Emerging Consumers Product Pool

Transcription

1 Emerging Consumers Product Pool Overview and assessment of Allianz products for low-income populations in developing countries Allianz SE October 2017 public

2 Introduction This Emerging Consumers product pool lists the financial services of Allianz Group that currently target low-income people in developing countries. Products launched since June 2013 which still have less than 1,000 inforce (active) people reached are not included. This initiative supports the Transparency value of our Allianz Emerging Consumers values: Allianz Emerging Consumers Values 1 Passion Quality Fairness Transparency Information on each product is presented in three sections: e.g. product pool A. Product specifications Gives a high-level explanation how the product looks like (distribution, benefits, pricing) B. Product assessment 2 Matches the product against the Allianz Emerging Consumers definition and assessment tool. C. Product brochures where available This includes 1. Knock-out criteria: Can we call this product an Emerging Consumers product?, and 2. Qualitative criteria: How well does the product fulfill our Emerging Consumers values? 2 We will update this product pool every April and October as new Emerging Consumers products are launched and existing products are modified or taken off market. We try to list products from the moment that over 1,000 inforce (active) people are reached until the last policy matures. However, there is no duty to update (see disclaimer). Contact Wen Li Tiah (Ms.) Emerging Consumers Tiah.WenLi@allianz.com.my Allianz SE Is this really the latest? See our Emerging Consumers website for the most recent reports and publications 1) To learn more about the Allianz Emerging Consumers values please see our latest Emerging Consumers business updates. 2) The product assessment shows how well the products is intended to serve low-income families in compliance with our Emerging Consumers values ( as planned ). It does not verify how products and distribution look on the ground ( as is ). Example: Allianz may have produced product brochures although for various logistical reasons they do not reach the customer. The assessment is also no indicator for actual business success. 2

3 Overview 1 Knock-out criteria: Qualitative criteria A B C new # Country Company 1 Indonesia Allianz Life 2 Indonesia Allianz Life 3 Colombia 4 Colombia 5 Colombia Allianz Colombia Allianz Colombia Allianz Colombia 6 Indonesia Allianz Life 7 Madagascar 8 India 9 Indonesia 10 Indonesia 11 Ivory Coast 12 India 13 India 14 Ivory Coast 15 India Allianz Africa Bajaj Allianz Life Allianz Life Allianz Life Allianz Africa Bajaj Allianz Life Bajaj Allianz Life Allianz Africa Bajaj Allianz General Product Name Mobile Micro Equity Term Life edutainment Family Term Life Home Business Life & Maternity Comprehensive Health Mobile Term Life Commercial offer Developing Country Low-income focus Improving lives Other benefits Customers involved SSS Life & Savings - - Credit Life Plus Term Life Funeral Insurance CSC Life & Savings BDSY Life & Savings Mobile Savings Crop Index Voluntary Customer education ) See our website for a full explanation of our assessment methodology 2) PA: Personal Accident Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success Product simplicity Low transaction costs Quality rank avg. c1-c7 Details on page

4 Overview 1 Knock-out criteria Qualitative criteria A B C # Country Company Product Name Commercial offer Developing Country Low-income focus Improving lives Other benefits Customers involved Voluntary Customer education Product simplicity Low transaction costs Quality rank avg. c1-c7 Details on page 16 India 17 Indonesia 18 Malaysia West Africa & Egypt West Africa Bajaj Allianz Life Allianz Life Allianz General 21 Burkina Allianz Africa 22 India 23 India 24 Colombia 25 India Group Term Life - - Savingslinked Life Motorcycle PA 2 Allianz Africa Credit Life - Allianz Africa Crop Index Bajaj Allianz General Bajaj Allianz General Allianz Colombia Bajaj Allianz General Savingslinked Life Cattle & Livestock PA Plus Credit Life Personal Accident Phased out products since last update April 2017 none 1) See our website for a full explanation of our assessment methodology 2) PA: Personal Accident Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 4

5 1. Indonesia: Mobile Micro Equity A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Trust Network Finance (TNF) Mobile Micro Equity Company name Allianz Life Indonesia Country Indonesia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Direct distribution 7 June sentence product description Micro-Equity program for informal entrepreneurs to formalize their business through a 4-step process: Selection, Mentoring, Formalization and Scale. In the first 3 steps, TNF gives small investments from as low as USD 75 without interest, without collateral and without fixed repayment schedule, to encourage entrepreneurs to take risks and grow their business, also allowing for failure. Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary No insurance risk covered The investment risk lies with the TNF program, in case that investees do not repay their investment in full Investees who voluntarily repay with profit sharing receive the benefit of business mentoring and of gradually increasing investments An investee who defaults is permanently excluded from the program Investments start from as low as USD 75 No interest and no administration fees are charged on investment amounts, i.e. no direct costs to customers Investees can voluntarily return their investments with profit sharing Not applicable Other comments TNF is still in experimental stage. The model is new and has not been tested before TNF is an open source business model. Replication by other organizations is welcome TNF uses mobile money only. Physical cash is not allowed TNF does not reach the minimum 1,000 members that are normally needed for inclusion in this overview. However, different from the other Emerging Consumers products, TNF does not aim for such a large membership. It has therefore been included nonetheless. Additional resources Lessons from 1 year TNF Webinar deck (May 2017) Documentary article on TNF Documentary video on TNF Operational handbook of TNF 5

6 1. Indonesia: Mobile Micro Equity B. Product Assessment 1 Product: A Trust Network Finance Commercial offer provided by Allianz Ranking 2 B Offered in developing countries C Min. 80% of people reached are from low-income segment Rationale / Comments Trust Network Finance is a for-profit business model that is currently still in testing phase Indonesia is a lower-middle-income country according to World Bank and hence grouped under developing countries At the start of the program, TNF investees all have small informal businesses and earn around USD per month, which puts them at around 40% - 60% of the Indonesian income population 1 Significant contribution to improving low-income people s lives In a survey of TNF investees, 70% of respondents stated that TNF had significantly assisted the growth of their business. 2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.) Besides investment, well performing TNF customers also receive business mentoring and legal assistance in formalizing their business. 3 End-customers involved in product development TNF was designed after focus group discussion input from micro-insurance customers. The model was pilot tested and further refined in a nano-pilot with 9 investees 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) Voluntary opt-in 5 Customer education and feedback mechanisms in place New investees receive intensive training on the TNF program, including the contractual terms and conditions and on how to set-up an e-money account. A yearly customer satisfaction survey gives possibility for feedback. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Compared to conventional micro-credit, TNF has much less restrictions and conditions, e.g. no interest, no collateral and no fixed repayment schedule. However, the overall TNF methodology needs some time to understand. 7 Strong measures to ensure low transaction costs The use of electronic money speeds up disbursement and repayment, increases transparency and reduces fraud risk. Customer contacts are mostly through SMS and calls, rather than personal visits as in conventional microfinance. However, with TNF still in experimental stage, room for further process improvement exists, e.g. on reducing overhead costs. Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 6

7 1. Indonesia: Mobile Micro Equity C. Product Brochure Page 1 of TNF customer handbook Page 4 of TNF customer handbook 7

8 2. Indonesia: Term Life edutainment (new) A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Sekoci (Lifeboat) Term Life Company name Allianz Life Indonesia Country Indonesia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) MFIs 18 October sentence product description Simple voluntary term life insurance with fixed premium, fixed sum insured and increased sum insured in case of accidental death, enhanced by weekly phone-based product and financial literacy training sessions for every customer. Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary Risk: Death of insured Benefit: Natural death: Various plans of up to IDR ,000 (~ USD 1,100) death benefit Accidental death: 5x natural death, i.e. IDR ,000 in total (~ USD 5,500) Value-Added Service: Automatic weekly phone calls on product knowledge (4 calls = 4 weeks) and financial literacy (32 calls = 32 weeks) Opt-out option available Minimum IDR /year (~ USD 1.10) Maximum IDR /year (~ USD 15) Value-added phone based training is included in premium IDR 46,000 (~ USD 3.50) Other comments A further enhanced version that exclusively relied on premium payment via emoney and gave additional airtime phone credits at each renewal was also launched but discontinued due to immaturity of emoney penetration among the target segment. Additional resources When the hero calls Interview with a Sekoci customer on her phone training experience Sekoci edutainment video (4:02) 8

