Our CEO Pauline Davies was in London for the launch ofThe InsurTECH Book, to which she contributed a chapter on microinsurance. It was announced on the launch day that the book had become an Amazon number one bestseller.
Microinsurance is the protection of low-income people, against specific incidents, in exchange for regular small premium payments. The biggest impact this has is on people from smaller or lesser developed nations, particularly if or when natural disasters hit their areas, to help alleviate the adverse financial effects.
The availability of microinsurance has been increasing internationally. For example, it has been estimated that the Philippine microinsurance sector will expand to cover73.3 million Filipinos by 2020 (this estimate comes from a study published by the International Cooperative and Mutual Insurance Federation and Microinsurance MBA Association of the Philippines, Inc).
Microinsurance has tended not to be a particularly profitable area of insurance activity though, due to limitations on the ability to deliver and manage small value policies in sufficient volumes at a low cost. That has not stopped a great number of insurers from participating though, partly for social responsibility reasons and partly because of the perceived benefits of creating a new middle class who will need full-value policies.
InsuredHQ is ideal for the management of microinsurance and, in the first world, small ticket policies. InsuredHQ allows individualised yet automated risk rating in areas of insurance that would otherwise be too administration-heavy to be economic; and with highly automated processing that increases efficiency, reduces labour and IT costs, and allows real-time reporting.