Improving Client Value from Microinsurance: Insights from India, Kenya and the Philippines
This paper presents results from an analysis of 15 microinsurance schemes in India, Kenya and the Philippines using the ILO's client value assessment tool called PACE (Product, Access, Cost and Experience). PACE looks at the added value for clients of insurance products by comparing the products to each other and to alternative means of protection from similar risks.
PACE helps practitioners develop a better value proposition for clients. It provides an initial assessment of the product and processes and aims to provide actionable insights for practitioners. It can help instill a client-centered approach to microinsurance and can inform the design of more rigorous studies or policy debates. This paper highlights the following three uses of PACE:
- Identifying opportunities to increase client value;
- Conducting competitor analysis at the country level;
- Balancing client value and strategic business choices.
The paper concludes that a competitive environment and market orientation can lead to improvements in the ongoing value creation process. The three-country analysis points to the correlation between client value and maturity of markets. It recommends that client value should drive business viability and it is imperative to strike a balance between the two.