9 2. Indonesia: Term Life edutainment (new) B. Product Assessment 1 Product: A Term Life edutainment Commercial offer provided by Allianz Ranking 2 B Offered in developing countries Rationale / Comments Sekoci is a fully commercial insurance product. Indonesia is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Sekoci is exclusively distributed by microfinance institutions (MFI) who focus on the low-income segment of the population. 1 Significant contribution to improving low-income people s lives Life insurance covers a significant risk of an Indoensian low-income family. Sekoci can be bought any time and continued without interruption for years, without need for a credit in parallel, like the more typical credit life requires. 2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.) The phone-based and interactive product training and financial literacy module offer significant added value. High listen-through rates of the automated messages indicate that many customer appreciate the service. 3 End-customers involved in product development Sekoci was intensely tested with customers before launch. Especially the content of the phone-based trainings saw several customer feedback rounds, and are still being adapted based on ongoing customer responses. 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) Voluntary opt-in for the insurance component. The phonebased training is automatically included, but can be optedout at any time. 5 Customer education and feedback mechanisms in place The phone-based trainings on product knowledge and financial literacy are a powerful education tool. The approach is based on an EduTainment concept, combining fun with education. Most weekly episodes allow for interactivity. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Sekoci is pre-underwritten and has few exclusions. It is officially recognized by the insurance regulator as a microinsurance product because it complies with the required product characteristics: Simple, Easy, Affordable, Instant. 7 Strong measures to ensure low transaction costs The enrollment process for Sekoci is simple and fast. The phone-based communication channel allows for easy distribution of renewal reminders. However, communication costs for the phone-based training component are still on the higher side. With increasing scale, they should reduce further. Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 9

10 2. Indonesia: Term Life edutainment (new) C. Product Brochure Front Back 10

11 2. Indonesia: Term Life edutainment (new) D. Phone-based training examples Product Training. Tell the family episode (broadcasted 7 days after registration date) My name is Mrs. Ali. Like you, I am also an Allianz customer who has benefited from Asuransi Sekoci. I would like to share my experience with you about the insurance. You know, it is very important to tell your family that you have Sekoci insurance policy. By doing so, they can take care of the claim process if something happened to you. If you have already informed your family? Press 1 for Yes, already. Press 2 for Not yet [if 1]: Thanks that you have already followed Mrs. Ali s advice [if 2]: Please tell your family as soon as possible that you now have Asuransi Sekoci. Thanks for heeding Mrs. Ali s advice. The actual messages are delivered in Indonesian language Financial Literacy Training. Introduction episode Good day, this is Mrs. Ali from the Sekoci program of Allianz. Over the next couple of weeks, you will receive my voice messages to improve your money management skills from this number. Around 2 calls and SMS per week. If we don t reach you, don t worry, we will try again 3 times if you missed a call. To make this training more engaging, memorable and useful for you, we will sometimes ask you to respond to some questions by pressing a key on your mobile. This responding is completely free. In fact, the entire education program is free for you. It is part of your Sekoci package. So let s try how this responding works, OK? Let s start with a simple question: Have you ever received any training on financial or money matters? [ ] 11

12 3. Colombia: Family Term Life A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Seguro de Vida (Life Insurance) Term Life Company name Allianz Colombia Country Colombia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institution (MFI) 1 July sentence product description Voluntary Group Term Life Insurance that provides life insurance cover to the group s members (and optional their partners) plus additional funeral cover to the insured group members and up to 4 freely chosen close relatives Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary opt-in Death due to any cause of insured (i.e. group member and optional against additional premium the partner): COP 3mn to COP 15mn depending on chosen premium plan (~ USD 980 to 4,900) Funeral benefit to member and 4 freely chosen close relatives (which can include the partner): up to maximum COP 3mn (~ USD 980) for all premium plans. Benefit expires after 2 death cases Maximum sum assured per person: COP 30mn (~ USD 10,000), e.g. if a client has multiple policies of this product Minimum COP 9,960 per month (~ USD 3.30) for minimum benefits for single insured and 4 relatives Maximum COP 42,068 per month (~ USD 15.00) for maximum benefits for insured, partner and 4 relatives COP 122,880 (USD ~ 40.00) Other comments The product is only available to active clients of the MFI, i.e. those who have an active credit and/or savings account with that MFI 90 days waiting period for minor pre-existing conditions 180 days waiting period for major pre-existing conditions (e.g. cancer) and suicide 12

13 3. Colombia: Family Term Life B. Product Assessment 1 Product: Seguro de Vida Ranking 2 Rationale / Comments A Commercial offer provided by Allianz B Offered in developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) Customer education and feedback mechanisms in place Simple product specifications (e.g. pre-underwritten, few exclusions) Strong measures to ensure low transaction costs - None Fully applied Colombia is an upper-middle-income country according to World Bank and hence still grouped under developing countries The MFI distributor targets low-income families, i.e. strata 1-3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low maximum loan amount of their micro-credit segment of COP 2.3mn (~ USD 750) The product protects several family members against death which is a significant risk. Coverage includes pre-existing conditions which allows for the inclusion of more vulnerable people (subject to waiting periods) Workshops were done by the MFI in selected branches to garner input for the product design, especially as previous life insurance offers had not found wide acceptance among customers Fully voluntary for existing customers of the MFI Overall ranking Simple brochures are provided, and because many customers are not fully literate - the bank s staff also gives verbal explanations. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk Simple product without health declaration. Several plan options exist, so the distinction of which family member has what level of coverage takes time to understand. Certain waiting periods and exclusions exist Monthly batch processing from MFI to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 13

14 4. Colombia: Home Business A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Seguro de Hogar (Home insurance) Property Company name Allianz Colombia Country Colombia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFIs) 1 July sentence product description Voluntary Group Property insurance that covers private homes, including those used for home-based business, against damage to the building and its content arising from various risks such as fire, lightening, flooding, windstorm, civil commotion etc. Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary opt-in Costs of repair or replacement of home and home content damages due to below risks are covered as follows and up to the given maximum values. Maximum values may differ per MFI and the highest value applied to any MFI is listed below: A: Fire, lightening, explosion, windstorm (incl. related rains and floods), falling trees, falling aircraft and vehicle crashes: up to COP 20mn (~ USD 6,500) B: Water damage, flooding, avalanche and landslides: up to COP 15mn (~ USD 4,900) C: Violent strikes, civil commotion and malicious acts by 3rd parties: up to COP 15mn (~ USD 4,900) D: Actions to contain damage, actions of public authorities and debris removal: up to COP 2mn (~ USD 650) E: Earthquake, volcanic eruption and tsunami (only applicable at some MFI): up to COP 15mn (~ USD 4,900) Max. sum insured from all risks per home over the entire life of the policy is COP 20mn (~ USD 6,500), i.e. should the accumulated damages exceed that amount, the excess is not covered Minimum: COP 4,995 (~ USD 1.60) per month Maximum: COP 6,700 (~ USD 2.20) per month COP 78,000 (~ USD 25) Other comments The product is only available to active clients of the MFI, i.e. those who have an active credit and/or savings account with that MFI Earthquake risk is not covered, as this is not considered important by customers and would significantly increase the premium A deductible of 10% applies to risks B and C above; risks A and D do not have a deductible 14

