Penetration of Health and allied products in Rural India"

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Penetration of Health and allied products in
Rural India"

• S.Naraynan Managing Director IFFCO-TOKIO
  General Insurance Co. Ltd
• India

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It is not because things are difficult that
we do not dare, it is because we do not dare
that the things are difficult.
ITGI EXPERIENCE WITH RURAL PRODUCTS
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Meeting the challenges

• Product relevance and ease of understanding
• Exposed to Accidental Deaths and permanent total
  disability
• Simple personal accident policy as Add on with
  most widely
• purchased product in Rural area
• Communicating and easy to understand Name
• SANKAT HARAN (Launched in 2001)
• Underwriting considerations
• Pre underwritten product with nominal S.I. of 4
  thousand per Bag
• Maximum SI of one lakh to avoid misuse
• Distribution Challenges -
• Covering pan India through extensive network of
  cooperatives
• Fertiliser purchase receipt is used as Proof of
  Insurance.

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Penetration achieved

• No. of farmers covered More than 2 Crores every
  year
• Relevance reconfirmed through claim payments
  some figures
• In 2002
• No. of claims ____686____________
• Claim amount Rs.__3.82 Crores______
• In 2009
• No. of claims _1094__________
• Claim amount Rs._6.68 Crores____

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Impact analysis

• Public functions to distribute claim cheques
  covered by local news papers contributed
  additional dissemination of Insurance knowledge.
• Avoided manipulation by delivery chain
• Farmer started including family members
  .(benefits understood)
• Helped in Building trust and credibility for
  Insurers.
• Perceived benefits of Insurance higher in places
  where Insurance claims were settled
  (Demonstration effect).

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Role of the supply chain

• Coops went one step further
• Awareness level increased manifold specially in
  places where claims triggered. Case study
  Punjab v/s Orissa
• RSBY / Arogya sree / Yashaswini models should
  become catalysts for further soread
• Need in involve NGOs, SHGs

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Necessary Steps to be taken

• Need to address primary health care to reduce
  claim occurrences. (Social responsibilities to be
  shared with NGOs SHGs Community fogging
  ,public toilets etc.)
• Need to balance the viability of the scheme with
  ability to pay. (Regulatory support of premium
  installments.)
• Explore community based health covers with
  excess. (Involvement through sharing.)
• Viability of scheme to be looked at a longer time
  span (Specific community coordinated supported
  schemes)

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Technology support in overcoming Challenges - few
initiatives
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Weather Data for Insurance

• Automated weather sensor device
• It can collect real time data of rainfall,
  temperature, humidity, wind speed with the help
  of integrated sensor.
• These data can be exchanged and collated through
  internet.
• The real time data can be sent to the
  beneficiaries by automated SMS.

Cabled Vantage Pro2
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Weather Data Collation

• WeatherLink and data logger are the backend
  software which allow to connect the automatic
  weather station
• It records weather measurements for a permanent
  record further analysis.
• These data helps in designing Index Based Weather
  insurance product as well as for claim settlement.

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NDVI- Normalized Difference Vegetation Index

• A hybrid weather-cum-satellite imagery-based
  weather index.
• Weather variation is not the only reason for
  yield variation
• Factors like quality of soil, level of moisture,
  management practices may trigger in yield
  variation.
• NDVI records the satellite images of crop foliage
  to
• assess the yield.
• In this method the claim settlement is done on
  the
• basis of satellite image of foliage, type of
  soil and
• moisture data from satellite images along
  with Temperature
• rainfall data from weather station.

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NDVI Easing Claim Assessment
Predicting end-of-season crop conditions using
the Water Requirements Satisfaction Index
COF11 Forecast Crop Conditions at End of Season
Actual Crop Conditions at End of Season
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RFID in Livestock Insurance

• Radio Frequency Identification (RFID)
• A microchip implanted beneath the animals skin.
• A reliable tamper proof identification device.
• It contains a Unique Identification Number (UIN).
• The Identification number can be read by a
  portable reader.
• The data from reader is synchronized with
  insurers
• data base to ascertain the genuineness of
  claim.

RFID Chip
RFID Reader
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CONCLUSION

• Lot of space is available in Rural Insurance
  Market
• The supply chain after sale service crucial
  role in spreading awareness
• Loss prevention in Health ?
• Use of modern technology to overcome special
  challenges and to support Inclusive growth

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The future lies with those companies who see
the poor as their customers - C K Prahlad
Taking Insurance Penetration to The next
revolution