Case Study
ALMAO and YASIRU, Sri Lanka
Lessons learnt in providing microinsurance schemes targeting the rural poor
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This study covers two microinsurance schemes in Sri Lanka - ALMAO and Yasiru. The paper lists the common, as well as the separate features of both companies as follows:
- Common features:
- Operate through local organizations;
- Local partners recruit clients, collect premiums and administer claims;
- They target the local poor.
- ALMAO:
- Operates through a nationwide network of savings and credit cooperatives;
- Has developed rapidly;
- Offers: Coverage for disability, hospitalization, death and maturity; and loan protection, life savings, property and health insurance.
- Yasiru:
- Partners with local non-government organizations (NGOs);
- Covers death, disability and hospitalization;
- Has a low-income profile;
- Needs to: Reduce costs; increase annual premium sales; and increase the number of reliable partners.
The paper lists the following lessons learnt by the two companies:
- Identify needs through consultations with the target group;
- Build a system with democratic control;
- Cooperate with established partners;
- Offer simple, affordable products;
- Build equity and reserves.
The paper concludes that:
- There is a need for risk management in Sri Lanka across all classes;
- Microinsurance is useful for the private sector and will build long-term capital;
- ALMAO needs to build up its client-base and develop new products;
- Yasiru needs to increase its network of partners;
- Both companies need to build on awareness, marketing and sales;
- Using existing institutions for distribution is an efficient way to run the service.
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