15 4. Colombia: Home Business B. Product Assessment 1 Product: Seguro de Hogar Ranking 2 Rationale / Comments A Commercial offer provided by Allianz B Offered in developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) Customer education and feedback mechanisms in place Simple product specifications (e.g. pre-underwritten, few exclusions) Strong measures to ensure low transaction costs - None Fully applied Colombia is an upper-middle-income country according to World Bank and hence still grouped under developing countries The MFI distributor targets low-income families, i.e. strata 1-3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low maximum loan amount of their micro-credit segment of COP 2.3mn (~ USD 750) Several serious risks to home property are covered. The sums insured are high enough to allow microentrepreneurs to quickly get back on their feet and resume their home-run businesses after a claim The product was developed based on strong customer demand to cater to the insurance needs of small entrepreneurs that borrow from the MFI and often run their business out of their private homes Fully voluntary for existing customers of the MFI Overall ranking Simple brochures are provided, and because many customers are not fully literate - the bank s staff also gives verbal explanations. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk For a property product, design and policy wording are kept relatively simple, with only 2 available coverage plans. Still, time is needed to explain the exact covered risks, the deductibles and the claim procedure. Monthly batch processing from MFI to insurer. No on-site claim inspection needed. A claim help desk and a bank agent help desk achieve streamlining of the service processes C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz microinsurance values, not an indicator for actual business success 15

16 5. Colombia: Life & Maternity A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Voy Seguro (I go safely) Term Life Company name Allianz Colombia Country Colombia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institution (MFI) 1 November sentence product description Voluntary Group Term Life Insurance that also provides maternity benefits to the insured or partner during pregnancy and after birth Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary opt-in Death of the insured due to any cause: COP 4mn basic life benefit COP 600k for food basket COP 500k funeral assistance, i.e. total death benefits of COP 5.1mn (~ USD 1,700) Maternity benefits for insured or partner: COP 400k at 6 months into pregnancy and COP 200k after birth, i.e. total maternity benefits of COP 600,000 (~ USD 200) Maximum sum assured per person: COP 32mn (~ USD 10,000), e.g. if a client holds multiple policies of this product COP 4,990 per month (~ USD 1.60) One standard plan only; no other premium and benefit options COP 59,880 (~ USD 20) Other comments The product is only available to active micro-loan clients of the MFI (the MFI offers no savings services) The food basket and funeral assistance benefits are usually paid out as a cash lump sum together with the basic life insurance benefit 90 days waiting period for pregnancy and minor pre-existing conditions 180 days waiting period for major pre-existing conditions (e.g. cancer) and suicide 16

17 5. Colombia: Life & Maternity B. Product Assessment 1 Product: Voy Seguro Ranking 2 Rationale / Comments A Commercial offer provided by Allianz B Offered in developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) Customer education and feedback mechanisms in place Simple product specifications (e.g. pre-underwritten, few exclusions) Strong measures to ensure low transaction costs - None Overall ranking Fully applied Colombia is an upper-middle-income country according to World Bank and hence still grouped under developing countries The MFI distributor targets low-income families, i.e. strata 1-3 of the 6-step Colombian socioeconomic stratification. This can also be seen by the low average loan amount of their borrowers of COP 2.3mn (~ USD 750) Death is a significant risk and coverage includes preexisting conditions (subject to waiting periods). Moreover, maternity expenses are a very frequent risk even if the related policy benefits are not high. Focus Group Discussions with the MFI customers have strongly influenced the product, for example that the larger part of the maternity benefits is already paid out at 6 months pregnancy. This allows the expectant mothers to prepare in time for the delivery and post-natal phase. Fully voluntary option that can be added to the MFIs credit offering Customers receive verbal explanations from the bank s staff. Brochures are not used as customers are often semiliterate. Customers receive insurance certificates, have access to a 24/7 hotline and to a special claim help desk Simple, easy to understand product design with only one available standard plan. No health declaration required. However, certain waiting periods and exclusions exist. Monthly batch processing from MFI to insurer, sales are done complementary on top of other products (credit, savings). A claim help desk and a bank agent help desk achieve streamlining of the service processes C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz microinsurance values, not an indicator for actual business success 17

18 6. Indonesia: Comprehensive Health A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) GO-JEK Driver Health Insurance Plan Comprehensive Health Insurance Company name Allianz Life Indonesia Country Indonesia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Direct distribution to Motorcycle Taxi drivers of GO-JEK company 10 June sentence product description Voluntary health insurance plan for GO-JEK motorcycle drivers and their close family (spouse, children) that covers both inpatient and outpatient treatment, with cashless facility offered in Allianz AdMedika hospital network throughout Indonesia Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary Inpatient and outpatient treatment Coverage limits apply per treatment e.g. maximum IDR 25mn (~ USD 1,900) for surgery per hospitalization period e.g. IDR 50,000 (~ USD 3,80) for each General Practitioner outpatient consultation Basic immunization for children <5 years included Death benefit of IDR 3,000,000 (~ USD 230) IDR 2,300 (~ USD 0.15) per person per day, directly deducted from drivers mobile GO-JEK payment balance IDR 840,000 (~ USD 65) per person per year Other comments GO-JEK Driver is a similar service as Uber but for motorcycle taxis Additional resources Article on health insurance plan for Gojek drivers (Project M 2016) Testimonial video (Allianz 2016) 18

19 6. Indonesia: Comprehensive Health B. Product Assessment 1 Product: A GO-JEK Driver Health Insurance plan Commercial offer provided by Allianz Ranking 2 B Offered in developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) - None - No Rationale / Comments Fully applied Voluntary Indonesia is a lower-middle-income country according to World Bank and hence still grouped under developing countries The product is exclusively available to freelance motorcycle taxi drivers that operate under the GO-JEK brand. These motorcycle taxi drivers don t have any fixed salary and belong to the lower income group in Indonesia Health expenses are consistently ranked among the top 3 risks that low-income people face across the globe. This product provides wide ranging coverage for such expenses, moreover on cashless basis if used within the Allianz AdMedika hospital network 5 Customer education and feedback mechanisms in place Each insured receives a membership card with key contact numbers printed on it. There is also a dedicated mobile website with explanatory videos and product information. On top, there is a customer service hotline (office hours) and a 24/7 medical hotline available 6 Simple product specifications (e.g. pre-underwritten, few exclusions) For a comprehensive medical plan the benefit structure is comparatively simple. Moreover, daily premium payment through mobile is very convenient for motorcycle taxi drivers who receive their income on daily basis 7 Strong measures to ensure low transaction costs Enrollment and payment is conveniently done through the GO-JEK driver s mobile app. The cashless facility at Allianz AdMedika network hospitals reduces hassle for the customer and improves claim settlement times Overall ranking C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz microinsurance values, not an indicator for actual business success 19

