Micro Insurance Management Practices-

'Marketing channels' or distribution mechanisms- with specific reference to 'stakeholders' or partners in the business of Micro Insurance- Training needs and capacity building at all levels. Micro Insurance market is yet to mature in India as compared to the hectic activities of MFI in the country. Although all stakeholders/partners in the distribution mechanisms, which by itself is shaping up on a spontaneous demand –driven basis, are yet to have a full grip of the situation the market forces are responding favourably due to many constraints. This write up is intended to have an in depth insight into the most essential aspect of growth and development of this sector which is none other than thro’ creation of right ‘market mix’ of product design and development, placment at the right hands of distribution channels in order to have the ‘out reach’ and of course enhancement of training and capacity building efforts at all levels of stakeholders concerned. . According to ILO’s recent survey the present scenario is : With an outreach of 2-21% of target groups in the least –most popularly operational states of Bihar to Andhra Pradesh in India , one would be surprised to know that only as low as 10 schemes are in the market which contains the worlds’ highest potential of MI .That too only the Southern States of India are more advanced in MI distribution as compared to the larger market potential available in North and Western States. So, thro’ this thought provoking article let us analyze what is lacking in creating the required ‘OUTREACH’ and the various challenges in this task. Creating the outreach to the target groups of MI , the remotely/rurally located poverty stricken people , mostly BPL(below Poverty Line) , is the onerous challenge and this task rests with all stakeholders. The partners or stakeholders of MI distribution , are all located in geographically disadvantageous position namely in metros, major cities, district head quarters whereas their MI clients are located far from a routine approach on a regular basis, which is without argument is the most vital factor for an insurance transaction to materialize successfully. Hence an individualistic approach for MI propagation, which generate a very low and not so commensurate premium income is often perceived as the biggest constraint in its distribution. Naturally mass scale distribution of right products in its niche market is the only feasible answer to the challenge. But what happens in the market is another story . As per ILO’s report partnership is as below: New interventions, along with the other products already offered by the public insurance companies, have generated new partnership opportunities for the schemes. The breakdown is as follows: 24 schemes (42 %) have already developed partnerships with public insurance companies; 14 schemes (29 %) have already developed partnerships with commercial insurance companies; The new pattern of forging new multiple partnerships is also becoming quiet apparent. 8 schemes have already entered partnerships with at least 2 insurance companies (public or commercial); 7 schemes have already entered simultaneous partnerships with both public and commercial insurance companies; No doubt, MI opportunity is a hugely untapped market within long term Protection & Health Insurance space in the Insurance Indsutry. In a country with vast young population- an ideal target audience to market Health & Retirement, this brings an opportunity for us to generate business, from not only existing distribution channels namely Agency, Bancassuarance, DST, Emerging markets & Partnership distribution, but also to tap huge growth potential through new channel development & new product categories. How to create these new channels of distrubution and new demand –driven products designed? By utilization of technology development , especially in the ICT sector, suitably to take the role of distribution channel partner tools is the best answer in terms of cost , viability , scalability and accessibility within affordable cost. The mobiles,PDAs, ‘I’phones, Wifi and 3G technologies may provide the answer with other technological tools like smart cards, biometric devices, RFID and so on can also provide the right mix to create the outreach and fill the gap in the distribution channel between the social protection provider and the ‘protected’. Already many models from the MFIs are available such as the mobile devices being used for piggy banks and Kisan Credit cards to cover a huge base of remotely located beneficiaries participating in these programmes. Another model is the Rural IT Kiosks of various organization, e choupals of ITC, Rajiv Gandhi Rural network in AP and so on. Any such organizations’ mission should be to bring the benefits of information and communication technologies to rural communities by :- Influencing governments and aid agencies to sponsor the provision of ICTs to rural communities. Researching the new knowledge required to make ICTs fully capable of improving rural life.  Providing internet access to villages and helping them making good use of it.   Building educational resources to accelerate the application of ICTs towards solving the problems of rural life. Panel 3 - Current Trends and Challenges: India's Micro insurance Movers & Shakers This panel discusses the latest trends and highlights from the sector, and aims to promote information sharing among the various stakeholders in the sector. Microinsurance can only achieve its potential scale if individual expertise is collectively leveraged through partnerships. In this panel, participants together discuss some of the innovative products developed and the delivery channels utilized, as well as a way forward for the sector. Note: Let us learn more and more in further lessons in 6 different modules. Your E tutor: Dr.G.Gandhit.