How can insurtech better serve vulnerable populations?

While there is likely a formal definition of 'vulnerable' the way I think of it is those people (and small companies) to whom a modest financial shock could meaningfully impact their standard of living or the future of their business, and for whom purchasing insurance to protect against this shock is currently impossible or a very difficult trade-off financially. Simply put - people who are not currently as well protected as they need to be by insurance

We set up MIC Global to focus on this vast group of people from all around the world. People and businesses who find it hard to access and afford traditional insurance products. These are the ones who are trapped in the ‘protection gap’, we aim to give better access and build more relevant insurance products for these people.

Dans l'assurance, une population vulnérable présente un risque accru de sinistre ou d'incapacité. Ce statut peut être lié à divers facteurs : ?ge (jeunes enfants, personnes agées) Handicap Exemples : Personnes agées : plus susceptibles d'accidents domestiques ou de maladies chroniques. Personnes handicapées : besoin d'assurance pour couvrir les frais liés à leur handicap. Personnes à faibles revenus : peuvent avoir des difficultés à payer les cotisations d'assurance. Les assureurs doivent adapter leurs produits et services pour répondre aux besoins de ces populations et leur garantir un accès équitable à l'assurance.

Insurtech can better serve vulnerable populations through tailored products and accessible technology. Tammina's Insurance could offer simplified policies with clear language and affordable premiums. Implementing mobile apps or chatbots can improve accessibility for those with limited digital literacy. Partnering with community organizations can enhance outreach efforts and provide support services. Additionally, leveraging data analytics can identify underserved segments and customize solutions to meet their specific needs, ensuring inclusivity and equitable access to insurance services.

The mobile phone has changed the insurance industry. One day the industry will full catch on. In the meantime….. Insurance that is fully tech enabled and embedded into point of sale process generally can be built efficiently, cheaper and positioned as more relevant to the insured. Taking out the friction of sales costs such as selection and other acquisition costs reduces the final cost to the customer. Tech enables mass distribution at low cost and with high availability. Insurance allows the community to support itself when the need arises. Tech enabled insurance companies have a huge opportunity to deliver amazing products to support these communities.

In my experience, insurance companies suffer legacy systems that do not lend themselves well to the agility and scale required to quickly penetrate and adapt to new and changing needs of previously uninsured communities. They also suffer shackles by prudential / regulatory guidelines that change much slower than product development thereby tripping their speed to market compared to insuretechs whose regulatory enforcement is still in its nascent stages. A successful model of insuretech underwritten by a traditional insurer provides the innovative environment necessary for effective scale.

Populations vulnérables et insurtech : L'insurtech peut apporter des solutions aux populations vulnérables en : Simplifiant l'accès à l'assurance : processus de souscription en ligne plus accessible. Proposant des produits adaptés : garanties et services répondant à leurs besoins spécifiques. Offrant des prix plus abordables : utilisation de la technologie pour réduire les co?ts. Favorisant l'inclusion : développement de solutions pour les populations traditionnellement exclues. L'insurtech a le potentiel de révolutionner l'accès à l'assurance pour les populations vulnérables et de leur offrir une meilleure protection.

It's not that they "need insurtech" but rather they "need insurance" and where traditional ways of offering insurance haven't work then maybe some of the innovative spirit of insurtech businesses can bridge that gap. One good example of the use of tech is to support farmers in certain nations with micro payments link to parametric triggers. While this product is offered by both traditional and new insurance firms, it can only be delivered through the effective use of technology to minimise the claims management costs

Insurtech, like Tammina's Insurance, bridges gaps in traditional insurance, providing tailored solutions for vulnerable populations. Through simplified policies and digital platforms, it offers accessible coverage to those with limited resources. Leveraging innovative technologies, it delivers personalized solutions, promoting financial inclusion and ensuring essential coverage for vulnerable individuals.

Insurtech, despite its potential benefits, faces obstacles in serving vulnerable populations. Challenges include limited internet access, financial constraints, and low financial literacy. Data privacy concerns and the need for customization are additional hurdles. Regulatory issues, digital claims processing, cultural sensitivity, and unintended biases in risk profiling pose difficulties. Moreover, there's a lack of awareness and trust in technology among certain vulnerable communities. To address these challenges, a collaborative effort involving insurtech firms, regulators, and community organizations is essential for ensuring inclusive access to insurance solutions.

nsurtech faces challenges in addressing the unique needs of vulnerable populations. Limited digital literacy and access to technology hinder their adoption of digital insurance solutions. Additionally, affordability remains a concern, as traditional insurance models may not be financially accessible. Moreover, data privacy and security issues pose risks, especially for populations with limited understanding of digital risks. Overcoming these challenges requires tailored solutions that prioritize inclusivity, affordability, and user education.

Accès à l'assurance : Simplifier les processus de souscription et de gestion. Développer des offres adaptées à leurs besoins spécifiques. Proposer des solutions inclusives et accessibles. Protection et inclusion : Améliorer la couverture des risques spécifiques à ces populations. Offrir des services d'assistance et de prévention adaptés. Lutter contre les exclusions et les discriminations. Innovation et affordability : Développer des solutions technologiques pour réduire les co?ts. Proposer des prix plus abordables et des modèles d'assurance flexibles. Favoriser l'inclusion financière et l'accès à la protection sociale. Responsabilité et transparence : Assurer une utilisation éthique et responsable des données.

Favoriser l'inclusion : Partenariat avec des associations et des ONG : sensibilisation et accompagnement des populations vulnérables. Traduction des documents et des interfaces en plusieurs langues : meilleure accessibilité pour les populations migrantes. Formation des agents d'assurance : sensibilisation aux besoins spécifiques des populations vulnérables. 4. Lutter contre les exclusions et les discriminations : Collaboration avec les régulateurs pour garantir un traitement équitable. L'insurtech a le potentiel de révolutionner l'accès à l'assurance pour les populations vulnérables et de leur offrir une meilleure protection.

Insurtech can become more inclusive by employing human-centered designs that involve vulnerable groups in creating tailored solutions. By using surveys and focus groups for insights and adhering to principles like simplicity, insurtech can develop accessible services that meet the specific needs of diverse populations, making technology accessible and beneficial for all.

In my role at Paragon, our commitment to community engagement has involved addressing the challenges vulnerable populations face with insurtech, specifically poor farmers in developing countries. For these communities, understanding policy details, filing claims, and navigating the claims process can be daunting tasks, compounded by illiteracy and digital access. To counter this, we designed a parametric insurance model. It simplifies the process, triggering payouts based on specific events: rainfall shortage, making it easier for farmers to grasp. This solution significantly eases their journey, offering straightforward support without the complexity of standard claims, embodying our commitment to accessible and meaningful insurance.

Insurtech can promote fairness for vulnerable groups by ensuring transparency and accountability in data and algorithms, allowing users to manage their data, and auditing models to prevent bias. Involving customers and stakeholders in governance and adhering to ethical standards will ensure that solutions are equitable and respectful of all users' rights.

L'insurtech peut favoriser l'équité en : Luttant contre les biais dans l'évaluation des risques. Proposant des prix plus justes et transparents. Développant des produits et services adaptés à leurs besoins. Collaborant avec des associations et des ONG pour les accompagner. Mettre en place des pratiques inclusives et responsables. L'insurtech a le potentiel de garantir un accès à l'assurance plus juste et plus accessible aux populations vulnérables.