20 7. Madagascar: Mobile Term Life A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Airtel Antoka Enhanced Mobile Term Life Company name Allianz Africa Country Madagascar Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Airtel telecommunication company June sentence product description In its current first phase, the product provides free cover for (a) death due to all causes, (b) total permanent disability due to accident, and (c) a lump sum hospital cash benefit for inpatient stays of minimum 3 days. Sums insured are linked to airtime consumption ( the more you call the more cover you get ). Premiums are paid by Airtel as a loyalty scheme In a second phase (still to be launched), sums insured will double, a flat standard monthly fee to customers will be added, and customers will be able to enroll another family member (against extra premium). Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Voluntary opt-in Sums insured depend on the previous month s airtime consumption Death due to all causes and Total Permanent Disability due to accident: Phase 1: MGA 100,000 1mn (~ USD ) Phase 2: MGA 100,000 2mn (~ USD ) Hospital cash lump sum, paid for every hospital stay of min. 3 days: Phase 1: MGA 15,000 50,000 (~ USD ) Phase 2: MGA 15, ,000 (~ USD ) Premium range (min, max) Avg. premium / year (annualize if necessary) Phase 1: free, starting from min. previous month s airtime consumption of MGA 3,500 (~ USD 0.95) and max. sum insured reached if previous month s airtime consumption is MGA 20,000 (~ USD 6.50) or more Phase 2: MGA 1,500 (~ USD 0.45) for 1 person or MGA 3,000 (~ USD 0.95) for 2 persons per month with no min. airtime and max. sum insured reached if previous month s airtime is min. MGA 20,000 (~ USD 6.50) Phase 1: free Phase 2: MGA 21,600 (~ USD 7.00), i.e. average MGA 1,800 (~ USD 0.55) per month Other comments In phase 2, if customers don t choose at least the MGA 1,500 (~ USD 0.45) monthly plan (i.e. 1 person), all coverage will stop Even in phase 2, benefits will continue to increase with the previous month s airtime consumption regardless of the flat membership fee 20

21 7. Madagascar: Mobile Term Life B. Product Assessment 1 Product: Airtel Antoka Ranking 2 Rationale / Comments A Commercial offer provided by Allianz Fully applied B Offered in developing countries C 1 2 Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) - None Madagascar is a low income country according to World Bank and hence grouped under developing countries With its small sums insured and eligibility limited to prepaid airtime customers only (instead of the generally betteroff post-paid customers), it can be safely assumed that the great majority of insured is low-income Of the three covered risks (death, accidental disability and hospitalization) at least death and hospitalization can be considered a high risk to most, especially for low income people to whom the sums insured are meaningful 3 End-customers involved in product development - No 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) Voluntary opt-in 5 Customer education and feedback mechanisms in place Giving the product away for free in its initial launch phase carries a strong learning by doing element, i.e. a form of customer education. Moreover, a 24h toll-free hotline is available for inquiries. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Enrollment is straight forward through USSD with few questions asked, on the spot acceptance. Exclusions are minimal. Claim requirements are also reduced to an absolute and flexible minimum. 7 Strong measures to ensure low transaction costs Fully digital enrollment and (in phase 2) digital collection, plus simplified processes and documentation requirements allow for efficient, low-cost mass-scale administration Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 21

22 7. Madagascar: Mobile Term Life C. Product Brochure 22

23 8. India: SSS Life & Savings A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Sarve Shakti Suraksha (SSS) 5-year term life insurance with systematic savings incorporated Company name Bajaj Allianz Life Insurance Company Limited Country India Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Non-bank Microfinance Institutions (MFIs), Regional Rural Banks, Banking Correspondents, Customer Support Centers, Cooperatives Launch date: April 2008 Stop date: effective August 2013, this product has been closed for the issuance of new group policies, due to regulatory changes Last policies will mature in sentence product description A combination of term insurance and systematic savings benefits designed to provide risk protection as well as alternative savings opportunities The product term is 5 years Group or individual product Group Insurance Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary opt-in Sum Insured: Minimum INR 2500 (~ USD 35), no limit on maximum coverage (Subject to underwriting limits) Risks covered: Natural and accidental death disability Minimum INR 500 (~ USD 7.50) per annum no limit on maximum premium INR 1,750 (~ USD 25) Other comments The product has won numerous awards, including the Skoch Award for Financial Inclusion 2011 &

24 8. India: SSS Life & Savings B. Product Assessment 1 Product: A Sarve Shakti Suraksha (SSS) Ranking 2 Rationale / Comments Commercial offer provided by Allianz Fully applied B Offered in developing countries India is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Majority of the premiums collected for this product are under INR 2,000 (~ USD 30) per year Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development - None - No SSS offers life coverage and a savings feature but claims and especially savings balances are relatively small, even for low-income Indians. Moreover, in case of RBBs outstanding loan balances are deducted first 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) It is a voluntary opt-in. In some cases premium amounts are also bundled with the loan installments to make the product affordable. However, there is no compulsion from the distribution partner s side at any point in time 5 Customer education and feedback mechanisms in place Allianz hotline printed on every brochure and policy document. A systematic Value for the Customer education initiative has been put in place, too 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Guaranteed issuance except where questions on the health declaration are marked as affirmative. Only exclusion: Suicide not covered in year 1 7 Strong measures to ensure low transaction costs The delivery channel fully integrates the product into existing business processes. Collection is often aligned with loan repayment. Other operational tasks are also outsourced Overall ranking C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 24

25 9. Indonesia: Credit Life Plus A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Payung Keluarga (Family Umbrella) Company name Allianz Indonesia Country Indonesia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Term Life (attached to credit accounts), with riders Banks, MFIs 1 Sep 2006 for base product 27 Nov 2013 for riders 1-sentence product description Compulsory group credit life coverage (conventional or takaful) with flexible benefits and a voluntary personal accident riders Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Compulsory for base product (with benefit package pre-configured by MFI), and voluntary for add-on riders Mandatory base Product: Risk: Death of debtor and spouse (optional) Benefit: Outstanding loan balance, or original loan amount Additional funeral benefit of up to 2x original loan (optional) Loans: IDR 0 max. 200mn (~ USD 0-15,000) Voluntary rider (since Dec-2013): Personal Accident for accidental death and total or partial permanent disability, with benefits of up to IDR 25,000,000 (~ USD 1,900) - pro-rated for partial disability Mandatory base Product: IDR 100 to 1mn (~ USD ), depending on loan amount, tenor & benefits Voluntary rider (annualized premium, coverage runs as long as loan): Personal Accident: IDR 8,000 20,000 (~ USD ) Base Product: IDR 12,000 (~ USD 0.90) Rider: n.a. Other comments Base product is modular, with theoretically 54 different benefit configurations for MFIs to choose from Additional resources MILK Doing the Math - Brief no 36 (Microinsurance Centre 2015) Case Study: Escaping the credit life gap (Allianz 2015) Case Study: How Allianz Indonesia reached over 1 million with microinsurance (Allianz 2013) 25

26 9. Indonesia: Credit Life Plus B. Product Assessment 1 Product: A Payung Keluarga Ranking 2 Rationale / Comments Commercial offer provided by Allianz Fully applied B Offered in developing countries Indonesia is a lower-middle-income country according to World Bank and hence grouped under developing countries C 1 2 Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) - None 98% of insured loans are under IDR 5mn (~ USD 380). This serves as a reliable proxy for majority low income customers Death of a breadwinner is a significant risk to low-income families in Indonesia. Although most loans are covered for the outstanding balance only, 20% of them also carry some cash payout to the families. The voluntary personal accident rider adds further flexibility to customers. 3 End-customers involved in product development Extensive market research was done to understand the target market. Life risk was only the top4 identified customer risk. 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) The base credit life cover is compulsory for customers as per the MFIs benefit configuration. However, the additional rider can be taken by customers on voluntary basis. 5 Customer education and feedback mechanisms in place Brochures are provided by some MFIs. Other MFIs distribute member cards instead. MFI staff is also equipped with flip-charts to explain the product on the spot. Direct helpline and Allianz address are not provided, except for the rider product. No systematic feedback collection. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Free coverage limit up to IDR 10mn (~ USD 730). Only 2 exclusions: Suicide and insurance related crime ( age limit 17-65) 7 Strong measures to ensure low transaction costs Product, distribution and collection are fully integrated with MFI micro loans, including for riders. Most of the data entry and claims handling is also outsourced to the MFIs Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 26

27 9. Indonesia: Credit Life Plus C. Product Brochure Compulory base product Member Card as alternative to brochure Front Back 27

