Sadly, microinsurance is approached by too many MFIs - and insurers - as a separate line of product, with commission income as its value proposition for the MFIs. Given the effort to sell vs. income, that's a hard sell indeed.
At Microinsurance Master, we work with MFIs and insurers to approach insurance as a part of a holistic solution for MFI-clients. Agriculture insurance is a logical addition to agricultural input loans; funeral cover to savings for example.
By bundling insurance, MFIs can improve the value proposition they offer to their clients from where - overtime - up- and cross-selling can occur.
The value proposition of insurance for MFIs lies in the ability to offer its clients a better solution, improved client satisfaction and retention and competitive advantage.
Not only technology or insurers officers are a way out for overcharged loan officers. Several MFIs have successfully involved their members in selling insurance and helping their fellows with claims, helping their community agents to gain respect and income in their communities.
MFIs and microinsurers both work to graduate people out of poverty. An alliance between both players should be logical and straightforward. Yet, few MFIs have really fully been able to unlock the microinsurance potential for their clients.
Luckily, there are some truly inspiring examples out there that prove this point, like Dhan Foundation in India and Card MRI in the Philippines. So, what are we waiting for?
Sadly, microinsurance is approached by too many MFIs - and insurers - as a separate line of product, with commission income as its value proposition for the MFIs. Given the effort to sell vs. income, that's a hard sell indeed.
At Microinsurance Master, we work with MFIs and insurers to approach insurance as a part of a holistic solution for MFI-clients. Agriculture insurance is a logical addition to agricultural input loans; funeral cover to savings for example.
By bundling insurance, MFIs can improve the value proposition they offer to their clients from where - overtime - up- and cross-selling can occur.
The value proposition of insurance for MFIs lies in the ability to offer its clients a better solution, improved client satisfaction and retention and competitive advantage.
Not only technology or insurers officers are a way out for overcharged loan officers. Several MFIs have successfully involved their members in selling insurance and helping their fellows with claims, helping their community agents to gain respect and income in their communities.
MFIs and microinsurers both work to graduate people out of poverty. An alliance between both players should be logical and straightforward. Yet, few MFIs have really fully been able to unlock the microinsurance potential for their clients.
Luckily, there are some truly inspiring examples out there that prove this point, like Dhan Foundation in India and Card MRI in the Philippines. So, what are we waiting for?
Here is another blog I wrote on the topic: https://www.microinsurancemaster.org/microinsurance-value-proposition/