2. Penetrating The Micro Insurance Market
AIO Life
Presents
Penetrating The Micro Insurance Market
Venue:
CRRAE UMOA,
Abidjan- Cote d’Ivoire
Date:
November 13, 2013

3. PENETRATING THE MICRO INSURANCE MARKETBy
Olugbenga Falekulo
Executive Director (Life)
Continental Reinsurance Plc.

4. Course Outline Introduction to Micro insurance
The 1st Thing 1st in Achieving a Positive Penetration in Micro insurance
Market Segmentation Pyramid
Penetration Level Across Africa
Possible Engine Growth Drivers for Micro Insurance
Essential Features of MI Products Using the Acronym – UASAVE (You are Save)
Some Global Facts About Micro Insurance
Questions and Answers
Conclusion

5. Introduction to Micro Insurance
Micro Insurance may simply be described as the various insurance policies primarily designed to protect people living below the poverty line against the risks of disability and death as well as their important assets which are being used for income generation for them and their family.
Some elements of savings may equally be incorporated in addition to the risks disability and death as maturity benefits for micro life policies

6. The 1st Thing 1st in Achieving Positive Penetration in Micro Insurance?
The 1st thing 1st in micro insurance is the Proper Market Segmentation by:
Classifying and re-classifying the markets to be targeted using certain defined criteria in order to achieve a positive result.
Some of the criteria that may be used are as follows:
– Level of Income
– Economic Sectors
– Proximity in terms of accessibility to these people etc

7. Market Segmentation Pyramid
An example is illustrated in the pyramid below:
High Income Earners
Medium Income earners
Low Income Earners

8. Market Segmentation Pyramid
FARMERS
ARTISANTS
MARKET WOMEN

9. Market Segmentation Pyramid
Pure Life
Property
Health and medical
Credit Life
Agriculture

10. Penetration Level Across Africa
0.06
1.86
0.0002
0.25
0.16
0.002
0.42
5.98
0.5
0.32
0.02
1.31
0.68
2.6
0.38
2.27
1.68
4.57
3.07
0.78
3.19
0.12
Seychelles 0
1.1
7.31
0.94
2.64
55.85
10.98
1.18
0.23
0.08
Mauritius 6.1
12.03
54.47 7
0.01
0.76

11. Why Low Penetration?
In-effective distribution strategies – Distribution strategies have not been effective
Consumers’ unawareness level – The awareness level on the part of the consumers is very low
Weak partnership – Robust partnership should be sought with banks and mobile companies
Weak regulations – Economic realities of the day
Dominance of conventional insurance – Over concentration on the conventional insurance

12. Possible Engine Growth Drivers for Micro Insurance
Effective awareness programmes
Simplicity of MI products
MI products expansion to cover other needs
Creating trust in the minds of MI policyholders
Effective and efficient alternative distribution channels
Highly robust technology
Commercial sector
Good competition
Highly robust regulations

13. Essential Features of MI Products Using the Acronym – UASAVE (You are Save)
Understandable
Affordable
Simple
Accessible
Valuable
Efficacy

14. Some Global Facts About Micro Insurance
It is a useful tool in economic development
A proven record of viability in some of the countries well practiced
MI products are available to meet the needs of all of the low-income people across all the sectors of the economy
Growth rate of 10% – 20% p.a. Versus Global conventional insurance growth rate of 5% p.a

15. Questions and Answers?

16. Conclusion
Thank you