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Grantee
Hollard Insurance, a family-owned group, is the South Africa´s largest private insurance company. Active for twenty-seven years, it has 1,300 brokers providing both short-term and life insurance services to more than 6 million policyholders in South Africa and abroad.
Project Summary
- Project name: Short-Term (non-life) Voluntary Insurance
- Project start date: September 2008
- Duration: 3 years
- Country: South Africa
Beneficiaries
Expected target groups: low-income households in urban and rural areas not currently using short term insurance such as household insurance
Expected outreach: 1 million clients within 10 years
Project Description
Hollard aims to learn how to deliver voluntary asset and other short term insurance to the poor. The proposed innovations include:
- use of technology such as cell phones and global positioning system (GPS) to facilitate sales practices and reduce fraud;
- creating a new cadre of inexpensive microinsurance claims assessors;
- implementing creative market strategies for market education and brand awareness;
- using innovative intermediaries like sellers of cell phone air time.
The project focuses on short-term insurance such as home and assets insurance, which is still virtually unavailable to low-income households in developing countries. Success with this product may encourage other insurers to launch pilot projects in this sector.
Learning Agenda
- How does household and other short term insurance fit within a range of other risk-management needs and strategies by low-income households? What is the client value proposition?
- What type of household and other short term insurance products are demanded? What is optimal coverage versus price?
- What are cost-effective distribution channels, sales and customer loyalty strategies as well as claims administration in the microinsurance value chain?
- What is role of technology within the value chain?
- How can a private insurer get involved in education that serves both its own and consumers´ interests?
- What are key differences between Small and medium-sized enterprises (SME) asset insurance and household insurance regarding all the aspects above?
Quotes
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“We see the partnership with the ILO Microinsurance Innovation Facility as an exciting opportunity to learn faster in order to drive effective access to the lower income market, in a way that is good for the clients, good for our partners and, of course, good for business’
Jeremy Leach, Principal: Micro-Insurance, Hollard Insurance Group
“Building trust between Insurers and their customers is key to successfully serving the low income markets, and together with the Facility we hope to find an efficient and innovative way to better service this market’
Bipin Bhagwan, Assistant Principal: Micro-Insurance, Hollard Insurance Group
“Hollard has already achieved considerable success in the micro-insurance segment. We will continue our focus on developing unique insights into the needs of the low income market, and will design innovative and relevant product and distribution solutions that take insurance into the customer´s comfort zone. We have demonstrated that these solutions must be affordable, easy to understand, conveniently accessible, and must represent good value for money if they are to be sustainable. Consumer education must underpin our efforts to expand the potential market.’
Nic Kohler, Group CEO: Hollard Insurance Group
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More information on the project
Website of the grantee:
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