Paper
Performance Indicators for Microinsurance Practitioners
Proceedings from "Microinsurance Workshop: Performance Indicators for Microinsurance Practitioners"
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58 pages
This report was developed from the 'Performance Indicators for Microinsurance Practitioners' workshop' held in Luxembourg on October 16-17, 2006, which examined the steps needed to improve the credibility of microinsurance.The workshop aimed to:
- Strengthen awareness of micro insurers for performance analysis and risk management;
- Provide practitioners with a first set of microinsurance performance indicators and test them using data from the workshop participants;
- Share information necessary to monitor performance and to increase transparency;
- Promote exchange of experiences between participating micro insurers and experts.
The workshop discussed:
- The seven dimensions of microinsurance analysis including organizational structure, marketing and distribution, viability, risk, investment and operations management, and client value and service;
- Measuring performance in microinsurance, including:
- Key principles such as collection of data, production of financial statements, calculation of premiums and claims, efficient claims monitoring, clear investment policy, right technical expertise and transparency;
- Key indicators such as ratios of net income, incurred expenses, incurred claims, renewal rate, etc.
The workshop concluded that:
- Microinsurance performance measurement (MPM) with a set of principles and indicators is important for managers to take well-informed decisions;
- MPM is important for the industry to achieve credibility and to attract future investors;
- Microinsurance is young and it is therefore crucial to learn and exchange information about existing models and practices.
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