Reimagining microinsurance in an emerging market

Overview

Microinsurance is an industry that keeps building momentum. Changes in the global economy have created an emerging middle class that has been underserved by traditional insurance models. For people in developing countries, who in many cases live on just a few dollars a day, traditional insurance is too costly. Constrained finances and limited awareness act as a significant deterrent to purchasing traditional, risk-mitigating insurance products.

LDR led a cross-functional, international team through the product development life cycle of a microinsurance product and worked with an international team to successfully launch it within an emerging market.

The Goal

Design an affordable microinsurance product to serve millions of people in an emerging market and made available to all economic classes.

The Challenge

A high percentage of targeted consumers had a limited understanding of insurance.
Designing a product that met community needs was challenging due to the market's limited discretionary income and high rates of illiteracy.
The targeted market lacked trust and confidence in the insurance system and did not understand its value.

The Results

Strategy & Approach
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LDR worked with a local team to facilitate the research process, conduct interviews and collect information to uncover common challenges the market experienced. Through facilitated working sessions, the local team supported bridging the market's learning gap and developing simple policies that mattered to the target consumers' culture and belief system.

Execution
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To distribute education and communicate the product offering, LDR developed highly visual products, including an easy-to-use smartphone app. Our team created a network of community leaders acting as brokers to educate and promote the product and to gain local trust and confidence.

Key Accomplishments
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Within the first year, 70,000 policies were sold with an increase to 500,000 in 2021.

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