Beyond the Actuary’s Guess: Lessons from 15 Studies on Client Value of Microinsurance

Evaluating the client value of a diverse range of microinsurance products

This paper summarizes the lessons learned from 15 Client Math studies conducted by the Microinsurance Centre’s Microinsurance Learning and Knowledge (MILK) in 10 countries for a range of life, property, and health microinsurance products. The Client Math methodology uses in-depth interviews with small samples of insured and uninsured people after they have suffered a financial shock to understand its full cost and how it was financed. It aims to understand the role that insurance plays for those who are covered, as well for a similar group of uninsured people. Lessons learned include:

  • Changing the timing of payments can change how much and what type of value products have, even without changing coverage;
  • Funeral and life microinsurance products have the potential to help clients avoid some of the most burdensome financing strategies;
  • In case of loss due to natural disasters, faster claims payment allow insured households to minimize their lost income by enabling them to make productive investments sooner;
  • Cashless microinsurance coverage has great value in reducing out-of-pocket spending at the time of a health shock;
  • Microinsurance can be a valuable tool for financing the costs of illness and healthcare, though it is rarely sufficient to cover all of these costs.

About this Publication

By Zimmerman, E., Magnoni, B. , McCord, M.J.