Sixty years ago, a smartphone or tablet computer would have seemed a gadget out of a science fiction or James Bond movie. Since then, innovation has brought those imaginary items into reality, and innovation is very much the key to business success today.
The Afro-Asian region, consisting of all the countries in Africa, the Middle East and Asia (including India and Turkey), is a vibrant mix, with sophisticated and mature markets, developing markets, and emerging markets which until recently were more focused on microinsurance (and perhaps still are focused on this area).
Interesting and innovative ideas have been coming from many insurance lines at all points along the market’s spectrum. Here is a variety to ponder.
A simplified packaged sale
In India, an insurer has teamed with a fertilizer company to sell personal accident policies to farmers, selling policies that are actually packaged with bags of fertilizer.
Once a farmer buys the bag of fertilizer, he automatically receives a set amount of personal accident cover. The price of the fertilizer bag includes the personal accident cover premium, and there is no policy document: the fertilizer bag itself is the proof of insurance.
This simple purchase process is beneficial for a segment of the market that usually considers insurance purchases hectic and complicated. Administration as well is simple and low-cost, and coverage lasts one year and naturally aligns with the farming cycle, so that the farmer, upon buying his next bag of fertilizer, will be covered for the following year.