Presentation made by Arman Oza (CEO, VimoSewa, India) at the 6th ICMIF Development Network Seminar (1-2 November 2012; Nairobi, Kenya)

1. How Are Mutuals Better
Positioned To Provide Client
Value / Education?
Arman Oza
VimoSEWA, India
Improving Access to Insurance
6th ICMIF Development Network Seminar
November 1-2, 2012
Nairobi, Kenya 1

2. What Is Client Value?
Customers don’t Client Value in
buy products – Microinsurance
they buy solutions
• Reduced
Vulnerability
• Welfare
2

3. Standard Value Propositions -
Microinsurqnce
• Coverage • Choice
• Flexibility • Information
• Simplicity • Proximity
• Value Added
Services
Product Access
Cost Experience
• Affordable • Quality
• Structure • Processes
• Benefit • Facilitation
Courtesy: PACE Framework, Microinsurance Innovation Facility 3

4. Demeanors In Insurance
Insurance is
always sold – The sacrifice is
real & immediate
never bought but benefits are
Nobody wants
insurance until distant & contingent
a loss is round the
corner
Laughter is the
best medicine –
when you cannot Insurance is a
afford health Contributions by business of
insurance many – benefits
to few.
claims
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5. Intrinsic Value Perceived Value
Will he
pay my
claim?
Benefits
Features
Cost
Flexible
Communication
-Marketing
-Education
5

6. How Can Mutuals Provide Better
Value?
Commercial Insurers Mutuals
Interest – of Owners Conflicting Common
& Customers
Homogeneity of Low High
Customers
Objective Profit Maximization Value Maximization
Cost Structures Heavy Light
Solidarity Low / Absent High
Accessibility for Low High
Customers 6

7. Enhancing Client Value
Mutuals Commercial Insurers
Concept Promotion Product Promotion
Marketing
Building the right Risk Perception Highlighting the unique features
&
of the product
Education
Market-Making Match-Making
Product Product Customisation Product Standardisation
Design
Simple & Flexible Complex and Rigid
Processes & Transparent and Reasonable Jargonized and tedious
Facilitation Equal focus on Social Focused mainly on Financial
Performance Performance
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8. Ground Realities
TASK CHALLENGE
Building & Maintaining Solidarity Balancing short and long term interests
of members
Ensuring community participation and Capacity Building
oversight
Overcoming buyer – seller relationship Inculcating a sense of belonging
Simplifying products and processes Managing operational risks
Performing the Educator’s role Managing and recovering costs
Scaling-up Maintaining social ethos
Focusing on social performance Aligning social performance with
organizational growth.
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9. SEWA’s Experience
Mobilsiing,
SEWA
Advocacy, Right
Union
Based Activities.
Commercial
activities and Cooperatives Trusts
capacity building
Milk, Agriculture,
Handicrafts, Producers’ Consumer
Trade Coops
Health, Banking, Coops Coops
Insurance
•Mobilising women and managing business are distinct skill sets.
•Scaling-up beyond a point is challenging.
•Creating synergy requires lot of effort. 9

10. Summing-Up
• Discovering the right models to scale-up sustainably to
demonstrate larger impact.
• Re-aligning their models in view of governments entering
the low income space.
• Work towards evolving enabling regulation for mutuals.
• Also focus on core insurance principles and sustainability
while enhancing client value.
• Developing benchmarks for social business.
• Better coordination and integration among mutuals for
knowledge sharing and synergy. 10

11. THANK YOU
Visit us at www.sewainsurance.org
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