Comparing the last centuries´ most significant natural disasters worldwide with the most costly insurance losses, we find that practically none of them had a large influence on commercial insurers. The reason is rather simple: most large-scale disasters happened in developing countries where the majority of population has no insurance coverage.
Poor households are not only exposed to more risks, they also have fewer options to overcome them. Without access to social security systems and poorly developed private insurance markets it is hoped that microinsurance provides the low-income population with a possibility of reliable formal protection.
Ten years ago hardly any commercial insurance company recognized a profitable market in the so-called bottom of the pyramid; the low-income segments of developing countries. Today, many large insurers, such as Zurich and Munich Re have recognized the potential of emerging markets and spot a multibillion market with the possibility of having a first-mover advantage. However, expansion is still largely driven by governmental organizations and key players of development aid enforcing and supporting community-based organizations.
The aim of this thesis is to show how the microinsurance sector is currently developing, under what circumstances insurers can realize growth opportunities and what actions must be taken to provide a valuable financial service.[...]
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 2 Microinsurance Framework
- 2.1 Definition of Microinsurance
- 2.2 Origins and Current Development of the Microinsurance Market
- 2.3 Microinsurance as part of Microfinance
- 3 Demand
- 3.1 Vulnerability and Risk Management of the Low-Income Population
- 3.2 The Bottom of Pyramid Concept in Microinsurance
- 3.3 Need versus Demand for Microinsurance
- 4 Microinsurance Products
- 4.1 Insurable Risks
- 4.2 Product Design
- 4.2.1 Terms of Cover
- 4.2.2 Premium Amount
- 4.2.3 Frequency and Mode of Premium Payment
- 4.2.4 Coverage
- 4.3 Microinsurance Products
- 5 Supply
- 5.1 Participants in the Microinsurance Market
- 5.2 Risk Carrier
- 5.2.1 Commercial Insurers
- 5.2.2 Non-Commercial Insurers
- 5.3 Enabler
- 5.3.1 Capacity Builders
- 5.3.2 Operational Specialists
- 5.3.3 Funders
- 5.4 Distribution Channel
- 6 Adapting Business Operations For Microinsurance
- 6.1 Marketing and Consumer Education
- 6.2 Customer Service and Benefits
- 6.3 Technology and Communication
- 6.4 Risk Management, Control and Claim Processing
- 7 Conclusion and Future Outlook
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis explores the characteristics and challenges of microinsurance operations in developing countries. It aims to provide a comprehensive understanding of the microinsurance framework, including its definition, origins, and development. The study delves into the demand for microinsurance, examining the vulnerabilities and risk management needs of low-income populations. Furthermore, it analyzes the supply side of the microinsurance market, highlighting the roles of various participants and the challenges they face. The thesis also investigates how businesses can adapt their operations to cater to the specific requirements of microinsurance.
- Definition and Development of Microinsurance
- Demand for Microinsurance in Developing Countries
- Challenges of Microinsurance Supply and Distribution
- Adapting Business Operations for Microinsurance
- Key Factors for Successful Microinsurance Implementation
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the topic of microinsurance and its significance in developing countries. Chapter 2 provides a comprehensive overview of the microinsurance framework, defining its key features and tracing its origins and current development. Chapter 3 delves into the demand for microinsurance, analyzing the vulnerabilities and risk management needs of low-income populations. It explores the concept of the "Bottom of the Pyramid" and examines the mismatch between the need and demand for microinsurance products.
Chapter 4 focuses on microinsurance products, exploring insurable risks, product design elements, and examples of existing products. Chapter 5 examines the supply side of the microinsurance market, highlighting the roles of various participants, including risk carriers, enablers, and distribution channels.
Chapter 6 discusses how businesses can adapt their operations to cater to the specific requirements of microinsurance, focusing on areas such as marketing, customer service, technology, and risk management.
Schlüsselwörter (Keywords)
Microinsurance, Developing Countries, Risk Management, Vulnerability, Low-Income Population, Bottom of the Pyramid, Product Design, Supply Chain, Distribution Channels, Business Adaptation, Marketing, Customer Service, Technology.
- Citation du texte
- Bachelor of Arts Eva Tischer (Auteur), 2012, Characteristics and Challenges of Microinsurance Operations in Developing Countries, Munich, GRIN Verlag, https://www.grin.com/document/208263
