Making inclusive insurance work: Distribution and technology

The UNEP FI-PSI and ILO webinar series

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Making inclusive insurance work - A webinar series by the International Labour Organization’s Impact Insurance Facility and UN Environment’s

Principles for Sustainable Insurance (PSI) Initiative

As part of the global agenda of insuring for sustainable development, the Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative

(www.unepfi.org/psi) are organizing a six-part webinar series with the theme, “Making inclusive insurance work”.

Today’s session will focus on “Distribution and technology”

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Interfacing with the webinar system

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Making inclusive insurance work: Distribution and technology

Presenter:Munir Duri

Kifiya Financial Technology

Ethiopia

Presenter:MK Balachandran

HDFC Ergo General InsuranceIndia

Facilitator:Pranav Prashad

Impact Insurance Facility

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Presenter:Susan Walls

South African Insurance Association

What is the usual role that a distribution channel plays• Sales / enrolments• Payment collections• Consumer education• Assisting in claims

Audience poll 1

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• Distribution team is the first and in some cases, the only contact with the customer

• It is not merely selling but an entire customer experience

Distribution in inclusive insurance

contactingeducating

promoting

counsellingenrolment

premium collection

assisting in claims settlement

renewals

How are insurers evolving

Monitoring and evaluation

Working with distributors to do more than enrol clients

Forming strong partnerships by delivering value

Working with an ever wider range of distribution channels

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Possible

channels

Financial institutio

nsCommunity based

Retailers

Agent network

sMNOs

Post Offices

Employers

Direct sales

Distribution and technology

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Susan WallsSouth African Insurance Association

About SAIAThe South African Insurance Association (SAIA) is the representative body of the short-term insurance industry. It represents the industry to all relevant stakeholders to ensure a sustainable and dynamic industry. SAIA has 59 members, comprising all categories of short-term insurers, including reinsurers. Its members abide by the SAIA Code of Conduct, which ensures adherence to best-practice industry standards and self-regulation

Vision

To promote and represent the interests of the short-term insurance industry, while leading and enhancing the efforts of the industry to become recognised and trusted as an important contributor to the South African economy and society.

Improving value through technologyR115.2 billion opportunity

• South Africa has been slow to go digital. An Accenture survey shows that the local market prefers, and is ready for, digital engagement. If local players can meet this need, they can increase their gross written premiums (GWP) by USD 10 billion by 2020

• To achieve this, they need to re-imagine their business services and solutions around the customer, embed digital into their systems and processes, and meet five digital imperatives that will help them address key customer challenges

5 Imperatives for success• Be accessible: Customers want to interact via multiple channels; insurers

should build the capability to meet evolving preferences

• Be trusted: Data management and ethics are core to building trust, which is essential to encourage digital engagement.

• Be responsive: Insurers should address key areas in which they are failing to meet customer expectations, such as efficiency of claims services.

• Be relevant: Insurers should aim for a 360-degree view of the customer to understanding their needs and personalise interactions.

• Be smart: Smart solutions such as telematics present significant advantages but will require building strong partnerships

Both a challenge and opportunity for distribution and use of technology• Aid in building trust

Distribution and technology

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Munir DuriKifiya Financial Technology

Ethiopia

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Who we are

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Our micro insurance digital service infrastructure

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Our services: providing access to distribution set up and aggregator for agents

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Our services: creating markets for inclusive insurance

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NDVI based crop insurance pilot

2 insurance companies 4500 policies issued

Sum assured USD 208,000

Claims paid USD 43700

What role can a distribution channel play in the claims process• Reporting and recording claims • Connecting beneficiaries with appropriate service

providers and informing them about relevant claims procedures

• Controlling fraud and keeping claims in check • Claims payments• All of the above

Audience poll 2

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Inclusive Insurance through Technology led Distribution

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MK BalachandranHDFC Ergo General Insurance

India

Technology for Rural outreachTechnology solutions for delivery of products and services :

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Tablet based Point of Sale solution for field force in remote villages

Features

A wing to wing point of sale system which works in online and offline mode

Integrated platform that encompasses proposal and policy underwriting, policy issuance and printing

Capturing land records and customer photo Support laptops and tablet devices with Microsoft

windows as a platform

Instant policy issuance and guaranteed policy delivery to the customer

Achieved better control on risk exposure Point of sale booking giving more visibility and

transparency. Faster clearance of Government Audits as the reports

are available on real time basis. Efficient Quality Check at operations level and storage &

maintenance of essential documents

Key Benefits

Office in a Bag

Distribution through Business Correspondent Model

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Working on FI for Banks providing mobile banking solutions, through Smart card Technology at customer door step using POT machines

