Case Brief: Pioneer Microinsurance
Pioneer is one of the biggest commercial insurers in the Philippines. CARD Pioneer – a non-life microinsurer - is a part of the Pioneer Group of Insurance Companies, and is a joint venture with CARD MRI, the biggest microfinance institution in the country with more than 4 million members. When Pioneer Insurance started offering insurance for low-income households in 2007, it had one distribution partner – CARD MRI. Today, after ten years, CARD Pioneer Microinsurance works with almost 100 institutional partners, has issued more than 18 million policies in 2016, and generated Php 936 million pesos (USD 19 million) of premiums.
Pioneer has experienced 60 to 70% year-on-year growth, which is higher than the market growth rate. This brief discusses the two factors which have contributed to this growth rate – a focus on understanding customers and a focus on claims.