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Health

In India, the access to mainstream private health insurance was just 4.7 % as of 2007. And the reach of micro insurance was even lower. The main problems faced in the Indian context have always been the absence of proper data for pricing and risk determining.

Livestock

Livestock rearing is central to the livelihoods of millions of small and marginal farmers, and landless labour across the country. It is estimated that almost 18 million people derive their livelihood from livestock rearing. The share of population dependant on livestock rearing is particularly more in arid regions of the country.

Agriculture

Approximately 60% of the rural Indian population is engaged in farming and related activities. The majority is small and marginal farmers involved in subsistence farming with thin assets. Risk in the agriculture sector is concentrated both in the production and distribution stage.

Catastrophe

While no country/individual/community is entirely safe from natural catastrophic natural events, lack of capacity to limit the impact of hazards or absorb losses remains a major burden for the developing countries/poor/poorer sections. Losses when seen as a percentage of GDP/total assets it is the developing countries/poor/poor communities that lose most.

About CIRM

CIRM, as one of the specialised design and research centres at IFMR Research, is committed to stimulating greater market outreach of risk management solutions among vulnerable households. Through greater investment in research and design, we ensure improved processes.

An understanding of present businesses is critical to incubating innovations. Therefore, we focus on building and disseminating sectoral knowledge and expertise through our Market Making, Capacity Building and Policy Advocacy efforts.

Journeying from insight to innovation, in 2009 CIRM has leveraged enablers such as technology and decision support systems, to expand access to resilience building solutions. The Centre has focussed on Health, Livelihood, Catastrophe and Longevity as critical themes and has built both, market and academic partnerships.

The guiding principles of the Centre are:

All poverty programmes are incomplete if conceptualised without building safety nets.
Access to a complete suite of financial services allows people greater opportunity out of poverty.
Though informal solutions are effective in some environments, there exists a need for formal risk management solutions.
While ideal market-based formal risk management solutions need to be developed, the state should create an enabling environment to facilitate these market-led solutions.
Enabling the creation of a facilitative infrastructure to catalyse scaling of microinsurance access.

CIRM’s Approach

In order to develop an efficient outreach and ensure delivery of formal risk management solutions, the Centre has chosen to be a niche player and focus on microinsurance and risk management solutions for vulnerable communities. In doing this, in each of its focus sectors, it pursues an integrated approach.

Evaluating Impact

To undertake rigorous research to demonstrate social impact of microinsurance experiments.

Knowledge Synthesis

An information hub and dynamic knowledge repository for microinsurance. To develop robust data warehouses that will provide risk-specific, contextual information that can be readily analysed for product development.

Capacity Building

To offer training support to create risk managers among MFIs, NGOs and CSOs to help understand, manage agency and community risks efficiently. To respond to the needs of insurers and have a cadre of staff who have an understanding of solutions for this segment.

Policy Advocacy

To use research evidence for policy level advocacy. Engage in dialogue with the state and central governments to influence insurance policy. Showcase best practices and innovations in the sector at various national and international platforms.

CIRM in the NEWS: HealthNet,using Apollo physicians will address healthcare and reach out to over a million families anytime anywhere.The Consult 4 Health and Call 4 Health products were developed by CIRM exclusively for Equitas clients.( Read more...)

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Microinsurance Map

Spatial Mapping of Best Practices and Scale of Microinsurance Products in India

A first time sector level innovation in the space of micro insurance in India, it is a compilation of best practices, capture process and product level innovation aimed at low income households. The Microinsurance online mapping initiative is an innovative and quick means to capture the penetration and growth of microinsurance in India over the recent years. This databank will generate current trends in the industry and facilitate in policy advocacy. The Databank is accessible through a website (www.microinsurancemap.com); and will deliver three outputs:

Risk Data - to develop actuarially priced products for rural and low-income markets
Market information - insurer and intermediary level data on products and delivery processes for rural and low-income markets
Premium Calculators - to generate indicative pricing for microinsurance products

The rural and urban vulnerable groups face variety of risks in their day-to-day lives which have a direct bearing on their income, savings and asset accumulation. They are more susceptible than the rest of the population in coping with varied risks such as agricultural looses due to poor weather, natural disasters, illness, death and occupational uncertainties. The high frequency of such risks in rural economies is further exacerbated by the lack of formal market mechanisms due to three ubiquitous challenges namely; information asymmetry, moral hazard and weak enforcement mechanisms.

With the booming middle class, the projections show that it would be over a decade before the market focuses on the "Bottom of the Pyramid" as a potential market segment.

In view of the rapid growth of micro-credit sector, same is the anticipation for micro insurance. However to enable such a growth, one needs to look at a range of issues from need-based, customised and sustainable product designing; effective delivery channels; capacity building of staff and institutions; front and back end system; actuarial-data generation and consumer awareness. Apart from those listed, there are external relations like the role of the insurance company, service providers and regulator that need to be met. To be able to develop products for poor households we need to remove a range of entry barriers for intermediaries and risk carries. One of the biggest challenges for the market has been the unavailability of organized data on 'what works in insurance'. The wealth of knowledge created by Non-Governmental Organizations, Community Based Organizations and Insurers has rarely been collated, structured and disseminated.

With the entry of the Private Sector in the Indian market and its regulatory requirement to reach out to low income households, the mapping exercise would be an important tool to understand the micro insurance sector nationally, integrate learning from good and bad practices experiences on both products and processes of insurance for the sub-prime market.

The Centre for Insurance and Risk Management (CIRM) attempts to take forward the database effort of ILO by developing an Inventory which accumulated the learning and practices from various micro insurance initiatives currently operational for low income households in the country. The Inventory is a compilation of good practices on both - products and - processes of Micro Insurance for the low income market.

Given that there are a lacuna of information on the status of the micro insurance sector and the current growth of the sector, the study will attempt to address this problem by developing a map which would be a rich resource on the existing Micro Insurance programmes in the country. The map would employ qualitative and quantitative research techniques to analyse the data collected from primary data sources and from meeting with functionaries of the micro-credit institutions and other stakeholders.

Following approach will be undertaken for the successful completion of the map:

Collate the given data by ILO on the various micro insurance initiatives that have been implemented in India. The data would be classified further into qualitative and quantitative data.
Collect secondary data from insurers' websites, IRDA (insurance regulator) and other web sources.
Wherever data gaps are identified, directly contact and meet insurance companies to collect data.
On-site field visits to the Micro Finance Institutions, Community based Organizations, Non-Governmental Financial Institutions, Co-operatives to collect primary data. It will also help identify successful micro insurance initiatives, best practices and capture product innovation in different regions of the country. It will also help comprehend challenges specific to difficult geographies where there is lack of financial and physical infrastructure like Kalahandi district in Orissa.
Tabulation of data.
Develop online website with all qualitative & quantitative information which depicts the current market trends, growth pattern, best industry practices and product innovations.

Status: The project is being carried out in phases and currently phase I has been completed which involved the basic groundwork and understanding of the industry. Phase II iterations have started which will have advanced functionalities than the current version of the website.

Microinsurance Map

Health

Livestock

Agriculture

Catastrophe

About CIRM

The guiding principles of the Centre are:

CIRM’s Approach

Spatial Mapping of Best Practices and Scale of Microinsurance Products in India

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