A global survey of passive microinsurance distribution channels

Transcription

1 A global survey of passive microinsurance distribution channels Authors: Herman Smit, Anja Smith & Doubell Chamberlain Presentation prepared for the International Labour Organization s (ILO) Microinsurance Innovation Facility September 2009

2 Table of contents 1..Introduction 1.1 Research methodology 1.2 Outputs for phase one 2..Defining passive distribution 2.1 Strictly versus semi-passive models 2.2 The passive continuum 3..Passive distribution models in the world 3.1 Client aggregators identified 3.2 Underwriters involved in passive models 3.3 Type of insurance cover identified 4..Interesting models identified 4.1 Seguros Azteca and retailers (Mexico) 4.2 Kenya Orient insurance and cell phone distribution (Kenya) 4.3 Colseguros and retailer Carrefour (Colombia) 4.4 Philam Life and cell phone distribution (Philippines) 4.5 Mapfre and retailer Casas Bahia (Brazil) 4.6 Hollard and aggregators (South Africa) 4.7 Metropolitan Cover2go and aggregators (South Africa) 4.8 Max New York Life and retail aggregators (India) 4.9 Protecta and Arcángel pharmacies (Peru) 5..Passive models on which we found limited information 6...Emerging themes and issues in passive distribution 7...Recommendations for phase 2

3 1. Introduction Background Cenfri was commissioned by the International Labour Organization s (ILO) Microinsurance Innovation Facility (MIF) to conduct a global scan, and selected country analysis, for passive distribution models. This survey, the first part of a two stage study, is aimed at identifying interesting regions for the further study of passive distribution models. Purpose Conduct a global scan to identity countries where passive models are used to distribute microinsurance products. Identify interesting models and countries for further study.

4 1.1 Research methodology Review of existing research. Internet scan for passive distribution models. Telephonic interviews with commercial and noncommercial microinsurance expert from across the globe.

5 1.2 Outputs for phase one Conceptual framework for mapping exercise (submitted); Interview list (initial list submitted); List of passive models identified (list submitted); South African case studies in draft format (current deliverable); and Final summary report in PowerPoint presentation (current deliverable).

6 2. Defining passive distribution General characteristics No agent push: Absence of traditional intermediary such as agent or broker that actively pushes, sells or promotes insurance products. Scale through concentration: Ability to achieve scale through targeting large client concentrations, i.e. specific non-insurance client groups (e.g clients of retailer cell phone company, utility company). Transaction platform: Sales channel typically doubles as premium collection platform, e.g. adding premiums onto utility bill. Standalone voluntary product: Models distribute voluntary insurance products sold on an opt-in rather than opt-out basis. Inbound: Generally rely on client to initiate transaction after exposure to available marketing material, e.g. pamphlets, posters, information on utility bills, etc. Exclude more traditional models such as bancassurance and MFI-linked distribution, with focus on identifying alternative, innovative models.

7 2.1 Strictly versus semi-passive models Defining Characteristics Strictly passive model are models that meet all of the following criteria: 1) Standalone: product is not bundled with another product or service. 3) Opt-in: client chooses to obtain insurance cover rather than deciding not to purchase the insurance ( opting out ). 4) No advice or sales nudge at point of sale. 5) Voluntary: the product is not compulsory. If one or more of the above criteria is not met, the product would be considered. semi-passive or an active sales model (depending on the number of criteria not met). For all passive models (strictly or semi-passive), the most important defining characteristic is the absence of an agent push (although there may be light product promotion). It is also important to note that the absence of agent push does not imply the absence of marketing material.

8 2.2 The passive continuum Strictly/purely Passive Sale process Semi-passive Passive continuum* Active sales Active agent or Broker sales process Standalone x x x Passive descriptors Client concentration x x Opt in x No prompting x x x Voluntary *Some of the models plotted on this continuum are covered in greater detail later in the presentation.

