Microinsurance in Uganda: A Case Study of an Example of the Partner-Agent Model of Microinsurance Provision - AIG/FINCA Uganda - Group Personal Accident Insurance

Institutions have created programs to provide insurance products through various models for insurance provision. This case study reviews the Partner-Agent model between a private insurer (AIG, Partner) and MFI in Uganda (FINCA, Agent) to provide group accident insurance to the MFI's clients. The paper discusses mechanisms of the model and the satisfaction level of the stakeholders in detail.

To provide a better understanding of the process, the paper discusses the following aspects of the product life cycle from the perspective of both the Insurer and the MFI:

• The market which the parties seek to target and justification thereof;
• Product development and testing;
• Delivery channels and partnerships;
• Costing and pricing;
• Product launches and marketing;
• The impact of the partnership on the human resources, operations and systems of the partner and the agent.

It also summarizes lessons learned from the case study, such as:

• New products require formal development, testing, and implementation structures;
• Appropriate training for staff is critical because insurance is a relatively new concept for the MFI staff;
• To avoid revision, premium prices must be structured to cover costs from the start;
• For better coordination, both the agent and the partner should provide a single point representative to address pressing issues;
• As the financial risk lies with the insurer, the MFI needs to play fair by providing quality service to the clients, at the same time ensuring that genuine claims are only made to the insurer.