Partnering to launch technology ( Combination of POT & Mobile ) enabled model to sell a new product in micro space in India - Hospital Cash with Telemedicine

BC model offers mobile banking solutions at customer’s doorstep

Facilitates standardization of delivery platform, back-end database

management system and data maintenance format

Card acts as the Identity card as well as ATM Card

Enrollment through battery operated POT machines

Data captured on the card is sent to the insurer’s database

Premium amount is credited to insurer’s bank account

Enables on the spot policy issuance and inception of Insurance Cover

Premium payment is made through the card

Common Service Centers

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CSC is a strategic cornerstone of the National e-Governance Plan (NeGP) approved by Government of India in May 2006Objective

Delivering Public, Social and Private Services Making socially backward people a part of

inclusive growth Promoting Rural Entrepreneurship Providing access to quality education/skill up

gradation Enabling community participation and effecting

collective action for social change

CSCs offer web-enabled e-governance services in Rural areas on:G2C Services Online Bill payment - Electricity, Water etc PAN card, Passport Services ,Aadhaar etc Issuing certificates , land records etc.

B2C Services Financial Inclusion - BC Pension, Insurance Mobile / DTH Bill Payments / Recharges e-Learning and e-Commerce

About CSC One Stop Solution for all rural needs

VLELogin

Policy Issuance

e-KYC Auth

Cust Info and Paymen

t

CSC Paymen

t Gatewa

y

ProductSelect + Premiu

m

CSC – An Overview of our Presence

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Completed Integration with CSC Portal for Motor Third Party Liability, Personal Accident, Farmers Package Policy and Standard Fire and Special Perils.

82% of the Portfolio Consists of Two Wheelers Liability Only Policies, basis count.

Over 11000 Licensed Individuals, Pan India, called Rural Authorized Persons, have been authorized to write Insurance, on our behalf, at our Rural Areas, vide a seamless flow of information for Policy Issuance and Servicing System.

Over 100000 Policies stands issued on this platform by HDFC ERGO, a share of 68%.

IRIS and Biometric Instruments catered for e-KYC enabled Modules towards roll out under CSC Platform, again the 1st GI Company to do so.

0% 6%

68%

12%

4%

0%

0%

5%0%1%0%

ABHDFC ERGO General Insur-anceCDEFGHIJ

Mobile App for Crop Insurance Claims

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Real time data capture

• GPS coordinates, farmer details, plot details, crop details

• Video and Photo of harvesting

Yield capture

• Capturing yield on the spot• Farmer signature , Govt official’s consent

Data integration with server

• Yield data and other details send via GPS real time• Real time data monitoring and eliminates fraud

completely

Mobile Technology - Live stock Insurance

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Details captured – Photograph, Health status & other details of the cattle, customer information

Real time data transfer to insurance company’s server via GPRS

Policy issued - Facility for policy download in app

Same app to be used during claims - surveyor/vet to access the policy details and photograph via mobile for verification

Claims details to be uploaded back via app

Health Insurance - Mobile enrolment

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• While the drive for inclusive insurance has shown promise, the question is can scale be achieved and viable market created in the absence of the use of digital technology

• Estimates are that by embracing digital technology the growth potential of the insurance sector can be more than doubled. Hence, insurers must re-imagine services and solutions around the customer and seize the digital opportunity

• Technology aids distribution efforts attain scale, transparency and customer satisfaction

Concluding thoughts

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Making inclusive insurance work: Distribution and technology

Presenter:Munir Duri

Kifiya Financial Technology

Ethiopia

Presenter:MK Balachandran

HDFC Ergo General InsuranceIndia

Facilitator:Pranav Prashad

Impact Insurance Facility

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Presenter:Susan Walls

South African Insurance Association

Q&A

Technology assisted distribution can help with “Responsible insurance”…

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FairTr

ansp

aren

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Used effectively by consumers to protect themselves from risk

Our next webinars

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Making inclusive insurance work - A webinar series by the International Labour Organization’s Impact Insurance Facility and UN Environment’s

Principles for Sustainable Insurance (PSI) Initiative

The topics and schedule of the next webinars are as follows:

3. Health – 28 February 20174. SMEs and value chains - March 2017

5. Agriculture and climate risks - April 20176. Insurance regulation – May 2017