9 3. Passive distribution models across the world India Mexico Colombia Kenya Thailand Philippines Peru Brazil South Africa Chile

10 3.1 Client aggregators identified Region Aggregator type Example Region Aggregator type Example Latin America Utility companies Codensa (Colombia) Cemig (Brazil) Retailer Fixed line operators Gupo Elektra (Mexico) Casas Bahia (Brazil) Falabella (Chile) Sears (Mexico) Archángel pharmacy (Peru) Carrefour (Colombia) Telefonica (Brazil) Telmex (Mexico) Southeast Asia Retailer Carrefour (Thailand) Payment system Cellular* (Philippines) Asia Retail 3i Infotech I-SERV (India) Cell phone network provider Vivo (Brazil) Africa Retailer Shoprite (South Africa) Pep (South Africa) Edcon (South Africa) Payment systems Wiredloop (South Africa) Take it Eezi (South Africa) Cellular* (South Africa) * the use of cell phones in obtaining insurance is only included in this table for illustration purposes and is not considered a formal client aggregator in the models we have identified as passive.

11 3.2 Underwriters involved in passive models Region Example Region Example Latin America Mapfre (Colombia) Southeast Asia Philam Life (Philippines) Seguros Falabella (Chile) ACE (Thailand) Colseguros (Colombia) Asia New York Life (India) Seguros Azteca (Mexico) Seguros Inbursa (Mexico) La Positiva (Peru) Protecta (Peru) Africa Kenya Orient (Kenya) Metropolitan Cover2go (South Africa) Hollard (South Africa) Union Life (South Africa) Old Mutual (South Africa)

12 3.3 Type of insurance cover identified Region Type of cover Region Type of cover Latin America Accidental Death Asia Accidental death and disability Hospital Cover Household structure and content Cell phone insurance Extended warranties Funeral Life Credit Life Business structure and content Africa Life insurance Funeral Accidental death Household content insurance Extended warranties Credit life Cell phone insurance Legal insurance Southeast Asia Critical illness (female cancer & heart attack products) Accidental death Auto insurance

13 4. Interesting models identified During our scan, we obtained various levels of information on different models. This section deals with models on which we found more detailed information. Basic information on these models and their structure are provided in the slides that follow. The models include: 1. Seguros Azteca and retailers (Mexico) 2. Kenya Orient and cell phones (Kenya) 3. Colserguros and retailer Carrefour (Colombia) 4. Philam Life and cell phones (Philippines) 5. Mapfre and retailer Casas Bahia (Brazil) 6. Hollard and aggregators (South Africa) 7. Metropolitan Cover2go and aggregators (South Africa) 8. Max New York Life and retailer aggregators (India) 9. Protecta and Arcángel pharmacies (Peru)

14 4.1 Seguros Azteca and retailers (Mexico) About the underwriter: Seguros Azteca started operations second quarter of 2004 and forms part of larger Grupo Salinas conglomerate (which includes the popular furniture and appliance stores, Elektra and low-income bank, Banco Azteca). Azteca collected US$125 million in premiums in 2007 and specifically targets the low-income market. About the client aggregator: Seguros Azteca makes use of Elektra stores, pharmacy and other 3 rd party retailers to distribute its insurance offering. Grupo Elektra was founded in 1950 and has more than 1,000 stores across Mexico, Guatemala, Honduras and Peru. About the product: Product takes the form of a plastic packet - which captures the product information and policy document - that can be bought in store. There is no agent involved in the sales process. The policyholder will then phone the Azteca call centre to activate policy, obtain producty information and personalise the cover levels to suit his/her needs. The once-off payment at the cashier serves as total premium for the full year term of the policy. Claims are handled directly by Seguros Azteca via a call centre and paid out through Banco Azteca. Policy take-up: Product is still in pilot phase with approximately 2,000 policies sold per week. Cash premiums Standalone Optin No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors Voluntary

15 4.1 Seguros Azteca and retailers (cont..) Products HogarCard (Home insurance) Household content insurance VidaCard (Life Card) Accidental Death cover Infarto (Infarct) Dread disease cover Heart attack Mujer (Women) Dread disease cover Breast and cervical cancer Tu Negocio Protegido (Your protected business) Business insurance Fire, robbery etc.

