A Microinsurance Toolbox: Solutions to Challenges

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The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Allianz SE (Allianz) joined forces to launch a development partnership as part of the develoPPP.de programme of the German Federal Ministry for Economic Cooperation and Development (BMZ). Referred to as the Microinsurance1 Toolbox (Toolbox), this document has been created by the Development Partnership with the Private Sector (DPP) of the GIZ and Allianz.
 
GIZ and Allianz started its first DPP cooperation on microinsurance in 2004. The purpose was to join hands to tackle challenges and explore new opportunities for microinsurance market development. This first collaboration was initially planned for three years. Two further DPPs followed and eventually lasted until 2017, owed to the achievments and positive experiences of the first DPP. Throughout this period, the DPP has been working to overcome challenges faced in microinsurance market development. The DPP has been endeavouring to prove microinsurance as an economically viable business model using Allianz as an example, while establishing a broader social impact for low-income groups.
 
The purpose of the Toolbox is to share the tools developed by the DPP to address the challenges in creation and upscaling of a microinsurance business. The DPP believes that these tools can assist insurance companies and other microinsurance players in their efforts to develop their own microinsurance businesses.
 
During its long-term cooperation, the DPP learned that the microinsurance market is too big to be served by only a few insurance companies. There exists a need to engage other insurance companies in microinsurance market development for innovation, competition, and social impact. Hence, one of the goals of the DPP has been to encourage international insurance companies to consider a stronger engagement in microinsurance activities.
 
This toolbox hopes to contribute towards that goal. The tools presented herein have helped Allianz in
(a) expanding its microinsurance operations to eleven countries,
(b) creating transparency of its business practices, and
(c) shifting its microinsurance business from ‘Global Corporate Social
Responsibility’ to a core business line, ‘Global Life and Health’.
 
The Microinsurance Toolbox comprises of six
business tools:
1. Microinsurance definition and assessment tool
2. Activity-based costing (ABC) tool
3. Emerging Consumers (ECo) dashboard
4. A game called ‘How insurance works?’
5. Governance and reporting models
6. Peer review tool

 

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7

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28

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GIZ on bahlf of BMZ; Allianz

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