New Frontiers in Microinsurance Distribution

The International Labour Organization’s (ILO) Microinsurance Innovation Facility (MIF) commissioned Cenfri to compare innovative distribution models from India, South Africa, Colombia and Brazil. The study was based on several case studies conducted and commissioned by Cenfri. The aim was to create a typology for innovative microinsurance distribution channels and extract cross-cutting lessons on successes and failures from both a consumer and business perspective.

Achieving scale through cost-effective distribution is one of the biggest challenges facing insurers in low-premium environments. The emphasis is increasingly falling on innovative distribution models as alternatives to traditional microinsurance distribution approaches, which typically rely on microfinance institutions. During the last decade, insurance providers and their distribution partners have been experimenting internationally with developing and extending products to clients in new ways. This note identifies 4 categories of distribution models namely Cash-based retailer, Credit-based retailer, Utility and Telecommunications companies and Third-party bill payment provider.

The findings of this study were presented at the 6th International Microinsurance Conference in Manila.