16 4.2 Kenya Orient Insurance and cell phone distribution(kenya) About the underwriter: Kenya Orient Insurance Limited was incorporated in 1982 and holds a general insurance licence. Kenya Orient s gross premiums for 2007 was US$3.781m (SH283.4 m). About the product: The Safari Bima accidental death and disability cover product can be obtained in one of two ways: By sending your national identification number, cell phone number and name of beneficiary to a premium rated short code. Information on policy activation can be found in various forms of advertising including posters and pamphlets in Kenya Orient insurance offices. The premium will be subtracted from your cell phone account or prepaid airtime. Once you have received a confirmation SMS with your policy number you will receive cover of US$1,334 (KES100,000 ) for a period of 24hours. Alternatively, a scratch card can be purchased providing cover of US$1,334 (KES100,000 ) for either one week or one month cover. The scratch cards can be purchased either at Kenya Orient insurance offices or field agents. The policy is activated by sending a text message (SMS) from your mobile phone containing the PIN number obtained from the scratch card, your national identity number and beneficiaries phone number. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors X X X Voluntary

17 4.2 Kenya Orient Insurance and cell phone (cont..) The product was launched in November 2008 and is targeted towards tourist, locals going on long distance trips during Easter and end of year activities. Safari Bima Accidental death and disability cover

18 4.3 Colseguros and retailer Carrefour (Colombia) About the underwriter: Colseguros is a subsidiary of German Allianz group and is the oldest insurance company in Colombia (founded in 1874). It offers both general and long term insurance products. Colseguros has been actively involved in the low-income market. About the client aggregator: Carrefour, a French retailer started operations in Colombia in 1998 and targets the low-income market through an adapted hypermarket format called Tintalito. Carrefour has 9,200 employees and more than 60 stores in 28 cities. About the product: Product takes one of two forms. It is sold by the cashier at the end of a normal sales transaction. The client can either request the insurance from the cashier, or the cashier could ask the client whether he would like to purchase the product. The policy document is printed at point of payment with only one cash premium for the duration of the cover. Policy cover is immediate and last for a set period (usually 30 days). Insurance can be obtained from an insurance desk in-store. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors X X Voluntary

19 4.3 Colseguros and retailer Carrefour (cont...) Products range includes accidental death insurance, medical assistance insurance, household content insurance, life cover in the form of monthly payments and life cover in the form of educational support to child dependants. Policy take-up to date has been relatively successful with 639,000 policies sold since the launch in November 2007.

20 4.4 Philam Life and cell phone distribution (Philippines) About the underwriter: The Philippine American Life and General Insurance Company (Philam Life) is the largest insurance company in the Philippines and a subsidiary of AIG. Philam Life was established in 1947 and sells life, asset and medical insurance policies. About the product: AKSItext is an accidental death policy. Cover is obtained by sending a text message (SMS) containing the individual s name, surname, birthday and physical address to a premium rated number. Information on the product is distributed via posters and advertisements. Cover commences 24 hours after receipt of the confirmation message containing the individuals policy number. Premiums are payable every 15 days and is automatically subtracted from available airtime (if pre-paid) or added to policyholders post paid bill. Claims are paid out directly from the Philam Life offices in cheque form and redeemable at any bank. We have been unable to obtain information on policy take-up since the product launch in late Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors X X Voluntary

21 4.4 Philam Life and cell phone (cont...) AKSItext accidental death

22 4.5 Mapfre and retailer Casas Bahia (Brazil) About the underwriter: Mapfre, a Spanish insurance company with local offices throughout Latin America, started its operations in Brazil in The Mapfre group is the 6 th largest insurance group in Brazil with 8 million customers. Mapfre offers a wide range of insurance products including both general(asset) and life policies. About the client aggregator: Casas Bahia was founded in 1957 and is the largest appliance retail chain in Brazil with 510 stores in more than 200 cities across Brazil. Casas Bahia focuses specifically on the low-income market and has 22 million active customers. About the product: Insurance product is obtained in-store at a cost of US$40 p.a. and consists of several components Financial protection, life insurance (double coverage in case of accidental death using public transport), hospitalisation cover, discounts on pharmaceuticals and a lottery ticket component Policy take up has been very successful since the launch in November 2008 with approximately 250,000 policies sold per month with a total of 2,500,000 active clients. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors Voluntary

