With which partners to team up? 7

8 What does it take to reach low-income women? Product development model Product Design Marketing and Client Education Operating Model Premium Benefits Eligibility and Access Insurance Partner Product Marketing Client education Brand positioning Policies and Procedures Capacity building IT/ MIS Financials Target Group and Market assessment Institutional assessment 8

Our insurance vision With micro-insurance, low-income women can mitigate financial distress caused by unexpected events affecting their family s health.

9 Our insurance vision With micro-insurance, low-income women can mitigate financial distress caused by unexpected events affecting their family s health. It can protect the first layer of assets they have created as they move out of poverty. We believe that Insurance products can be designed in a way that creates meaningful value to clients and sustainable solutions to insurers. 9

10 Contact Gilles Renouil Director, Microinsurance 122 East 42nd Street, 42nd Floor, New York, NY Tel Skype. gillesrenouil Follow facebook.com/womensworldbanking 10

Micro-insurance: A Business Case. 30 May 2016

Micro-insurance: A Business Case 30 May 2016 1 Who We Are Global Non-profit Women s World Banking is the global nonprofit devoted to giving more low-income women access to the financial tools and resources