Concept for setting up a microinsurance

Question

Hi everyone,

I was recently confronted with a case that I found pretty unusual. The promt was the following:

A big insurance company wants to increase its reputation and trust from the people they insure and potential customers. Therefore they decided to offer a micro insurance to "poor" people. I was given the task to outline a concept for this idea. Specficially, I should adress all aspects as detailed as possible. Meaning, outlining all the parties involved and also the cost and the finance behind the concepts. Especially the last point is quite difficult to adress. I was wondering if anyone of you has a concept on how to approach this kind of case and especially if you would come up with a certain framework to do this. Help is very much appreciated. Thanks

Answer 1

Hi there

I would suggest a simple framework around Goals, Desirability, Viability and Feasibility

This sounds like a new business / project launch.

The primary goal is brand / reputation uplift, I would make an assumption that business viability is still a goal, albeit a secondary one (e.g. we can trade off profits for brand, but not everything)

Desirability - is about whether users want this service. I would list some ideas of microinsurance that this segment might want. Maybe income insurance, business insurance, health insurance? Select one to go deep on.

Viability - this is then typical strategy consulting stuff. Market size, growth rate, competition, estimated unit price possible, cost to serve. Here is where you can add the "finance" stuff about insurance - which I imagine is revenue = insurance premiums; payout costs = probability of payout x size of payout

Feasibility - what do you need to make this happen? Is it digital only or physical? Does it require a sales team, partnerships, regulatory hurdles?

Hope this helps! Let me know if you want to chat through further!