23 4.6 Hollard and aggregators (South Africa) About the underwriter: Hollard, a holding company established in 1980, is South Africa s largest independent, privately owned insurance provider. Hollard operates as both a longand short-term (general) insurance provider. The low-income market is one of Hollard s key market segments. About the client aggregator: Hollard makes use of both formal and less formal retail distribution networks to service the low-income market. Hollard s fomal distribution networks include the Edcon Group, Pep clothing stores and the less formal, rural and urban vendor network, Take it Eezi. Edcon, established in 1929, actively targets the low-income market through its clothing retail chain stores, Edgards and Jet. Jet has 220 stores in southern Africa with the majority of them located in South Africa. Jet is a registered financial services provider and distributes insurance products from more than one insurer. Pep Stores, founded in 1965, actively targets the low-income market through its 1,159 clothing retail stores throughout South Africa. Pep, through a joint venture with Hollard, exclusively distribute insurance products underwritten by Hollard. Take-it-Eezi, a branded initiative of Sharedphone of its South African operations, makes use of an innovative SIM based point-of-sales (POS) terminals to provide formal and informal vendors the chance to sell cellular airtime, pre-paid electricity and insurance. Take it Eezi has more than 18,000 registered vendors throughout South Africa.

24 4.6 Hollard and aggregators (cont..) About the product: Hollard - Jet Insurance offering is linked to a Jet store account. Product offering is advertised in-store through posters, booklets and pamphlets. Insurance offering includes both asset and life insurance products. Credit life; Cell phone insurance; Accidental death and disability insurance; Funeral insurance; and Household content insurance. Insurance activation occurs in-store at the financial services desk, often when account is opened for the first time. Premiums are added monthly to policyholders Jet accounts. Policy take-up has been very successful since its launch in June We were unable to obtain exact numbers. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors x x Voluntary

25 4.6 Hollard and aggregators (cont..) About the product: Hollard Pep Product takes the form of a prepaid cell phone starter pack available off the shelf. The starter pack contains the policy card, policy document and any other information the customer might require about the product. Current product offering only include funeral cover. Product is purchased in store and cashiers captures policyholders name and surname. A call centre will contact the client within 48 hours to activate cover and register beneficiaries. Monthly premiums are payable in-store. Claims are settle directly with the insurance company. Policy take up has been relatively successful with more than 200,000 active policies sold since its launch in Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors Voluntary

26 4.6 Hollard and aggregators (cont..) About the product: Hollard Take it Eezi Product takes the form of a starter pack containing the policy number, document and relevant information on the product. The cover currently only includes funeral policies and can be bought directly from the vendor operator. The operator registers the policyholder through an innovative subscriber identity module (SIM) based point-of-payment system that conveys the information to the insurance administrator. A call centre will phone the client to register the client s beneficiaries and activate the policy. Monthly premiums are payable at any Take it Eezi vendor. Claims are settled directly with the insurance company. Policy take-up: Sales to date have been modest with only 2,000 active policies. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors Voluntary

27 4.7 Metropolitan Cover2go and aggregators About the underwriter: Cover2go is a division of Metropolitan Holdings limited which was founded in Cover2go was established in 2006 as an innovation hub and writes life insurance policy targeted to the low-income segment. About the client aggregator: Cover2go makes use of several non-agent based distribution channels. These include cell phone, retail (Shoprite) and vendor (Wiredloop) based distribution. Shoprite Holdings (LDT) started operation in It actively targets the low-income market through one of its retail supermarket chains Shoprite. Shoprite s South African operations consist of 309 stores nationwide. Shoprite is a financial service provider and does not exclusively sell Cover2go insurance products. Wiredloop is a vendor-based prepaid electricity and cellular airtime point of sales service provider. Wiredloop, a subsidiary of Sandulela International (Pty) Limited founded in 2003, has 1,200 registered agents predominantly in Gauteng, Western and Eastern Cape provinces in South Africa.

28 4.7 Metropolitan Cover2go and aggregators (cont..) About the product: Cover2go Shoprite Product takes the form of a starter pack containing the policy card, document and relevant product information. The product is available in store from counters located near the cashier. Cover2go only sells one policy (funeral cover with a built in no-claims savings component) using the Shoprite distribution network. The product is activated in-store at a specially dedicated counter, the Money Market counter. Individual must phone a call centre to register beneficiaries and dependents. Premiums are paid monthly in-store. Claims are settled directly with the insurance company and paid out into a nominated bank account. Policy take-up has been moderate with more than 6,000 active policies since its launch in October Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors Voluntary

29 4.7 Metropolitan Cover2go and aggregators (cont..) About the product: Cover2go Wiredloop Cover2go through Wiredloop offer a funeral policy that takes the form of a starter pack containing the policy number, document and relevant product information. Starter pack is purchased directly form the vendor. Vendor will activate the insurance by capturing the clients information using a GPRS enabled point of sales device. Monthly premiums can be paid at any Wiredloop vendor. Claims are settled directly with the insurance company. Policy take-up has been unsatisfactory since its launch in April 2008 and new product sales were discontinued during May Product has 400 active policyholders. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors Voluntary

