Educating clients about microinsurance: More complicated than you might think

Most players in the microinsurance sector would agree that to increase the outreach of microinsurance products, more education is needed. But, this is where the agreement ends. Discussions around content, delivery, funding and measurement of insurance education raise more questions than answers. What is insurance education, and how should we define it? How is it different from product marketing? What are the most effective delivery channels? Who should pay for education? How do we measure its impact?

FAI reviews these questions in a new case study of CARE-India's Insure Lives and Livelihood (ILAL) education program.

The study presents useful lessons on how to work with communities where a majority of households are first-time insurance buyers; what education content to include promote better risk management within households; how to maintain consistency and quality of delivery through a vast network of distribution partners; and how to train novice agents to communicate effectively.

The study also highlights how CARE-India is addressing two common challenges faced by insurers: how to make programs sustainable, and how to measure the impact on household decision-making and welfare.

The study is an attempt to better understand the challenges around insurance education and presents useful ideas for organizations trying to develop and implement such programs. More evidence is clearly needed and we hope the study sparks new conversations and further research.