women's world banking presentation at 11th international microinsurance conference
TRANSCRIPT
2
Women account for the majority of the poor and the unbanked worldwide
60% of the working poor earning less than US$1 a day are women (ILO, 2005)
FINDEX 2014 data shows that 54% of adults in the poorest 40% households within
dev. economies remain unbanked. The gender gap remains at 9% in dev. economies.
Engaging women is key to advancement of families and societies…
Women tend to invest more of their income into the health, education and well-being
of their families (McKinsey)
…and to sustained economic growth
By 2030, the insurance industry is expected to earn up to $1.7 trillion from women
alone - with almost half coming from only 10 emerging economies (She4Shield IFC)
The global economy has missed out on 27% of GDP growth per capita due to gender
gap in the labor market (IMF, Sept 2013)
We are missing 12 trillion extra GDP growth by not achieving gender parity in a best
in region scenario (McKensey, Sept 2015)
If the credit gap for women-owned SMEs is closed by 2020, by 2030 incomes per
capita could be on average 12% higher across the BRICs and next 11 countries (Goldman Sachs, March 2014)
Why focus on women?
3
Women’s World Banking’s Global Footprint
35+ years focused on women’s access to finance
21 million active clients
68% women
40% rural
38 institutions
$8.5 billion in outstanding loan portfolio
$5.5 billion in deposits
13 banks
6 Non Banking Financial Institutions
16 NGOs
3 Cooperatives
LATIN AMERICA &
THE CARRIBEAN
Countries: 7
Institutions: 10
SUB-SAHARAN
AFRICA
Countries: 9
Institutions: 10
ASIA
Countries: 6
Institutions: 12
EUROPE
Countries: 1
Institutions: 1
MIDDLE EAST &
NORTH AFRICA
Countries: 5
Institutions: 5
Women focus on health and long term goals
4
Source: Women’s World Banking research
Asia (Indonesia)
Caribbean/LA (Dominican Rep)
Africa (Malawi)
0 2 4 6 8 10
others
Job loss
Property
Death
Health
Risk management needs prioritized by the poor in 11
countries
1st priority
2nd priority
3rd priority
Source: Microinsurance center
Women focus on health and long term goals
5
• Poor Health/Illness
• Childbirth
• Death of husband
• Property Loss/Business interruption
• Divorce
• Domestic Violence
• Old Age
• Death
• Health
• Life
• Credit-life
• Savings-linked
• Asset-protection
Our research show that low-income women are most concerned about health and
education, demonstrating their role as the caregiver in the family
To be meaningful, a product must address health, family needs and long-term goals
indicators
low-income populations
Gender research also made
us aware that women in
certain contexts face mobility
constraints and cannot easily
access bank branches
When we studied savings, we
learned that health is a major
area of women’s savings
and also coincides with their
role as caregivers
Gender research highlighted
women’s roles in the
household, including being
the savers and caregivers
Understanding Women’s Financial Needs
• This led us to research and develop women’s savings and insurance products
• This led us to research and develop micro-health insurance products for women
We also learned that women’s
asset building goals are for
the benefit of their families
• This led us to research and develop ways to use technology to deliver products to women
We also found that women need
health insurance not only for
their children, but for maternal
health issues
We also learned that women
value confidentiality and
convenience
6
Key customer insights
• Hospitalization due to delivery is the event that matters most to women
• Women prioritize the health of their family over their own health
• The family policy cannot exceed 5JD ($7) per month
Product Design
• Benefit at 15JD ($21.12) per day for up to 30 days, with max of 48 days in
policy period (increased from 10JD)
• No limitations for pregnancy coverage (original product had limitations)
• No exclusions (for pre-existing conditions)
• Premium at 1JD ($1.40) per month
• Mandatory enrollment for borrower only
• Voluntary coverage for spouse & full family added
Processes
• Simple claims form submitted with admission/discharge form to MFW branch
• In-house claims processing by MFW for < 6 nights hospital stay – client
receives payout faster
What is الرعاية (Ri’aya) – Caregiver?
7
Caregiver is a hospital cash product that pays a fixed per diem amount
Representing women’s roles as the caregivers of their families
Current Caregiver implementation landscape
8
Country backgrounds Jordan Egypt Morocco Uganda India
Total population (2013)* 7.2m 82m 33m 37.6m 1,252m
GNI/capita (PPP $ 2013)* 11 10 7 1 5
Life Expectancy @ birth* 72/76 69/74 69/73 57/61 65/68
Median age (2015) 23 25 29 16 27
Average family size (U/R) ** 2008 5.4 (2013) 4.1/5.1 4.3/5.6 4.7 3.9
Nb of hospital bed per 1000 (2012)*** 1.8 0.5 0.9 0.5 0.7
Name of institution MfW Lead Al Amana FTB Ujjivan
Established 1994 2003 1997 1984 2005
Year joining network 2005 2009 2003 2005 2008
# active clients 115,000 143,000 322,000 370,000 2.6m (2015)
% women clients 97% 87% 45% 60% 99.5%
Total employees 560 850 2,238 540 7,786 (2015)
Insurance Partner JIC ELTC Saham
Assistance
UAP n/a
Product Name Ri’aya
Afitna
Hemeya Tayssir Al
Amana
TrustCare TBD
Clients (T=target) 100,000
+ families (T)
156,000 (T) 300,000 p.
700,000 lives 20,000 (T) tbd
Sources at Nov 1st 2015: *http://www.who.int/ *** http://data.worldbank.org/indicator/SH.MED.BEDS.ZS ** http://www.unicef.org/egypt/Ch1.Demography.pdf http://www.hcp.ma/ Uganda Household census Report 2014 The world fact book
9
What does it take to reach low-income women? Process model
Market understanding
Product design
Data / technical pricing
Client access / distribution
Risk bearing capacity
Regulatory Social impact
metrics
Investment for replication /
scaling
It is not enough to simply create a financial product;
clients must also know how to use it.
With which partners to team up?
10
What does it take to reach low-income women? Product development model
Target Group and Market assessment Institutional assessment
Premium
Benefits
Eligibility and Access
Insurance Partner
Product Marketing
Client education
Brand positioning
Policies and Procedures
Capacity building
IT/ MIS
Financials
Product Design Marketing and
Client Education Operating Model
With micro-insurance, low-income women can mitigate financial distress caused by
unexpected events affecting their family’s health. It can protect the first layer of assets they
have created as they move out of poverty.
We believe that Insurance products can be designed in a way that creates meaningful value
to clients and sustainable solutions to insurers.
11
Our insurance vision
Contact
12
Gilles Renouil || Director, Microinsurance
122 East 42nd Street, 42nd Floor, New York, NY 10168
Tel. 212.556.3148
Skype. gillesrenouil
www.womensworldbanking.org
Follow us @womensworldbnkg || facebook.com/womensworldbanking