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Daily Insurance Industry News
Wednesday 25th of April 2018
October 30, 2010

Allianz head speaks out on microinsurance

by Gill Montia

Story link: Allianz head speaks out on microinsurance

Allianz head speaks out on microinsurance

Allianz’s head of microinsurance has concluded that “conventional thinking won’t work if microinsurance is to succeed during the next decade”.

Answering questions on microinsurance markets in India, Indonesia and Africa, Michael Anthony said the tsunami of December 2004 brought with it the realisation that the poorest people, who have no access to insurance services, are the ones who are most exposed to risks of natural catastrophe.

The group therefore developed several pilot projects in India and Indonesia, offering mostly life insurance and savings-linked insurance products, but is now increasingly looking into health insurance and crop insurance.

With regard to providing insurance for very small premiums, Mr Anthony asserts that “distribution is king”, creating a need to work with local structures and organisations that have access to the rural population.

These can be NGOs, grass root organisations, microfinance institutions, farming cooperatives, and tea or dairy boards, etc.

According to Mr King: “It’s through working with these organisations that we reach the people at the bottom of the economic period, and this is how we can make microinsurance viable from a financial perspective.”

 

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