Responsible Finance Forum

Beyond sales: New Frontiers in Microinsurance Distribution

Anja Smith, Herman Smit and Doubell Chamberlain
01 March 2011
Source:  Impact Insurance
Lessons for the next wave of microinsurance distribution innovation

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 takes stock of fourteen microinsurance business models in South Africa, Colombia, Brazil and India that use alternative distribution channels. It provides a summary of the cross-cutting issues and trends emerging across the different distribution models.