Ppt on Micro Ins

8/4/2019 Ppt on Micro Ins.

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PRESENTED BY

KULDEEP SHARMA


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Introduction Micro insurance models

Distribution channels

Conclusion


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A micro insurance product in general insurancewould cover health,hut,livestock/tools orinstruments, personal accident either on individual

or group basis and crop insurance. Life insuranceproducts are available for a maximum period of 15years.

Minimum and maximum sum insured are

prescribed in both products. A very important feature is that life insurers and

general insurers are allowed to have a tie-up to selleach others products.


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The nongovernment organizations, self-help

groups and micro finance,institutions can beappointed by the insurers to sell micro insuranceproducts,as agreed.The normal distribution

channels e.g. agents, corporate agents andbrokers can also distribute these products.

All insurers have to impart 25 hours of training.

All micro insurance products have to be cleared

by the authority. These products are be delivered in local language

to the policy holders.


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Direct Marketing by the insurancecompany

Partner-agent model

De-linked model

Service Provider Model


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Identification of clients, selling of policies,collection of premium, receipts of claimsand settlement of claims etc., all are doneby the insurance companies

Outreach to provide micro insurance to poorthrough this model has been very limited


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Approved intermediary organisations act asinsurance agents.

Identify the customers, negotiate withinsurance companies about the adequacy ofproducts and premium rates to be paid,collect the premium

Assist in clients in claim processing and

settlement

Dominant model


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Community based insurance facility whereNGO/MFI or federation of the groups act asinsurer

Coverage of risk remains with the insurer

Sum insured, design and pricing of products,adverse selection, collection, claimverification and settlement data collectionand maintenance, assessing clientsatisfaction etc are undertaken internally by

the insurer


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NGOs generally provide basic health carefacilities to the rural population sincenecessary amenities were simply not

present in their area of operation. Insteadof premium, the service providers chargea membership fees to partly cover theircosts


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Agents Regional Rural Banks Cooperative Banks SHGs & their Federations NGOs & MFIs Post Offices Internet & Rural Kiosks & Rural Knowledge Centers


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Prime channel for insurance distribution inurban areas

Trust of the company & customer must

Knowledge of different products

Postman,School teacher, shopkeeper, gramsevikas, gram sahayaks

Training & educating poses a challenge

Not an optimum channel as 42 % of

600,000 villages have population of lessthan 500


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177 RRBs together with14,150 branchescover 516 districts and serve a client baseof close to 62.70 million

RBI has permitted RRBs to undertakeinsurance business as corporate agentwithout risk participation

Chitradurga Gramin Bank has -in closecooperation with the NABARD GTZ-Project-introduced a new deposit scheme for SHGs

called Rakshith Savings Bank Scheme intie up with LIC and UIICo. Ltd


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ST structure comprises of 30 SCBs, 367 DCCBsand over 112,309 PACS RBI has allowed scheduled licensed SCBs andlicensed DCCBs having a networth of Rs. 500

million to undertake insurance business ascorporate agents without risk participation Given their poor governance structures it is

unlikely that they would emerge as efficient

distribution channels


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1.6 million SHGs comprising 24.1 million familiesare linked to banks Rapidly growing year after year Many SHG promoters have formed federations Federations provide both financial and nonfinancial services Federations promoted by DHAN Foundation areparticipating in Mutual Insurance Scheme as well as

intermediary


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Large number of NGOs and MFIs are involved insocial as well as financial services intermediation Out of 61 sample MFIs studied by Sa-Dhan 34 wereproviding insurance services While all 34 MFIs provided life insurance products,only 9 facilitated non life insurance products The most significant range in amount of cover wasin the category of Rs.10,000 and above


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There are about 129,000 rural post offices. Post Office itself is offering insurance

products to the poor

Its efficacy as an intermediary channel needsto be explored


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Using net for transactions has been catching up inurban areas. Many banks provide online banking Most of the insurance companies have productinformation and/or illustrative tools on the web In rural areas too rural knowledge centers are beingset up to bring information close to the people. Theinsurance companies can use these centers to create

awareness about insurance Can only be enablers for the human channels


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micro Finance sector is in evolving phase Innovations are required at all stages for products,in pricing policy and in delivery channels Success of marketing micro insurance depends onunderstanding the social and cultural needs of thetarget population Clients should also receive price differentials for

using different channels Groups & their promoters can provide idealplatform to kick start the micro insurance


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Thank you

Documents

Ppt on Micro Ins