The critical success factors in micro-insurance

Diamond Management and Technology Consultants' Marik Brockman says there are five key factors insurers need to remember when offering micro-insurance: product design, customer awareness, distribution, premium collection and claims servicing.

Marik says in this value chain, each factor has its own objective.

Marik Brockman: If we talk about the high-level value chain where there's different objectives from each stage. Clearly for product design, it's all about simplicity. For awareness, it's about trust building. Distribution, clearly it's about scalability -- leveraging what's there for now because people have already gotten in there and done the work, so how do you piggy-back on top of that? And then how does that become more and more tailored as the market evolves? For things like policy management and processing, it's really just about low cost -- how do we just make sure the right person paid against the right account and we just track the data. In terms of claims, we've talked about mirroring the fact that the policy needs to be simple, the whole claims process needs to be simple and straight-forward and easily verifiable and avoiding a lot of, whereas in this country, there's a lot of fraud detection and concern about nuances, it's just "yes" or "no."

Technology also has a large role in .......

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