28 9. Indonesia: Credit Life Plus C. Product Brochure Voluntary add-on rider Front Back 28

29 10. Indonesia: Term Life A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Si Peci (abreviation of Asuransi Penuh Cinta or Insurance filled with Love) Term Life Insurance Company name Allianz Indonesia Country Indonesia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFIs), Allianz Agents 1 July sentence product description Simple term Life insurance with guaranteed acceptance in voucher format that has a one year duration and one-time premium of IDR 50,000 (~ USD 3.70). The policy is activated by sending a unique activation code printed on the voucher card via SMS to Allianz and coverage is immediately confirmed by Allianz via SMS as well. Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Voluntary opt-in Risk covered: Death due to all causes Sum insured: Natural Death: IDR 5mn (~ USD 380) Accidental Death: IDR 25mn (~ USD 1,900) All vouchers cost IDR 50,000 (~ USD 3.80) and are valid for one year Avg. premium / year (annualize if necessary) IDR 50,000 (~ USD 3.80) Other comments Si Peci is a standard product that was developed under the guidance of AAJI, the Indonesian Life Insurance Association, and is currently marketed by a number of Indonesian life insurance companies. Only one Si Peci policy can be bought and activated per person. This product replaced the previous Kartu Proteksiku scratch-card Personal Accident product of Allianz. 29

30 10. Indonesia: Term Life B. Product Assessment 1 Product: Si Peci Ranking 2 Rationale / Comments A Commercial offer provided by Allianz Fully applied B Offered in developing countries Indonesia is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Product is mainly distributed through MFIs that focus on low-income customers. Moreover, the product was specifically developed as a microinsurance product by the Indonesian Life Insurance Association. 1 Significant contribution to improving low-income people s lives Death is a significant risk for low-income families in Indonesia. The sum insured for natural death is meaningfully high and the payout to annual premium ratio of 100 for natural death is good End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) - None - No. During the product development process, the Indonesian Life Insurance Association did not carry out direct customer research. It relied on the input and experience of its member insurance companies. 100% voluntary 5 Customer education and feedback mechanisms in place Customer receives full policy wording as booklet and a handy insurance card to be put in wallet, including Allianz service number and address. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Simple-to-understand product benefits, costs and product format (voucher); automatic acceptance via SMS with only two exclusions (suicide and insurance related crime). 7 Strong measures to ensure low transaction costs SMS activation and single premium payment minimize distribution and collection costs. Claim settlement is traditional. No integrated IT system. Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 30

31 10. Indonesia: Term Life C. Product Brochure Insurance Voucher - Front Insurance Voucher - Back Brochure 31

32 11. Ivory Coast: Funeral Insurance A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Assurance Obséques (Funeral Insurance) Funeral Insurance Company name Allianz Ivory Coast Country Ivory Coast Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFIs) October sentence product description Payment of a lump sum in case of death due to any cause, with variable options (accidental death, education grant for children, family coverage); exact offering may vary per MFI Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Voluntary opt-in Death: lump sum from XOF 300,000 to 2,000,000 (~ USD 500 3,400), depending on selected benefit plan With some MFIs, spouse, children, and parents can be selectively added to coverage the death benefit is doubled in case of accidental death the insured can choose to have a part of the death benefit paid directly to an undertaker a supplementary education rider can be added, which provides XOF 100,000 to 500,000 (~ USD ) for 4 to 6 years as school fees payment (depending upon chosen option) Premium range (min, max) From XOF 5,000 to 125,000 (~ USD ) per year, depending on age and chosen options An additional XOF 1,000 (~ USD 1.70) one time subscription fee is charged Avg. premium / year (annualize if necessary) Other comments None XOF 22,000 (~ USD 35) 32

33 11. Ivory Coast: Funeral Insurance B. Product Assessment 1 Product: A Assurance Obséques Commercial offer provided by Allianz Ranking 2 Rationale / Comments Fully applied B Offered in developing countries Ivory Coast is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment The customers of the MFI distribution partners are lowmedium segment, with at least 80% of the insured belonging to the 60% of population with the lowest incomes 1 Significant contribution to improving low-income people s lives Funerals are a significant expense in Ivory Coast, and the product significantly contributes to covering these. Family and parents can be covered as well at very competitive pricing. The possibility to add an education rider gives further options to customize the product to customer needs. 2 End-customer receives other tangible benefits (e.g. discounts, lottery etc.) - No tangible other benefits. But with some MFIs the insured has the option that part of the payout is paid to the undertaker to ensure a proper funeral, no matter what 3 4 End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) - No customer studies 100% voluntary 5 Customer education and feedback mechanisms in place Simple language brochures are provided. Some MFIs also give Allianz contact details on their brochures. No service hotline and systematic collection of customer feedback. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Simple base product, with simple add-on options (e.g. education rider), no medical selection 7 Strong measures to ensure low transaction costs The MFIs takes charge of distribution, subscription, data and premiums collection, and parts of the claims process. This significantly lowers costs Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 33

34 11. Ivory Coast: Funeral Insurance C. Product Brochure Front Back 34

35 12. India: CSC Life & Savings A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) CSC Bachat Plus (CSC Savings Plus) Variable Life Insurance Plan Company name BajajAllianz Life Insurance Company Limited Country India Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) CSCs only, i.e. Common Service Centers. Under CSC, a special purpose vehicle has been formed to enable services through the CSC network. These centres offer public and private services, such as private financial services like insurance, via a fully digitalized platform. There are now over 200,000 CSCs in India. 26 August sentence product description Life insurance with regular premium contributions, the larger share of which will accumulate as a savings value (Policy Account Value) and the smaller share of which will be used to pay the Life insurance cover and administration; at policy maturity, customers will receive more back than they paid in gross premiums. Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Voluntary opt-in Risk covered: Death due to all causes of policyholder Sum insured: between INR 12,600 (~ USD 190) and INR 200,000 (~ USD 3,000) Maturity Benefit: Policy Account Value, i.e. net paid premiums credited with 1% guaranteed interest rate every year and additional interest rate of 4% (years 1 5) or 0.5% (years 6); guaranteed minimum maturity benefit is gross paid premiums (less any withdrawals) compounded at 1% per year Premium range (min, max) Minimum INR 150 (~ USD 2.20) per month or INR 1,800 (~ USD 25) if yearly mode Maximum INR 1,665 per month (~ USD 25) or INR 20,000 (~ USD 300) if yearly mode Avg. premium / year (annualize if necessary) INR 2,000 (~ USD 30) per year Other comments CSC-labeled products fall under a special CSC guideline of the Indian insurance regulator. They can only be distributed through the CSC network. Other distribution channels are not allowed. All products to be sold from these CSC outlets have to be pre-fixed with the name CSC. 35

36 12. India: CSC Life & Savings B. Product Assessment 1 Product: CSC Bachat Plus Ranking 2 Rationale / Comments A Commercial offer provided by Allianz Fully applied to the risk portion of the product. There is also an interest bearing savings component. B Offered in developing countries India is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Majority of the premiums collected for this product are under INR 2,300 (~ USD 35) per year Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) Customer education and feedback mechanisms in place Simple product specifications (e.g. pre-underwritten, few exclusions) Strong measures to ensure low transaction costs - None - CSC Bachat Plus offers the double benefit of life coverage and a savings feature with clear guarantees. The sums insured and maturity values are high enough to make a difference for low-income Indians. No. The regulations on CSC products by the insurance supervisor leave little room for product feature flexibility. Customer involvement could therefore only have little impact on product design. 100% voluntary There is no direct customer education from the company to customers in place. However, in order to obtain their necessary insurance sales license, CSC sales staff need to undergo 20 hours of training to educate customers on the product. Contact numbers for complaints are clearly provided, and complaints are tracked and reported on as required by the regulator. For a variable insurance plan, the product is relatively simple. However, an understanding of interest rate guarantees is required. Regulations lead to a few rather complex definitions, e.g. of the exact Sum Assured at Death. CSC products piggy-back on the fully digitalized CSC infrastructure of over 200,000 CSCs in India. This ensures low operational costs, transparent digital processes and good accessibility for customers, even in rural areas. Overall ranking C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 36

