The microinsurance value chain includes stages for product development, promotion, sales, enrolment, premium collection, claims, and renewals. Facility partners have implemented numerous innovations in each of these processes to improve efficiency, reduce costs, and enhance the value proposition for clients.
Clients must be able to easily pay premiums, or they may not buy a product even when they are convinced of its value.
Repeated communication and reminders, tangible benefits, and easy re-enrol and payment procedures are key to improve renewal rates.
Claims payment is the most important moment for microinsurance – it is when insurance becomes tangible for the client.
Success in enrolment requires simple and quick procedures, convenient place and timing, and a trustworthy interface for the client.
Training, incentives, and monitoring of the sales force are indispensable for selling microinsurance effectively.
A promotion campaign needs to communicate benefits, address barriers that may prevent the audience from purchasing, and demonstrate value relative to the competition.
A systematic product development process includes market research, product design, pilot testing, rollout, and monitoring.