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The best of 2017

Emerging Insight #:


Date of Release:

  February 15, 2018


  Improving value


  The Facility

Three top Emerging Insights from last year

How did one insurer grow its microinsurance business from 0 to 18 million policies over a decade? What can we learn from regulation in Peru and the Philippines? How can data analytics improve claims experience? In 2017 our Emerging Insights answered these and many other questions. Catch up on three of our top insights from 2017 below.

  1. The insurer that pays claims. When Pioneer started offering insurance for low-income households in 2007, it had one distribution partner. Today, it works with almost 100 institutional partners, had issued more than 18 million policies in 2016, and generated Php 936 million pesos (USD 19 million) of premiums. Pioneer attributes much of that success to its efforts to establish itself as “the insurer that pays claims”. It did so through a dedicated microinsurance unit with its own underwriting and claims-settling authority, which could develop its own claims standards and processes to respond to the realities of the market segment.
  2. Eliminate the easy way out. In Peru, multiple regulatory frameworks for inclusive insurance led to regulatory arbitrage, with 77 per cent of inclusive products remaining outside the microinsurance regulation. To promote consistency and mitigate regulatory arbitrage, an overarching regulatory framework for microinsurance may be more effective. For example, in the Philippines the regulator published an overarching regulatory framework for microinsurance and all subsequent microinsurance regulations (including over 20 different circulars and other legal instruments) were anchored into this framework.
  3. Finding the needle in the haystack. MicroEnsure uses data analysis to identify patterns in claims. One analysis found that the top reason for claims rejections related to claimant ineligibility. To reduce rejections, MicroEnsure implemented new customer education strategies and changed some claims requirements. On an average basis, the monthly ratio of rejected claims compared to paid claims decreased by approximately 15-20 per cent.