In developed countries, the penetration of insurance is high and markets often appear saturated. In contrast there is a large potential market of between 1.5 and 3 billion insurance policies in emerging countries, and only 5 percent of these people are so far covered. Previously the growth rate in developing countries was over 10 percent per year and predictions go as far as a seven-fold increase over ten years. Also, a correlation between a country’s development level and insurance coverage has been observed, so that great potential can be seen in implementing microinsurance in developing countries. Microcredits have proven that it is possible to enter emerging markets profitably. For insurance companies seeking growth strategies, diversification with microinsurance products in emerging markets may be adequate.
Especially poor people are exposed to risks due to poor hygiene, nutrition, safety precautions, and medical care. Also natural disasters, climate, and demographic change have even larger impacts. Limited resources can lead to large financial disruption in the case of unexpected events. Life insurance provides coverage in case of death. It is easy to provide and there is a high demand. Yet, there is little information about providers and their products. Currently many researches concentrate on theoretical models and not on what is done in practise. Where are their differences in supply and product design? Where are their strengths and weaknesses? Answering these questions shall help make life microinsurance more feasible, acceptable, and affordable for customers and providers.
This dissertation aims on revealing differences between life microinsurance providers and their products in two selected countries, on which basis improvements shall be suggested for providers and products in both countries regarding the extended marketing mix.
Due to differences in risks and the little research on microinsurance, differences in situation, objectives, strategy, tactics, actions, and controlling are presumed. Analysing these points in two countries is expected to show common practices and where one side can learn from the other.
Table of Contents
1. Introduction
1.1. Problem description
1.2. Research objectives
1.3. Definition of keywords
1.3.1. Microinsurance
1.3.2. Microinsurance products
1.3.3. Microinsurance providers
1.3.4. Market analysis
2. Conception of the market analysis
2.1. Main problem and research aims
2.2. Data sources
2.3. Data assessment method
2.4. Data assessment tool
2.5. Sampling plan
2.5.1. Determination of considered countries
2.5.1.1. Microinsurance sector in India
2.5.1.2. Microinsurance sector in Brazil
2.5.2. Determination of considered product
2.5.3. Determination of considered providers
2.5.4. Determination of considered items
2.6. Form of questioning
3. Realisation of the market analysis
3.1. Data assessment
3.2. Data and information analysis
3.2.1. Data preparation
3.2.2. Data evaluation
3.3. Representation of the results
3.3.1. Results for India
3.3.2. Results for Brazil
4. Suggested improvements
4.1. Conceptual framework
4.2. Situation
4.3. Objectives
4.4. Strategy and tactics based on the extended marketing mix
4.4.1. Product
4.4.2. Price
4.4.3. Place
4.4.4. Promotion
4.4.5. Service
4.5. Actions and Controlling
5. Critique
6. Conclusions
Research Objectives and Topics
This dissertation aims to reveal the differences between life microinsurance providers and their products in India and Brazil, using this comparative analysis to suggest evidence-based improvements for providers in both countries regarding the extended marketing mix.
- Comparative market analysis of life microinsurance in India and Brazil.
- Evaluation of product design, including risks covered, pricing, and maturity benefits.
- Analysis of distribution channels and market strategies.
- Application of the SOSTAC® framework for strategic recommendations.
- Examination of regulatory environments and their impact on market development.
Excerpt from the Book
1.1. Problem description
In developed countries, the penetration of insurance is high and markets often appear saturated. In contrast there is a large potential market of between 1.5 and 3 billion insurance policies in emerging countries, and only 5 percent of these people are so far covered. Previously the growth rate in developing countries was over 10 percent per year and predictions go as far as a seven-fold increase over ten years. Also, a correlation between a country’s development level and insurance coverage has been observed, so that great potential can be seen in implementing microinsurance in developing countries. Microcredits have proven that it is possible to enter emerging markets profitably. For insurance companies seeking growth strategies, diversification with microinsurance products in emerging markets may be adequate.
Especially poor people are exposed to risks due to poor hygiene, nutrition, safety precautions, and medical care. Also natural disasters, climate, and demographic change have even larger impacts. Limited resources can lead to large financial disruption in the case of unexpected events. Life insurance provides coverage in case of death. It is easy to provide and there is a high demand. Yet, there is little information about providers and their products. Currently many researches concentrate on theoretical models and not on what is done in practise. Where are their differences in supply and product design? Where are their strengths and weaknesses? Answering these questions shall help make life microinsurance more feasible, acceptable, and affordable for customers and providers.
Summary of Chapters
1. Introduction: Discusses the potential for microinsurance in emerging markets and outlines the research objectives regarding the comparative analysis of providers in India and Brazil.
2. Conception of the market analysis: Defines the research aims, data sources, and the methodological approach, including the sampling plan and the selection criteria for countries and products.
3. Realisation of the market analysis: Details the data collection and preparation process, followed by the evaluation of products in both India and Brazil.
4. Suggested improvements: Proposes strategic and tactical improvements using the SOSTAC® framework and the extended marketing mix, focusing on product, price, place, promotion, and service.
5. Critique: Evaluates the current commitment of multinational insurers to the microinsurance sector and identifies gaps in market segmentation and innovation.
6. Conclusions: Summarizes the key findings regarding the developmental differences between the Indian and Brazilian markets and highlights the importance of market intelligence for "smart followers."
Keywords
Microinsurance, Life insurance, Emerging markets, India, Brazil, Market analysis, Marketing mix, SOSTAC, Product development, Financial inclusion, Distribution channels, Regulatory environment, Poverty reduction, Risk management, Customer service.
Frequently Asked Questions
What is the primary focus of this research?
The work focuses on a comparative analysis of life microinsurance providers and their product offerings in India and Brazil, aiming to identify operational differences and potential improvements.
What are the central themes of the analysis?
The central themes include the design of insurance products, the regulatory impact on market offerings, and the strategic application of the extended marketing mix to improve accessibility and affordability for low-income segments.
What is the core research objective?
The core objective is to derive recommendations for providers in India and Brazil by comparing their practices and highlighting successful strategies found in the respective markets.
Which methodology is applied to this study?
The study uses an exploratory monitoring approach complemented by inquiries, utilizing desk research and secondary data from regulatory authorities and financial reports to build a comparative research matrix.
What is treated in the main part of the thesis?
The main part covers the conceptualization of the market analysis, the realization of the data collection and evaluation, and the development of specific suggestions for improvement using the SOSTAC® model.
Which keywords best characterize this work?
Key terms include Microinsurance, Life Insurance, Emerging Markets, India, Brazil, Market Analysis, and Marketing Mix.
How do the Indian and Brazilian markets differ in product design?
India focuses on products with tax-free benefits and often includes maturity or surrender values, while the Brazilian market emphasizes funeral assistance and capitalization products, reflecting different cultural and regulatory preferences.
What role does the SOSTAC® model play in the suggestions?
The SOSTAC® model (Situation, Objectives, Strategy, Tactics, Action, Control) is used as a structured framework to ensure that all necessary strategic decisions for developing and implementing microinsurance products are considered comprehensively.
- Citation du texte
- Amanda Williams (Auteur), 2012, Comparative analysis of life microinsurance providers and their products in two selected countries with improvements, Munich, GRIN Verlag, https://www.grin.com/document/206686
