3 min read • Financial Services
Making microinsurance sustainable and profitable
<p>New report from Arthur D. Little urges financial services companies to consider why now is the time to move into the low-income insurance market </p>
As the world grapples with global economic recession, no one is left more vulnerable to unexpected accident, illness or disaster than the four billion people living on less than $2 per day. According to a new report released today by global management consultancy Arthur D. Little, offering microinsurance to this large and disparate market is one way for downturn-hit financial services companies to develop a new profit stream while regaining customers’ trust and working toward a more responsible and sustainable world.
- Simplify products – lowering associated labour costs while maintaining quality without high overhead
- Offer in-kind benefits (funeral service, groceries) rather than lump cash sums
- Engage in public-private partnerships to improve local infrastructure and quality of life for consumers
- Partner with microfinance companies to offer bundled services
- Ensure applications and claims forms are simplified and accessible to consumers
- Use technology (mobile point-of-sale devices, smart cards) to overcome distribution challenges
www.adl.com/microinsurance
3 min read • Financial Services
Making microinsurance sustainable and profitable
<p>New report from Arthur D. Little urges financial services companies to consider why now is the time to move into the low-income insurance market </p>
As the world grapples with global economic recession, no one is left more vulnerable to unexpected accident, illness or disaster than the four billion people living on less than $2 per day. According to a new report released today by global management consultancy Arthur D. Little, offering microinsurance to this large and disparate market is one way for downturn-hit financial services companies to develop a new profit stream while regaining customers’ trust and working toward a more responsible and sustainable world.
- Simplify products – lowering associated labour costs while maintaining quality without high overhead
- Offer in-kind benefits (funeral service, groceries) rather than lump cash sums
- Engage in public-private partnerships to improve local infrastructure and quality of life for consumers
- Partner with microfinance companies to offer bundled services
- Ensure applications and claims forms are simplified and accessible to consumers
- Use technology (mobile point-of-sale devices, smart cards) to overcome distribution challenges
www.adl.com/microinsurance