Good partnerships sustain microinsurance programs
Microfinance Focus, December 6, 2011: Insurance providers in consultation with Pacific Financial Inclusion Program (PFIP), that provides financial services to low-income households, gathered last week to discuss the challenges to micro insurance development in Fiji. From the discussion, having good partnerships have been identified as one of the key factors in the success of a micro insurance program.
This session follows from a recent workshop presenting the results of the micro insurance demand survey. The insurance providers identified six major challenges or constraints in introducing micro insurance in Fiji, these include: product design and insurance risk management; marketing strategy; efficient claims payment; premium collection; client education and distribution, i.e. reaching the target market.
To address the issue of distribution the group then explored strategic partnerships models. Successful global case studies where partnerships between insurer and distribution channels such as mobile money providers, agents etc. were evaluated and discussed as possible opportunities for the insurance providers in Fiji to emulate.
Sanjeev Jain, a representative from Life Insurance Corporation of India, indicated, “the importance of participation of intermediaries and partners needs to be provided impetus. A close liaison and understanding, as well as objective alignment between the partnering organizations shall not only make the project successful but also help the society at large”.
A key challenge in micro insurance is selling achieving scale. Barry Maher, an ILO micro insurance Fellow based in Fiji said, “with assistance from PFIP and its partners, the insurance providers can now look to enter into partnerships with organizations with outreach into the low-income communities. They can look to leverage the networks and relationships these partner organizations have with their clients in order to achieve such scale”.
