NRT 2011 May 23-24, 2011 Manila Session 9: Responsible and Effective Sales, Marketing and Servicing of Microinsurance by Rural Banks By Michael McCord MicroInsurance Centre President

1. Session 7: Responsible and
Effective Sales, Marketing and
Servicing of Microinsurance by
Rural Banks
2011 RBAP-MABS National Roundtable
24 May 2011
Hyatt Hotel, Manila
Michael J. McCord
MicroInsurance Centre

2. Rural banks that do not yet offer microinsurance
Step 1 – Institutional Assessment
• Everyone does not have to do microinsurance
• Understand if you can manage the requirements
▫ Institutional mission
▫ Financial stability
▫ Human resources, marketing, IT, documentation
• Identify a product “champion” and product team
• Must have endorsement of MD / CEO and board
• Make sure you are ready – honestly!

3. Rural banks that do not yet offer microinsurance
Step 2 – Follow a product development process
• The process will help
you to improve
potential for
success and save
money and
reputation
• Do not skip steps
• Pilot test!

4. Rural banks that do not yet offer microinsurance
Step 3 – Search for the right partner
• Research microinsurance service of insurers
▫ Flexibility
▫ Microinsurance focus
▫ Proven record of good service
▫ Commitment to fast claims payment
▫ Commitment to SUAVE products
• Tender process

5. Rural banks that currently offer microinsurance
#1 – Represent your clients
• Act as “broker”
▫ Conflict of interest?
• Make sure your products are S.U.A.V.E.
• Make sure you have a clear understanding of
microinsurance value
• Success will only be achieved when you have a
win-win-win situation
• Use microinsurance as a benefit to clients

6. Rural banks that currently offer microinsurance
#2 – Manage relationship with insurer
• Memorandum of Association
• Regular meetings
• Clear roles
• Efficiency
▫ Operations
▫ Claims

7. Rural banks that currently offer microinsurance
#3 – Monitor performance
• Best way to ensure a quality product
• Appropriate key performance indicators
▫ Claims ratio
▫ Claims duration
▫ Market penetration
▫ Rejection rates
▫ Renewal rates
• Track your own costs of operations
• Track your marketing costs

8. The MicroInsurance Centre
8
“Developing partnerships to insure the world’s poor”
www.MicroInsuranceCentre.org
mjmccord@MicroInsuranceCentre.org