David Piesse – Head of Microinsurance Unirisx Apr 2011

Unirisx – Rural Finance Solutions

Presentation to MiRT Roundtable – What’s New

Page 2

Presentation Agenda

• India Project Has Commenced

• Weather Index Enablement

• Unblocking the Security Concerns – Op Risk

• Challenges

• Capacity is hard for insurers doing non life microinsurance because of loss ratios, moral hazards and distribution with innovative product design.

• Reinsurers need contract certainty, robust IT systems and strong claims control in order to provide the needed capacity. This slows down adoption in microinsurance sector.

• Strong primary insurance base is required in order to satisfy the umbrella need of reinsurance.

Capacity Hard - Non Life Microinsurance

Benefits of Pay As You Go – Must Haves

Internet-based business service – accessible 24x7

No investment in IT hardware, software or infrastructure

Multi-language; multi-currency; multi-compliance regime

Supports B2B and B2C

Create unique distribution network e.g., Mass Market/Affinity; Bancassurance; Portal, Small Ticket

Real-time risk management

Straight Through Processing (STP)

Documentation immediately available at POS

On-line underwriting / automatic rating

“Pay as you Grow” pricing modelConfidentialPage 4

QUOTA SHARETREATY PORTFOLIO

INSURER INSURERR INSURER INSURER

CLAIMS                                  CLAIMS COLLECTION CONTROL

REAL TIME CLAIMS BORDEREAU

MONTHLY ACCOUNTS

MI REINSURANCE MODEL

EUROPE

INDIA

Sample Data Only

1 2 3 4

Loss ratio 5.257% 4.724% 15.010% 26.388%

Loss ratio after fees 6.531% 5.869% 18.645% 32.780%

0.000%

5.000%

10.000%

15.000%

20.000%

25.000%

30.000%

35.000%

Loss Ratio (2009)

Total Numbers of Claims by Category –Sample Data Only

SMALL BOWEL RESECTION0%

CARDIOLOGY AND CARDIO THORACIC 

SURGERY9%

E.N.T10%

GASTRO ENTEROLOGY3%

GYANECOLOGY8%

Gynecology0%

HAEMATOLOGY0%

HYSTERECTOMY0%

NEPHROLOGY / UROLOGY12%

NEUROLOGY6%

ONCOLOGY17%

OPTHALMOLOGY6%

ORTHOPAEDIC SURGERY21%

OTHERS4%

PLASTIC AND FACIO 

MAXILLIARY1%

THORACIC0%

VASCULAR SURGERY1%

#N/A0%

Blank1%

Rural Distribution Network

Mobi

le Me

dica

l Van

s

Policy and Claims B2C

B2CBilling and Payments

Embedded Technology Platform

Tea P

lanta

tions

Multi

ple C

hann

els

Data

Cen

ter M

anag

emen

t

Chan

nels

Traditional Client• E-Kiosks

Internet Outlets Laptops

Secure HostedLow Cost Service

Technology Enabler

Mobile Phone• Pre Prepaid• Smart Card• Top Up Service

Global Microinsurance Model

Hosting by Country/Region

Distribution

Best of Breed 

Banks

and

Insurers

JSL Kendra

Mobile Medical Units

Kiosks

JNN members

Mobility

Page 10

Presentation Agenda

• India Project Has Commenced

• Weather Index Enablement

• Unblocking the Security Concerns – Op Risk

• Progress On Embedded Tangibles

• Challenges

As well as product distribution, business users can package up differing coverages, products, LOB’s to offer the end user a “menu” of items to choose from, or to aid in the Cross-sell product.

So for instance the ability to take out a Loan for Seeds, along with insurance for the Crop and Livestock.

Auto Geo-coding allows a link to google earth, or real time maps etc

Claims can be manually triggered for instance on a yield threshold, or automated based on inputs from a variety of events – such as wind speeds from external sources, rainfall index from weather stations

Electronic attachments can be added to the claim file – e.g. to show pictures of the catastrophe, or to record yield reports against the claim for validation.

A variety of data can be captured against a claim depending on line of business and statistical analysis required - e.g. capturing catastrophe codes to aggregate against a single event.

Once a claim is added to a policy, a full audit trail is kept so at all stages both policy and claim data is available at all times

Contract Certainty

Page 20

Presentation Agenda

• India Project Has Commenced

• Weather Index Enablement

• Unblocking the Security Concerns – Op Risk

• Challenges

Producer Profiling & Recruitment

Shared Document & Content Libraries

AppExchangeActivity & Contact Management

Submissions, Quote to Bind

Agency Plans & Commissions

Channel Performance & Analytics Call Center Chat & Email

Support

Customer Sites & Ideas

Web & Social

Portal & S2S

Protecting the Insurance Cloud

22

Analysts - Perceived Challenges for Insurers

TELCO, China Post Office Case Study

Simultaneous rise of mobility and INTERNET gives rise to innovation in emergingMarkets where 3 billion people in rural areas remain without access to financialServices. In the insurance industry microinsurance funded by reinsurance capitalInto communities is becoming the model to assist alleviation of poverty, protect against natural disasters promoting new middle class. Technology pays a key rolehere in keeping the cost of transaction low and mobile phones in conjunctionwith the cloud is dominant. The challenge is to open secure gateways for emailand data so the insurance industry will participate fully and take on the risk. .

GuardTime

Media Publications for Verification

A provable signature service where the signatures can be mathematically verified using integrity codes published in Financial Times and other insurance media off note.

Page 27

Presentation Agenda

• India Project Has Commenced

• Weather Index Enablement

• Unblocking the Security Concerns – Op Risk

• Challenges

Challenges

• Data Collection has been slow on the working project

• Regulator has tried to stop outsourcing to protect policyholder.

• Only the MIS part of the MI solution has been adopted and not yet real time completely.

• Policy administration part needs to be adopted for complete contract certainty.

• Embedded intangibles still applies so RBC/DFA modelling should include MI as a new risk source for balance sheet. .