30 4.7 Metropolitan Cover2go and aggregators (cont..) About the product: Cover2go cell phone distribution Accidental death cover is obtained by sending your name and national identity number to a premium rated short code. Individual is covered once a confirmation text (SMS) is received containing the policy number. Premium is subtracted from available airtime (if pre-paid) or added to the post-paid contract holder. Policy duration is 30 days and is non-renewable. Individual will have to buy a new policy every 30 days in order to enjoy continues cover. Claims are paid out in cash into a nominated bank account. Policy take-up has shown moderate success with more than 3000 policies sold since its pilot and launch in April However, it should be noted that Cover2go does not actively market this product. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors x x Voluntary

31 4.8 Max New York Life and retail aggregators About the underwriter: Max New York Life Insurance Company Limited is a joint venture between Max India and New York Life Limited incorporated in It has a client base of more than 2.65 million customers and 11,000 employees. During 2007, the joint venture collected US$870 million in premiums. Max New York sells life insurance products and specifically target the low-income market. About the client aggregator: Max New York makes use of various telecommunications, neighbourhood grocery and appliance stores (formal and informal) in the sale of its insurance policy Max Vijay. About the product: Max Vijay is designed to be a flexible premium, life insurance product with a built in savings component. Insurance takes the form of a box available in-store. The box contains a policy description and application form. Once the individual has filled in the required application form he/she is presented with an acknowledgement of purchase document. The policyholder will have to return to the shop at a later point in order to pick up the official policy document. The product is not explained or actively sold to the individual in-store and is specifically targeted to low-income earners with non-fixed income. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors x Voluntary

32 4.8 Max New York Life and retail aggregators (cont..) Policy take up since product launch in July 2008 has been relatively successful. However, Max New York is planning on increasing marketing efforts in order to promote sale of the product through its retail distribution network in the coming months.

33 4.9 Protecta and Arcángel pharmacies (Peru) About the underwriter: Protecta is a fairly new entrant in the Peruvian insurance industry and started operation in January 2008 and is partly (16.5%) owned by the International Finance Corporation (IFC). Protecta actively targets the low-income market. About the client aggregator: Protecta currently make use of one drugstore retail distribution channel, Arcángel pharmacy group. Arcángel has a presence throughout the country with more than 180 stores. About the product: Mi Familia Arcángel life microinsurance card can be purchased in any Arcángel pharmacy store. Product is sold by an agent (we do not currently carry knowledge of the agent s exact function in the sales process) in the store. The policy takes the form of life cover(natural and accidental death), disability cover and primary medical care benefits at the Arcángel wellbeing centre with additional policy membership benefits that include discounts on medicines, clinics, restaurants etc. Product has only been launch very recently and policy take up is expected to be significant. Protecta management expect to sell in excess of 10,000 policies per month. Cash premiums Standalone Opt-in No verbal disclosure at point of sale Use of client aggregators Product only distributed through passive channel Model descriptors - x Voluntary

34 5. Passive models on which we found limited information We found very limited information on the models below and therefore do not cover them in detail: Country Underwriter Aggregator Type of cover Brazil Mapfre Utility company Cemig Home structure and content Brazil Mapfre Cellular provider - Vivo Loss, theft and damage of cell phone Brazil Mapfre Retailer Carrefour Extended warranties Brazil Mapfre Fixed line operator Telefonica Unemployment and accidental death cover Chile Seguros Fallabela Retailer Fallabela A range of insurance products Mexico Seguros Azteca Retailer - Elektra Life insurance linked to credit* Mexico paralife Pawn shop Monte de Piedad Life insurance Peru La Positiva Water associations - Colombia AIG Utility company - Gas natural - Turkey - British Petroleum (BP) Accidental death Thailand ACE Retailer Carrefour Auto insurance *This product is not the same as the stand alone product Azteca sells through Elektra and other 3 rd party retailers.

