Beyond sales new frontiers in microinsurance distribution: lessons for the next wave of microinsurance distribution innovation

Achieving scale through cost-effective distribution is one of the biggest challenges facing insurers in low-premium environments. In an effort to effectively reach a large client base, the emphasis is increasingly falling on innovative new distribution models as alternatives to traditional microinsurance distribution approaches, which typically rely on distribution through microfinance institutions (MFIs). The note considers the experiences of a group of leading microinsurance innovators and, in particular, the role that new distribution approaches has played. It takes stock of what innovation in microinsurance distribution means and considers the performance of fourteen new microinsurance business models in South Africa, Colombia, Brazil and India in the distribution context. It also provides a summary of the cross-cutting issues and trends emerging across the different distribution models.