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Creating an enabling environment for microinsurance in Zambia
Namakau M. NtiniLearning sessions: Microinsurance Business Models for Africa
Mombasa, Kenya April 6-7, 2016
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Presentation Outline
4. Monitoring Performance
2. Development of MI Legislation – Process & status 3. Critical Issues – Are we nearly there?
1. Market Overview
5. Questions and discussion
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1. Market Overview
3 12 22 189
Suppliers
Microinsurance products are more skewed towards long
term insurance
Conventional financial
performance skewed
General insurance
No composite entities
Advent of consumer centric products
Products &Financial Performance
Tied and inappropriate for microinsurance
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2009 < 100 lives
2013 1 Million lives
2014 3 Million + lives
95% credit life 5% life/funeral
Credit life 64%
Life/ funeral 35%
Ag insurance 1%
Credit life 20.4%
Life/ funeral 79.4%
Ag insurance 0.2%
14,178,729
83,450,734
458,273
Life + Funeral Credit life Weather index
GWP - Microinsurance Products 2014 (ZMW)
55% 41%
191%
Life + Funeral Credit life Weather index
Microinsurance Performance 2014
Average Gross Claims Ratio
Mainly MFIs
MFIs, banks, MNOs, workers unions, microenterprise associations, community agents
MFIs, banks, MNOs, workers unions, microenterprise associations, community agents, agribusinesses, farmer Groups
Distribution
Microinsurance Landscape Surveys 2009-2014
Coverage Financial performance 1. Market Overview
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79.4%
20.4%
0.2%
Life + Funeral,
3,397,623
Credit life, 872,713
Weather index, 9,110
Microinsurance Performance 2014 Policies/Lives covered
Life + Funeral Credit life Weather index
42.6%
14.5%
11.2%
5.2%
2.4%
Have not heard about insurance
Cannot afford it
Does not know how it works
Does not know the benefits of
Does not know how to get it/
Key barriers to access
Finscope 2015
Source: Microinsurance Landscape survey 2014
1. Market Overview
Active insurers, 7,
21%
Inactive insurers, 27, 79%
Microinsurance Engagement
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1. Market Overview
1997 2005 2010 2012
Insurance Act enacted
Insurance Act amended
Circular issued to encourage
microinsurance development
2016
Drafting of microinsurance
regulations commenced
Finalisation of microinsurance
regulations
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2. Development of MI Legislation – Process & status
Reforms within the financial sector
Multi- stakeholder collaboration
Regional co-ordination
Balancebetweenregula4on&innova4on
Consumercapability
FinancialConsumer
Protec4on&DisputeResolu4on
Lackofdata7
3. Critical Issues – Are we nearly there?
Are Performance Indicators relevant in Microinsurance?
q They are used to monitor results by industry players and regulators
q Snap shots of performance
q Highlight actionable areas
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4. Monitoring Performance
KPI’s are a quick and easy way to see trends and spot immediate issues relating to:
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4. Monitoring Performance
Productvalue
Customerawareness
Clientsa4sfac4on
Financialprudence
ServiceQuality