Comparative analysis of life microinsurance providers and their products in two selected countries with improvements

Doctoral Thesis / Dissertation from the year 2012 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,7, University of Cooperative Education, language: English, abstract: In developed countries, the penetration of insurance is high and markets often appear saturated. In contrast there is a large potential market of between 1.5 and 3 billion insurance policies in emerging countries, and only 5 percent of these people are so far covered. Previously the growth rate in developing countries was over 10 percent per year and predictions go as far as a seven-fold increase over ten years. Also, a correlation between a country's development level and insurance coverage has been observed, so that great potential can be seen in implementing microinsurance in developing countries. Microcredits have proven that it is possible to enter emerging markets profitably. For insurance companies seeking growth strategies, diversification with microinsurance products in emerging markets may be adequate. Especially poor people are exposed to risks due to poor hygiene, nutrition, safety precautions, and medical care. Also natural disasters, climate, and demographic change have even larger impacts. Limited resources can lead to large financial disruption in the case of unexpected events. Life insurance provides coverage in case of death. It is easy to provide and there is a high demand. Yet, there is little information about providers and their products. Currently many researches concentrate on theoretical models and not on what is done in practise. Where are their differences in supply and product design? Where are their strengths and weaknesses? Answering these questions shall help make life microinsurance more feasible, acceptable, and affordable for customers and providers. This dissertation aims on revealing differences between life microinsurance providers and their products in two selected countries, on which basis improvements shall be suggested for providers and products in both countries regarding the extended marketing mix. Due to differences in risks and the little research on microinsurance, differences in situation, objectives, strategy, tactics, actions, and controlling are presumed. Analysing these points in two countries is expected to show common practices and where one side can learn from the other.