37 13. India: BDSY Life & Savings A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Bima Dhan Suraksha Yojana (BDSY) ( Saving Insurance Scheme ) Term Life Insurance (with return of premium) Company name BajajAllianz Life Insurance Company Limited Country India Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFI) 1 October sentence product description Voluntary non-linked, non-participating, single & regular premium payment micro term insurance plan with 5, 7 or 10 years policy term and 100% return of premiums at maturity Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary Death due to any cause: Minimum sum insured: INR 7,500 (~ USD 110) Maximum sum insured: INR 200,000 (~ USD 3,000) Maturity benefit: Return of total premium, excluding any extra premium, service tax & education cess, if any Regular Premium: INR 1,500 (~ USD 20) to INR 6,000 (~ USD 90) per year Single Premium: INR 5,000 (~ USD 75) to INR 25,000 (~ USD 370) INR 3,000 (~ USD 45) Other comments Monthly premium payment is also possible. Surrender of the policy for a surrender value is possible, for single premium at any time and for regular premium after first year. 37

38 13. India: BDSY Life & Savings B. Product Assessment 1 Product: A Bima Dhan Suraksha Yojana Commercial offer provided by Allianz Ranking 2 Rationale / Comments Fully applied B Offered in developing countries India is a lower-middle-income country according to World Bank and hence grouped under developing countries C 1 2 Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) - None The product has officially been registered by the Indian regulator under its microinsurance regulations. A lowincome focus is therefore ascertained The product offers life insurance protection for a relatively long period of time and allows customers to choose the premium and sum insured according to their individual payment capacity and protection needs. Moreover does the return of premium feature act as a meaningful savings vehicle for customers 3 End-customers involved in product development - No. The product was developed with consideration of the regulator s micro insurance guidelines 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) Voluntary opt-in 5 Customer education and feedback mechanisms in place A toll free customer hotline number is printed on all brochures and policy documents. Moreover, the Indian ombudsman function is explained in the policy certificate. Lastly, the company conducts regular financial education events together with the distribution partners 6 Simple product specifications (e.g. pre-underwritten, few exclusions) At a high level, the product is simple. The return of premium feature is easy to understand and has no interest rate risk to the customer. However, also due to Indian regulations the product carries quite a bit of fine-print 7 Strong measures to ensure low transaction costs One pager enrollment form & death claim form with minimum documentation Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 38

39 13. India: BDSY Life & Savings C. Product Brochure Outside Inside 39

40 14. Ivory Coast: Mobile Savings A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Allianz Epargne (Allianz savings) Pure savings plan (no insurance element!) Company name Allianz Côte d Ivoire Assurance Vie Country Ivory Coast Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Telecommunication company 1 June sentence product description Mobile savings plan with regular contributions for min. 3 years where 85% of investment earnings on the net premium are credited to the account value (example: of 10% investment return on net premiums 8,5% are credited to customer s savings account) Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary opt-in At the end of the savings plan s term, or in case of prior death or total permanent disability, the account value accumulated until this date will be returned in full to the account holder Benefits: terminable annuities chosen by the insured Max. 30% of the account value can be withdrawn every year (except in year 1) at no penalty; total withdraw is possible after two years at 5% surrender fee Premiums are minimum XOF 3,000 (~ USD 5) per month Premiums can also be paid quarterly, semi-annually or annually Premiums are automatically deducted from customer s mobile money account Premiums are subject to an administration fee of 6.6%, the net of which will be invested with annual investment results credited 85% to the account XOF 40,000 (~ USD 65), based on the fact that most policyholders choose the monthly premium payment option Other comments Minimum age limit is 21; no maximum age limit Enrollment still happens by physical form filling at the telco s outlets, but premium payment is only possible through mobile money Although this non-insurance product was already launched in 2012 it was just included in the Emerging Consumers report in 2016 because only since then are non-insurance able to be included in reporting. 40

41 14. Ivory Coast: Mobile Savings B. Product Assessment 1 Product: Allianz Epargne Ranking 2 Rationale / Comments A Commercial offer provided by Allianz Fully applied B Offered in developing countries Ivory Coast is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) - None - No Mobile money is primarily used by low-income people in developing countries, including in Ivory Coast. The fact that most policyholders choose the minimum required monthly savings amount also indicates their low-income status This savings plan may be the first time ever that customers have the opportunity to put money aside in a formal savings plan. Experience shows that the opportunity for convenient, private and formal savings is much appreciated by lowincome people in developing countries Voluntary opt-in 5 Customer education and feedback mechanisms in place Through their mobile product administration menu on their phone, customers can always get in touch with Allianz and even execute some self-service action such as savings withdrawals 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Because this is not insurance, there is no underwriting and everyone 21 years or older can easily join. The product works with percentages, e.g. for investment crediting, which may not be fully understood by all savers 7 Strong measures to ensure low transaction costs Savings contributions are conveniently paid through mobile money. Also some self-administrative functions can easily be done through the phone. However, the enrollment process itself is still partly paper-based Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 41

42 14. Ivory Coast: Mobile Savings C. Product Brochure Front 42

43 14. Ivory Coast: Mobile Savings C. Product Brochure Back 43

44 15. India: Crop Index A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Crop index insurance Index Insurance Company name BajajAllianz General Insurance Co. Ltd. Country India Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Banks March 2014 for WBCIS schemes March 2016 for PMFBY schemes 1-sentence product description This insurance mostly falls under the subsidized public Indian PMFBY scheme (Prime Minister s Crop Insurance Scheme). A smaller portion falls under the subsidized public WBCIS scheme (Weather-Based Crop Insurance Scheme). PMFBY covers smallholder farmers against shortfall in crop yields due to multiple risks. WBCIS covers more specifically against crop damages due to adverse weather conditions. Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Compulsory (tied to agricultural loans) Cover: Adverse behavior of a yield index (PMFBY) or weather index (WBCIS) as a proxy for actual losses. Payouts start from a pre-defined trigger point, e.g. long-term average yield, and proceed in steps until a defined exit point at which the maximum sum insured would be paid Risks included under PMFBY: Prevented sowing, standing crop losses due to flood, drought, fire, cyclone, pests etc., localized risks like hailstorm, inundation etc., post harvest losses Risks included under WBCIS: Several weather indices can be used, e.g. rainfall (excess, deficit, dry spells), temperature (high/low), humidity, wind speed or any other measurable weather parameter The trigger, exit and sum insured depend on the location, season, crop, claim experience and business potential Sum insured is equal to the loan amount Avg. loan size is INR 15,000 30,000 (~ USD ) for food crops and INR 20, ,000 (~ USD 300 1,500) for cash crops Farmer premium per hectare: INR 250 to 1,000 (~ USD ) Farmer premium per loan: 2% (PMFBY) or 5-12% (WBCIS) of loan for rainy season and 1.5% (PMFBY) or 4-8% (WBCIS) for winter season Farmer premium of around INR 1,700 (~ USD 25) per loan for food crops and INR 5,000 (~ USD 75) per loan for cash crops Annualization is not applicable because coverage only runs 3.5 months Other comments This product is subsidized by average 90% under the PMFBY scheme and 30% 75% under the WBCIS scheme The product is also available on voluntary basis. However, this option plays a marginal role 44

