The following are the emerging trends observed in achieving scale:
- The majority of schemes (72%) offered at least one voluntary product with only 28% of schemes limiting clients to only compulsory products.
- 66% of microinsurance is distributed through some form of third party aggregator (banks, MFIs, pre-existing groups such as labour unions, retailers, MNOs, post offices, credit providers or utility companies).
- 34% cent of microinsurance is distributed through the state.
- The largest proportion (53%) of microinsurance initiatives to have achieved scale exists in Asia.
- India and China have the vast majority of state subsidised initiatives and contribute to the number of health insurance schemes that have achieved scale.
- The unsubsidised schemes, which account for 50% of all schemes, largely sold life products (including credit life and funeral products).
- Very few agricultural schemes have achieved scale.
The following are the emerging lessons from the study:
- Insurers should align their scale strategy with their target group.
- Partnership is a cornerstone of scale, but incentives should be aligned.
- Mandatory products offer instant scale and can be leveraged to offer other products.
- Government has an important role to play in achieving scale for health and agricultural products.
- Appropriate technology is essential for administration, information and communication at scale.
- Tailoring products and processes to meet client needs increases uptake and retention.
- Agency is expensive, but offers substantial benefits if distribution networks are leveraged.