35 6. Emerging themes and issues in passive distribution Quest for lower distribution costs. Insurance companies view passive distribution models as a lower cost distribution alternative to more expensive traditional models. However, while it may make financial sense (in the short term) to use these less expensive distribution channels that provide minimal information, over the long term distribution strategies that rely on more information provision may actually be more cost-effective by minimising policy lapses. Multi-nationals asserting their power. Several passive distribution models stem from either multi-national retailers (e.g. Carrefour) or multi-national insurance companies (e.g. Mapfre) taking a similar distribution approach in several countries. Multi-pronged distribution strategies. Some client aggregators, e.g. utility companies, are using multiple distribution strategies, with passive distribution being only one of their strategies. Intermediary regulation. For at least one country, South Africa, the design of certain passive distribution models are a direct response to expensive and restrictive intermediary regulation. These models have been designed in such a way as to minimise the need for the provision of information or advice by registered insurance intermediaries.

36 6. Emerging themes and issues in passive distribution (cont..) Passive models and level of development. Passive distribution models tend to be found in developing middle-income countries (or high-income countries) with well-developed financial, retail, utility and telecommunications networks (a result of the level of development achieved). Recency of models. Most new passive retailer distribution models were launched during the last 2 3 years, with 3 Latin-American models (Seguros Azteca, Mapfre & Cassas Bahia and Protecta and Arcangel) launched during the last 6 months. Brand trust. Client aggregators such as retailers are increasingly realising the value of their brand trust and converting this into additional income by offering financial products such as insurance. For some models, e.g. the Pep-Hollard model, this has implied that the distribution partner (for this example, low-income clothing retailer Pep) has needed to be a strong countervailing force to the underwriter s profit incentive to ensure their clients are provided with value-for-money. A presence of brand trust also potentially implies brand risk if the distribution partner does not proceed cautiously in the relationship and assists in creating a value-for-money product.

37 6. Emerging themes and issues in passive distribution (cont..) Higher than expected mortality rates. Although not clearly highlighted in the model descriptions, relatively new passive distribution models in South Africa have been experiencing higher than expected mortality rates. It is not clear whether this is due to antiselection or a limited understanding of mortality rates in the low-income markets they are serving. In some cases, this has prompted adjustments to the design and pricing of products a while after their release. Technology. The emergence of models such as the Philam Life Aksitext model, the Metroplitan Cover2go cell phone model and the Cover2go and Hollard models that rely on vendor-based distribution via innovative POS devices, emphasise that insurers are increasingly turning to technological devices to distribute their insurance products. However, the level of technology employed in different models vary. The management thereof also differs. In the case of cell phone distribution and premium collection, the insurer relies on a technological advice owned by the client, while the vendor-based distribution models rely on POS devices owned and managed by the venodor, a third-party.

38 7. Recommendations for phase 2 Suggested countries and regions for further study: Latin America Brazil: A number of "pure passive" models have been identified in Brazil, including products being distributed through retailers (Casas Bahia) and through utility and telephone companies. Some experts interviewed during the course of the study indicated that passive models, especially those selling insurance products to the clients of utility and telephone companies, are a very common phenomenon in Brazil. Mexico: Information on at least two passive models (Seguros Azteca and Seguros Imbursa), with information on the existence of other retail models (e.g. Sears). Mexico is an interesting country with regards to microinsurance as it recently created microinsurance-specific regulation for intermediation and this may provide us a good perspective on how (if at all) intermediation regulation has impacted on the existence and development of passive models. Colombia: Two passive distribution models (Carrefour and Condensa) were identified in Colombia. The scale of these models could justify further research into the contributing success factors.

39 7. Recommendations for phase 2 (cont..) Suggested countries and regions for further study: East Asian country - Philippines: We only found concrete evidence of one passive model in the Philippines, Aksitext, but from conversations with Zurich Insurance it seems passive models are prevalent in the East Asian context. Also, Philam Life have used informal vendors (referred to as sari-sari stores) in the past to distribute accidental death insurance. The failure and success drivers for this distribution model could be mapped and compared to that of the South African vendor-based models. Suggested models for further research: Kenya Orient Insurance: Although it seems unlikely that more passive models will be identified in Kenya, further study of Kenya Orient Insurance s accidental death and disability policy could shed light on the possibility of passive distribution models emerging in Africa, outside South Africa. Multi-national retailers and underwriters (Carrefour and Mapfre): Case studies of Carrefour and Mapfre s various passive distribution models and approaches in different countries could highlight the considerations in taking a multi-national approach to insurance distribution.