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Grantee
Prime General Daatgal Insurance LLC (PGI), established in 2001, is owned by XacBank, a leading microfinance bank, and Petrovis, a petroleum importer and distributor company in Mongolia. PGI. It is one of the largest insurance companies in the country and has pioneered microinsurance to serve low-income families since 2006, leveraging its commercial insurance expertise and claims system.
Project Summary
- Project name: Providing self-employed people in Ulaanbaatar with health and accident microinsurance products
- Project start date: October 1st, 2009
- Duration: 18 months
- Country: Mongolia
Beneficiaries
PGI will expand its services to the low-income herders and microentrepreneurs who are underserved by mainstream financial institutions throughout the country. The beneficiaries of the project comprise approximately 12,000 urban and rural low-income households, herders and self-employed people largely dispersed throughout the country who suffer from financial difficulty caused by a variety of factors such lack of education or extreme weather conditions. The project will start with clients living in more densely populated areas, and then extend to herders in countryside.
Project Description
The project aims to widen the availability and scope of health and accident microinsurance products for low-income, self-employed people. The pilot phase will be implemented in Ulaanbaatar, the capital of Mongolia, where about half of the population lives. Although banking and other financial services have become more affordable and accessible for low-income people, appropriate insurance services remain scarce.
PGI will initially conduct market research to understand the underserved markets. Based on the research results, and with the help of external technical advisors, PGI will design demand-driven products and build in-house capacity. PGI will train XacBank's customer officers to effectively market and distribute the microinsurance products. Simultaneously, PGI will conduct an education campaign through public seminars in which XB customers will receive basic financial information, explanations of the products, and brochures. Once the products have been launched, a professional institute will conduct an objective project evaluation.
Key Challenges
- Educating the low-income microentrepreneurs and herders on basic financial knowledge and the use of insurance
to manage risks
- Adequately understanding the target market's needs
- Reaching low-income clients in remote locations
Learning Agenda
- Which partnership model is the most efficient in leveraging financial institutions and retailers operational
processes to reach a very scattered population?
- Which communication medium and format (cell phones, radio or television) is the most effective in educating
the target market?
- What is the optimal premium that can result in the greatest uptake by clients and contribute to early
financial viability?
- What services/products can be bundled to meet the needs of the various low-income market segments
(e.g. microenterprises, herders)?
More information on the project
Website of the grantee:
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