4th Asian Microinsurance Completed in Vietnam

The 4th Asian Microinsurance Conference was held in Vietnam 22nd/23rd of July and resulted in some solid recommendations for microinsurance moving forward and very strong networking presence of over 100 delegates from 20 countries. The lead sponsor Unirisx Asia Pacific Chairman, David Piesse, who founded the conference with AIR four years ago said “We have come a long way since the first gathering in Manila four years ago. The industry is learning as it moves forward in this sector and we look forward to the 5th conference in Cambodia in 2011″.

The main themes for the conference were education of insurance (financial literacy) and claims, both of equal importance. Without education there is misunderstandings of claims situations and without prompt payment of claims there is no trust – a key element in microinsurance at village level. These recurring themes of the conference were embellished by games, comic strips, viral video clips and even a full length Bollywood movie based on microinsurance. Within the topics of education and claims, innovation was the key word.

Country insurance regulators who have not yet put together microinsurance programs were urged to do so and when doing so asked to think out of the box. It was also essential for reinsurers to get on board for microinsurance capacity cover and in return should expect strong claims control. The need to protect against natural disasters on the increase was paramount the conference speakers outlined.

Technology was identified as the business enabler to make microinsurance cost effective by reducing the cost of transaction. Mobile phone and voice technology along with a pay as you go insurance platform were identified as the key game changers for this sector and reaching customers through the last mile.

The Chairman of the conference, David Piesse of Unirisx, introduced the concept of embedded intangibles for the microinsurance sector where value can be added to microinsurance projects early on and get that value recognised on the balance sheet.

Innovative distribution was discussed and debates were held on broker models versus the community model and distribution beyond the traditional MFI agent model. The conference touched on the principles and advantages of microtakaful for the Muslim affinity groups globally. What was key is that the claims settlement process is done locally and by people who live in the community, otherwise trust is lost.

The conference showed the various state of the nation for the countries in Asia. India remained the poster child for most delegates due to the early regulation in this area. Philippines announced their new microinsurance regulation and the fast progress being made for Filipinos in getting financial inclusion. The host country, Vietnam, gave a glimpse of the future regulation there and delegates learned of the substantial work being done by the Women’s Union of Vietnam.

Delegates look forward as the microinsurance flag is passed to Cambodia for 2011.