Issue Digest-Microinsurance

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8 | Issue Digest: January 2013 05 Outlook The table below depicts the microinsurance industry and its changing landscape. Distribution Key Highlights Products Endowment products • Low sales volume • Poor persistency • Servicing challenges • NGOs 2001–03 Infancy stage Credit life and retail products • Bundling with micro credit • High-value sales to offset operational expenses • Regulatory guidelines for microinsurance • Supply chain innovations • Technology innovation to improve the policy administration and claims process • MFIs • NGOs • Regional Rural Banks (RRBs) • Co-operatives • Retail chains • IT kiosks 2004–08 Startup stage Source: ICICI Microinsurance presentation and KPMG analysis Credit life, savings linked plan and retail products • Rural channel upscaled • Unit Linked Insurance Plans (ULIPs) savings plan launched • Technology usage for increased efficiency during client interface • MFIs • NGOs • RRBs • Co-operatives 2009–11 Evolving stage • Strong technology usage • Consumer awareness • Flexible savings and term products • Collaborating with larger banks on financial inclusion projects • Public private partnership • RRBs • Producer companies • Banks • MFIs 2011 Growth stage Saving and wealth accumulation products • Focused approach by insurers, largescaleneedbased programs • Products providing risk cover against health, agriculture, house and education to grow • Advance technology-led distribution • Governmentsponsored programs • RRBs • Banks • MFIs • NGOs 2012 Way forward With the risk management needs of four billion low-income people largely unmet, the potential market for microinsurance is vast. In addition, for insurers, the segment is expected to become a meaningful avenue for growth going forward. However, the role of the government is very important in this sector as there is a growing need for a supportive regulatory framework that facilitates broad-based insurance growth. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
KPMG information Further reading Microinsurance issue page Insurance mega trends The Intelligent Insurer Global Climate Change and Sustainability FS High Growth Markets workstream Protecting the seeds of growth – the Rise of Microinsurance - article in September 2010 Frontiers in Finance Click here for more Thought Leadership How KPMG firms can help International Development Assistance Services • In today’s economic climate, the developing world faces a number of critical challenges: strengthening capacity in all areas, enhancing accountability of states towards their citizens and developing systems to deliver public services. With local expertise in each country, KPMG is one of the most experienced providers of professional services to the public and development sectors in countries and regions where economies and finances are emerging. Climate Change and Sustainability Services • Today, climate change and sustainability issues are rising to the top of corporate agendas. Business is engaged; global trends and stakeholder demands have seen to that. Energy pricing and security, natural Issue Digest: January 2013 | 9 resource pressures, population growth, lifestyle changes, and consumer preferences are compelling companies to act. Even those who are following the global climate change debate from afar understand that their key stakeholders are already focused on these issues and the need to capitalize on them. As a result, there is a new clarion call for executives: leverage sustainability as a strategic lens on business operations – to enhance processes, grow revenue, manage risk, strengthen reporting, optimize costs, and spur innovation. Business Performance Services (Margin Enhancement Services) • Business Performance Services helps clients measure enterprise performance and improve business outcomes. We put a strong emphasis on monitoring and assessing strategic and operational risk. We understand the role of innovation in achieving a competitive advantage. Financial Risk Management (Market Risk) • Evaluate existing risk management and trading control frameworks; identify any weaknesses; offer practical and appropriate advice on how to strenghten the controls. • Preparation for internal Value-at-Risk (VaR) model approval. • Quantitiative validations of both VaR and derivative pricing models. • Advice on market-to-market and fair value appraisals; prepare existing portfolios for hedge effectiveness testing to comply with IAS requirements. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
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Page 3 and 4: 01 What is microinsurance? Microins
Page 5 and 6: 02 Products and innovations Insurer
Page 7: 04 Regulations Microinsurance regul
Page 11 and 12: Notes Issue Digest: January 2013 |

Issue Digest-Microinsurance

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