Scale and Efficiency through Innovation. Pranav Prashad Microinsurance Innovation Facility International Labour Organization 15 October, 2012

Transcription

1 Scale and Efficiency through Innovation Pranav Prashad Microinsurance Innovation Facility International Labour Organization 15 October, 2012

2 The Hurdles in Micro Business Infrastructure Accessibility Education & level Reach Information Gap Illiterate Populace Information Gap Accessibility & Reach Infrastructure Foolproof Identity

3 Business perspective Twin issues of building scale and reducing costs (efficiency) Presents a challenge for distribution and claims servicing Partner selection Training for insurance selling Customer education Customer enrolment Premium collection MIS & policy admin Claims recording Claims settlement Renewals Essentials in microinsurance and requires significant ability to control and adapt...technology can support these processes Ultimately the success depends on how people use technology based interventions. amplifies both good and bad business practices

4 Technology playing an increasing role: enabling efficient delivery Multi-pronged service model Radio Frequency devices Hand held machines Satellite imaging Smart Cards /Biometrics Weather stations Technology Innovations Combine with Mobile phones & data management devices Identification, enrolment and Low ticket premium collection

5 RFID for identification and claims control

6 Manual plastic tagging Plastic (polyurethane) tags insertion

7 Cattle Insurance: Technology intervention for identification and fraud reduction Plagued by fraud ( % claims ratio) Ear tags & vets, distribution partners Solution: Radio Frequency Identification Devices also push re-engineering processes

8 Identifying insured cattle fraud reduction & faster approvals the lower claims ratio ( about 40%) 90% of RFID product clients were very satisfied with the product, since no impact on cattle productivity Premium rationalisation for RFID linked product to 3% of the sum assured lower than earlier for the traditional ear tag product

9 Tagging and identification

10 Identifying insured cattle fraud reduction & faster approvals Faster claims potential demonstration effect to include all owned animals!

11 Uncontrollable weather managing impact

12 Who are the real players?

13 Partner engagement

14 Protecting assets Quenching thirst Drought stricken cow

15 Satellite images of grassland availability

16 Managing crop risks through index insurance

17 Comprehensive Customer engagement Customer registration information on mobile phone data updates too

18 Hand-held PoS devices for outreach expansion

19 Hand Held Technology Platform / PoS devices Enhanced Reach and accessibility On the Spot policy and claims processing Storage of various programs on same devise Reduce fraud in the system auditable trail MIS and Data Management Reduce Transaction time and timely disbursement of money

20 Insurance sales stands inside retail outlets: Bradesco Certificate Instant issue upon sale Policy number printed can be used for claims

21 Rural retail outlets for insurance outreach Multiproduct purchases Customer spends time in the outlets which can be utilised for insurance awareness and conversion Present in villages catering to multiple customer needs Need to train in-shop assistants for insurance Haryali Kisan Bazar with ICICI Prudential HDFC Ergo

22 Taking training to the field on wheels Partners during training session Dedicated training team

23 Success is defined by the customers Closing thoughts...applying lesson learnt What matters to them is the experience, and that includes both sales and claims service experience Aids in building trust cornerstone of all relationships Almost every process is different in along the value chain: Distribution Communication Customer awareness different from customer education Premium collection Claims handling... Not only fair but seen to be fair!... Encouraging initial results of disruptive interventions Can regulations facilitate faster adoption...

24 More information on these projects at Facility website: Thank You