Microinsurance delivery channels

Insurance culture can be developed by two important elements, understanding and trust. To be able to be aware of the positive effects of MI people need to be able to understand the product and to identify the need for it .As Michal Matul of MI innovations facility clearly explains some of the barriers,’ In most of the developing countries , low income clients think they do not need insurance they do not trust insurance , they do not understand fully the risk pooling concept and strongly believe that the insurance is just for the rich and they do not have enough resources to pay for it’
A variety of channels are needed to reach the target groups largely depending on the literacy levels of our future customers.

Religious institutions:
Many religious institutions have been in the market specially in sub-Saharan Africa for funeral insurance and South Asia for savings services.A few examples are as follows:
Takaful/Indonesia: An Islamic insurance system:Takaful meaning joint guarantee in Arabic complies with the Arabic law. Interest rates, gambling, uncertainty of profits and losses are avoided as they are deemed unislamic.Growth rate was 5% 2004-2007 according to Swiss Re.Allianz Indonesia ‘Payung Keluarga’(family umbrella) offers a microtakaful life insurance which is distributed through MFI’s to its lenders which provides coverage in case of the death of a bread winner. According to the study done by the insurance provisions in the world’s 100 poor countries these Takaful systems as delivery channels almost don’t exist except in Indonesia and Srilanka.
Tata-CRIG Micro-agents: works with the churches in South India to develop a system of micro agents. These are community rural insurance groups a partnership firm registered under the Andhra Pradesh Societies Act and comprise mainly of women. They are 5 low-income women living