thalia
PRESENTED BY
12 SLIDES
198 VUES
120 LIKES

Microinsurance Pricing Workshop: Key Components and Examples

DESCRIPTION

Dive into the fundamentals of pricing microinsurance products with pricing components, examples, and strategies discussed by expert Denis Garand. Learn about insurance principles, calculating premiums, and real-life case studies in the microinsurance sector.

1 / 12

Télécharger la présentation

Microinsurance Pricing Workshop: Key Components and Examples

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Workshop on Microinsurance Insurance and Regulatory Development (IRDA)Institute of Insurance and Risk Management (IIRM)United States Agency for International Development (USAID)Hyderabad14 & 15 October 2005Pricing Microinsurance ProductsExamplesDenis GarandConsultantBearingPoint Inc.Indian Insurance Reform Projectwww.bearingpoint.com

  2. Presentation Outline • Summary of key pricing components • Insurance principals • Order of difficulty in pricing • Life insurance example • Health example 1 • Health example 2 • Health example 3

  3. Premium calculation 1. Expected claims 2. Administrative expenses 3. Profit

  4. Insurance principals • Large number of similar units exposed to the risk • E.g. Probability of death 1 per thousand, 1 person ─ 10,000 people, similar risk • Limited policyholder control over the insured event • E.g. Health insurance ─ hospitalization cannot be planned • Existence of insurable interest • E.g You must suffer a lost; insuring ─ neighbors livestock? • Losses are determinable and measurable • E.g. Hut insurance ─ must be able to determine value of hut • Losses should not be catastrophic • E.g. Kutch Earthquake ─ Requires reinsurance • Chance of loss is calculable • Premiums are economically affordable

  5. Difficulty in pricing Rank from easiest to hardest • Accidental death • Life insurance, tied to loan • Life insurance, community based • Hut insurance • Health and livestock (prevention, links with medical professionals important) • Crop insurance

  6. Life expected claims

  7. Life plan design Plan design Rs 5,000 life insurance Community rate Voluntary participation Scenario 1 10,000 women age 27 Expected claims (5*2.96*10,000)/(10,000) = Rs 14.8 per insured Scenario 2 5,000 women age 27 ; 5,000 men age 32 Expected claims (5*2.96*5,000 +5*4.53*5,000)/(10,000) = Rs 18.7 per insured

  8. Life: History of one MI

  9. Health: Example 1 Child health insurance Benefit Rs 2,000 per household Voluntary Hospitalization Expected claims Year 1 Rs 97 Year 2 Rs 85 Year 3 Rs 70 What happened? Percentage of households with insurance increased

  10. Health: Example 2 Health insurance Surgical benefit Voluntary Expected claims Year 1 Rs 65 Year 2 Rs 95 What happened? Insured issued a photo ID Large variations by region Monitoring found one hospital had high rate of hysterectomies

  11. Health: Example 3 Health insurance Primary care, hospitalization Voluntary Attributes Strong community participation Reduction in hospitalization rates Health promotion strategy Viable

  12. Conclusions • Understand the demographics of the group • Understand how the plan is managed • Know the targeted populations • Manage data and monitor

More Related