45 15. India: Crop Index B. Product Assessment 1 Product: Crop Index Ranking 2 Rationale / Comments A Commercial offer provided by Allianz Fully applied B Offered in developing countries India is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) - None. - The government s PMFBY and WBCIS schemes, under which this products is brought to market, specifically targets low-income smallholder farmers. Crop loss due to weather risks and other adverse events is the single largest risk for farming in India. The product significantly contributes to mitigate such risks and allows farmers continued access to agricultural credits. End customers are not directly involved but the Government involves representatives from the district authorities in finalizing the index and negotiates with the insurance company to make the triggers farmer friendly. Mostly compulsory because tied to agricultural loans. A small number of non-loaning smallholder farmers also take the subsidized insurance on a voluntary basis. 5 Customer education and feedback mechanisms in place BajajAllianz General puts a lot of effort into creating product awareness (farmer meetings, van campaign, marketing collaterals, phone based education etc.) 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Only few exclusions apply, especially on PMFBY. The yield index mechanism is relatively easy to explain on PMFBY, but slightly more complex on WBCIS. 7 Strong measures to ensure low transaction costs Enrollment data requirements are numerous and time consuming, but banks do help with enrollment since they already have most data at hand. Due to the index-based claim mechanism, farmers do not need to file claims. Claims are triggered automatically if the index strikes. Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 45

46 15. India: Crop Index C. Product Brochure A (PMFBY) 46

47 15. India: Crop Index C. Product Brochure B (WBCIS) 47

48 16. India: Group Term Life A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Group Term Life Pure Risk Insurance coverage for a period of one year Company name Bajaj Allianz Life Insurance Company Limited Country India Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Non-bank Microfinance Institutions (MFIs) Not available 1-sentence product description An insurance product designed to provide risk protection against natural death to loan or savings customers Other benefits include an accidental death & disability rider Group or individual product Group Insurance Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Compulsory, with voluntary doubling of sum insured with some MFIs Sum Insured: Minimum INR 1,000 (~ USD 15), no limit on maximum coverage Some MFIs allow a voluntary doubling of the sum insured against a doubling of the premium Risks covered: Natural and accidental death Disability rider is optional (but rarely implemented in microfinance context) For loans, the MFIs deduct the outstanding loan balance (if any) from the sum insured For savings, the full sum insured is paid to the beneficiary Depending on the group, underwriting rate is set by the company s underwriter Varies based on group demographics INR 100 (~ USD 1.50) Other comments In 2015, the product was for the first time attached to savings products of MFIs and the possibility of voluntary sum insured doubling was introduced. Previously, the product was fully compulsory and only attached to loans. GTL (Group Term Life) is used for the dominant form of 1-year microloans. For multi-year loans, technically a different product called GCPP (Group Credit Protection Plus) is used. However, besides duration all other characteristics are the same. This assessment and our reporting lumps both products together. 48

49 16. India: Group Term Life B. Product Assessment 1 Product: A Group Term Life Ranking 2 Rationale / Comments Commercial offer provided by Allianz Fully applied B Offered in developing countries India is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development - None - No All loan customers of MFIs are enrolled in the scheme. The great majority of MFI customers are low to very low income The outstanding loan can be paid off from the sum insured in case of death. The difference is paid to the beneficiaries, but it is often a small amount, unless the MFI allows for a voluntary increase of the sum insured. 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) In the context of an MFI opting for this product, it is compulsory. This applies to lending as well as savings products to which this product is attached. Some MFIs allow for voluntary doubling of the sum insured. 5 Customer education and feedback mechanisms in place Customers receive insurance certificates of insurance with Allianz name and address. No service line and systematic feedback collection in place 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Simplified product design and easy to explain. The only exclusion is suicide not being covered in year 1. It is covered for repurchases from year 2 on 7 Strong measures to ensure low transaction costs Distribution and collection is outsourced to the MFI for lower costs. The MFIs also forward certificates of insurance & assist with claims Overall ranking C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 49

50 17. Indonesia: Savings-linked Life A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Payung TabunganKu (umbella for my savings) Term Life Insurance Company name Allianz Life Indonesia Country Indonesia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFIs) 1 June sentence product description Insurance that is bundled with savings and time deposits of MFIs, with premiums usually paid by the MFI and sums insured usually equal to the savings balance ( The more you save, the more insurance you get ) Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Mostly compulsory, although some MFIs offer the product voluntarily for time deposit customers. Death due to any cause Benefit can be up to maximum IDR 200mn (~ USD 15,000) and structured in 3 different ways: A) Same amount as savings balance or time deposit amount (most common) B) Fixed amount irrespective of savings balance C) Amount that has still not been saved in a targeted savings plan, i.e. the savings shortfall Premium range (min, max) 0.048% of sum insured per month for age Avg. premium / year (annualize if necessary) Average IDR 450 (~ USD 0.05) per month, i.e. IDR 5,400 (~ USD 0.40) per year Average insured savings balance is IDR 1,000,000 (~ USD 75) Other comments Spouse coverage and coverage for ages is also available at special rates This product is the sister product to Payung Keluarga, which is virtually the same product for micro-credits 50

51 17. Indonesia: Savings-linked Life B. Product Assessment 1 Product: A Payung TabunganKu Commercial offer provided by Allianz Ranking 2 Rationale / Comments Fully applied B Offered in developing countries Indonesia is a lower-middle-income country according to World Bank and hence grouped under developing countries C Min. 80% of people reached are from low-income segment The product is distributed through Microfinance Institutions which primarily target low-income customers. The low average insured savings balance of IDR 1,000,000 (~ USD 75) confirms the low-income status of customers Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) - None - No The product offers life insurance protection for as long as people are saving. That is an advantage over credit life where insurance stops when credits are repaid. Moreover, in the most common configuration the product rewards savers who save more with an increase sum insured - Mostly compulsory, apart from a few exceptions 5 Customer education and feedback mechanisms in place The MFIs explain the insurance to customers during the marketing of their own savings product. As MFIs usually pay the premium, that money would be wasted if customers don t appreciate the insurance. However, no special education measures or feedback mechanisms are in place 6 Simple product specifications (e.g. pre-underwritten, few exclusions) Free coverage limit up to IDR 10mn (~ USD 750). Only 2 exclusions: Suicide and insurance related crime 7 Strong measures to ensure low transaction costs Product, distribution and collection are fully integrated with the MFIs own micro-savings products. Most of the data entry and claims handling is also outsourced to the MFIs Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 51

52 17. Indonesia: Savings-linked Life C. Product Brochure Outside Inside 52

53 18. Malaysia: Motorcycle Personal Accident A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Motorcycle & Personal Acccident Motorcycle & Personal Accident Company name Allianz General Malaysia Country Malaysia Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Postal Service 1 July sentence product description Motorcycle coverage for third-party liability and (optional) loss and damage to due to accident Personal Accident as semi-bundled extra offer Group or individual product Individual Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Voluntary opt-in Motorcycle loss & damage: maximum current market value of motorcycle PA: Death due to accident: MYR 5,000 (~ USD 1,200) PA: Total permanent disability or dismemberment: MYR 5,000 (~ USD 1,200) PA: Bereavement benefit: MYR 500 (~ USD 120) for Motorcylce: n.a.; for PA: MYR 15 (~ USD 3.60) per year For Motorcycle: MYR 100 (~ USD 25) For PA: MYR 15 (~ USD 3.60) Other comments Motorcycle premiums vary per brand and engine volume Product is also marketed by tied agents at different premiums (excluded here) Third-party liability cover is a statutory requirement for motorcycles in Malaysia. Additional motorcycle cover and personal accident cover are voluntary 53

54 18. Malaysia: Motorcycle Personal Accident B. Product Assessment 1 Product: A Motorcycle & PA Ranking 2 Commercial offer provided by Allianz Applied B Offered in developing countries Rationale / Comments Malaysia is an upper-middle-income country according to World Bank and hence still grouped under developing countries C Min. 80% of people reached are from low-income segment Customer base of postal service is generally low-income, especially for insurance sales Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development - None - No Motorcycle coverage is comparable in importance to car coverage in developed markets. It is a statutory requirement in Malaysia. PA is sensible for motorcyclist as a high risk group 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) Several options to choose from: Third-Party liability only (a statutory requirement), comprehensive (TPL loss & damage) and on-top Personal Accident cover 5 Customer education and feedback mechanisms in place Brochures and policy documents are provided, including an Allianz customer service hotline. Coverage is widely used and well known in Malaysia. 6 Simple product specifications (e.g. pre-underwritten, few exclusions) - Motorcycle policy wording is quite lenghty, the same as for all other distribution channels (e.g. tied agents), and the same as for car insurance 7 Strong measures to ensure low transaction costs Distribution through low-cost Malaysian postal service allows somewhat lower distribution and operational costs (e.g. vis-à-vis tied agents) Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 54

55 18. Malaysia: Motorcycle Personal Accident C. Product Brochure Outside Personal Accident only. No brochure for Motorcycle component. 55

56 18. Malaysia: Motorcycle Personal Accident C. Product Brochure Inside Personal Accident only. No brochure for Motorcycle component. 56

57 19. West Africa & Egypt: Credit Life A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Assurance Décès Emprunteur (Life Insurance for Entrepreneurs) Term Life (attached to credit accounts) Company name Allianz Africa and local subsidiaries Country Cameroon, Burkina Faso, Egypt, Ivory Coast, Madagascar, Senegal Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFIs) 13 January sentence product description In case of death of the loan taker due to all causes or in case of total permanent disability of the loan taker due to accident, Allianz repays 100% of the initial loan amount Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Compulsory Other comments none Death of the loan taker due to all causes Death of spouse (as voluntary add-on, Senegal only) Total permanent disability of the loan taker due to accident (medically certified) Sum Insured: 100% of the initial loan amount from which: The MFI receives the outstanding loan balance The micro-entrepreneur s family receives the difference between the initial loan amount and the outstanding loan balance Avg. 0.6% of loan amount (depending on risk characteristics of the insured group) USD 3 per loan loans run for an average of 12 months with an avg. loan size USD

58 19. West Africa & Egypt: Credit Life B. Product Assessment 1 Assurance Décès Product: Ranking Emprunteur 2 Rationale / Comments Commercial offer provided by A Allianz Applied B Offered in developing countries C Min. 80% of people reached are from low-income segment Burkina Faso, Cameroon, Egypt, Ivory Coast, Madagascar and Senegal are all developing countries according to World Bank. The vast majority of insured are low income microentrepreneurs. This can be seen from their average loan size of USD 540 (data from Cameroon and Ivory Coast not included) Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development Voluntary opt-in (), voluntary opt-out () or compulsory (-) Customer education and feedback mechanisms in place Simple product specifications (e.g. pre-underwritten, few exclusions) Strong measures to ensure low transaction costs - None - - Death is a significant risk and there is a direct payout to the family (after deduction of the loan balance). Coverage of HIV or diabetic entrepreneurs facilitates their access to credit. Accidental disability risk is less significant A market and demand study was done. Product design and education materials were pilot tested with microentrepreneurs The product is compulsory for the credits of all MFI partners The MFI s credit officers are trained to orally explain the product to their clients, but no local language material for the customer. Regular exchange on customer complaints between MFIs and the broker (Planet Guarantee) No pre-underwriting. Only 3 exclusions (suicide, radiation, war). No medical exclusions. Simplified disability definition and easy claims documentation The mandatory underwriting-free group insurance approach lowers transaction costs. Most processes are outsourced to the MFIs and the broker (Planet Guarantee) which operate on lower costs than Allianz Overall ranking C. Product Brochure: not available 1) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 58

59 20. West Africa: Crop Index A. Product Specifications Product name (generic or marketing name) Product type (e.g. life insurance, assistance, savings) Assurance Récolte Sahel (Sahel Harvest Insurance) Index insurance Company name Allianz Africa and local subsidiaries Country Burkina Faso and Mali Distribution partner type (e.g. MFIs, banks, coops, retailers) Launch date (and stop date if any) Microfinance Institutions (MFIs), banks, agricultural cooperatives and agro-dealer networks 1 June sentence product description Covers outstanding loans of smallholder farmers; claims are triggered automatically if the rainfall is insufficient for proper growth of the farmers crops (corn or cotton) Group or individual product Group Voluntary opt-in, opt-out or compulsory Covered risks & benefits / sum insured Premium range (min, max) Avg. premium / year (annualize if necessary) Compulsory If evapotranspiration index 1 below 54 58% (depending on crop and region), i.e. total crop failure: Full coverage of outstanding loan amount If evapotranspiration index* between approx 65% and 54 58%, i.e. partial crop failure: Partial coverage of outstanding loan amount 10 12% of loan amount, depending on crop and region USD 27 per loan; avg. loan size is USD 235 (avg. loan duration: 3.5 months) Annualization not applicable because planting season only lasts 3.5 months Other comments Only sold in a 4-6 weeks sales window before planting season Expansion to more markets and crops types is planned 100% of the risk is reinsured by international reinsurance partners Developed and distributed in cooperation with Planet Guarantee Additional resources MILK Doing the Math Brief no 35 (Microinsurance Centre 2015) 1) Evapotranspiration is the sum of evaporation of water from plants and soil. This index is independently measured by third parties using satellite data. 59

60 20. West Africa: Crop Index B. Product Assessment 1 Product: A Assurance Récolte Sahel Commercial offer provided by Allianz Ranking 2 B Offered in developing countries C Min. 80% of people reached are from low-income segment Rationale / Comments Applied. The risk of insufficient rainfall in the insured areas is high. This is why the premium rate is also relatively high at around 10-12% Burkina Faso and Mali are low income countries according to World Bank and hence grouped under developing countries The vast majority of insured are low income farmers. This can be seen from their small farm sizes (avg. 1.3 ha) and their low avg. loan size of USD Significant contribution to improving low-income people s lives End-customer receives other tangible benefits (e.g. discounts, lottery etc.) End-customers involved in product development - None Low rainfall is a great risk for farmers. Outstanding loans are hard to repay when harvests fail. The product addresses this and eases access to credit Extensive market and demand study before product development. Product and education materials were pilot tested with a small number of farmers. 4 Voluntary opt-in (), voluntary opt-out () or compulsory (-) - Although the product can be offered on a voluntary basis, virtually all current distribution partners have made coverage mandatory for their agro-loans 5 Customer education and feedback mechanisms in place Intensive training of distribution channels and their field representatives. Raising of awareness through posters, radio, film. However, no access to a hotline or systematic feedback mechanism 6 Simple product specifications (e.g. pre-underwritten, few exclusions) No underwriting and no exclusions. Conceptually, the index is straightforward. But the exact technical definition and measurement method is complex. The product therefore requires in-depth explanation 7 Strong measures to ensure low transaction costs The (mandatory) group insurance approach lowers transaction costs. The claims process is simplified by the index as it allows automatic triggering of claims. Reinsurance coverage is essential and needs to be administered Overall ranking ) See our website for a full explanation of our assessment methodology 2) For knock-out criteria A-C: or ; for criteria 1 7: - (0), (1) or (2) 3) Average of criteria 1 7. Minimum 0.0, maximum 2.0. Note: A high ranking is only an indicator for compliance with Allianz Emerging Consumers values, not an indicator for actual business success 60

61 20. West Africa: Crop Index C. Product Brochure Flyer examples 61

62 20. West Africa: Crop Index C. Product Brochure Inside Personal Accident only. No brochure for Motorcycle component. Product brochure from Mali 62