SHEforSHIELD: INSURE WOMEN TO BETTER PROTECT ALL AXA Group Present in 59 countries, the 161,000 employees and distributors of AXA are committed to serving 103 million clients. Our areas of expertise are reflected across three major business lines: property-casualty insurance, life & savings, and asset management, through which we provide tailored prevention and protection solutions to our clients in a fast-changing risk landscape. For more information, visit www.axa.com/en/group. ACCENTURE Accenture is a global management consulting, technology services and outsourcing company, with more than 336,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com. IFC IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org. Rights and Permissions © International Finance Corporation and AXA 2015 (following Section 5(b)(i) of the AXA/IFC Cooperation Agreement). All Rights Reserved. The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC and AXA do not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accept no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. IFC 2121 Pennsylvania Ave, NW Washington, DC 20433 The maps in this report were produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on these maps do not imply, on the part of The World Bank Group, any judgement on the legal status of any territory, or any endorsements or acceptance of such boundaries. Table of Contents 1. Abbreviations and Acronyms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii 2. Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. Forewords. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4. Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5. Objectives and Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6. Women on the Rise: From Billions to Trillions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 6.1 Women on the Rise: A Strong Growth Opportunity. . . . . . . . . . . . . . . . . . . . . . . . . 13 6.2 Women: Valuable Clients. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 6.3 Birth of a Saleswoman: Women Are a High Performing Salesforce. . . . . . . . . . . 25 6.4 Protecting and Insuring the Half is Investing in the Whole . . . . . . . . . . . . . . . . . 29 7. To Each Her Own. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 7.1 It’s Not All about Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 7.2 One Size Does Not Fit Every Woman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Segment 1: Salaried Women Without Children . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Segment 2: Working Mothers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Segment 3: Retirees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Segment 4: Low-Income Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 8. Enabling Women Entrepreneurs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 8.1 Taking the Entrepreneurial Leap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 8.2 What Women Entrepreneurs Need. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 8.3 Solutions for Women Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 9. So What Now?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 9.1 Build Intelligence on Women’s Insurance Needs. . . . . . . . . . . . . . . . . . . . . . . . . . . 56 9.2 Not Just Any Product: The Right one. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 9.3 Proximity, Ubiquity, Simplicity: Improving Distribution for Women Clients. . . 59 10. Country Profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 11. Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Annex A: List of Graphs and Figures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Annex B: Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Annex C: Detailed Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Annex D: Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Annex E: Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 i 1. Abbreviations and Acronyms AIG American International Group Inc. MENA Middle East and North Africa AMIS Asociación Mexicana de Instituciones MFI Micro Finance Institution de Seguros MSME Micro, Small, and Medium Enterprises BCG Boston Consulting Group NGO Non-Governmental Organization CAGR Compounded Annual Growth Rate OECD Organisation for Economic Cooperation and GDP Gross Domestic Product Development FMSAR Federation Marocaine Des Societes OIC Office of Insurance Commission (Thailand) D’Assurances et de Reassurance P&C Property and Casualty Insurance HUL Hindustan Unilever Limited (India) SCR Société Centrale de Réassurance ICBC Industrial and Commercial Bank of China SEWA Self Employed Women’s Association (India) Limited SME Small and Medium Enterprises IFC International Finance Corporation UN United Nations IFES International Foundation for Electoral Systems WEF World Economic Forum ILO International Labour Organization WHO World Health Organization IWPR The Institute for Women’s Policy Research ii 2. Acknowledgments This publication, “SheforShield: Insure Women to Better Lastly IFC, AXA, and Accenture thank all the insurance Protect All,” is brought to you by IFC, AXA, and Accenture. companies and partners who were willing to share data It was developed under the overall guidance of Caren and their experience to add to the richness of the report: Grown, Senior Director, World Bank Gender Cross Cutting ACA Insurance, AIA, AIG, AIICO, Aksigorta, AL AMANA Solutions, Mary Porter-Peschka, Director, IFC Cross MICROFINANCE, Allianz, AnCheng Property and Casualty, Cutting Advisory Services, Natalie Louat Senior Manager Asociación Mexicana de Instituciones de Seguros (AMIS), IFC Financial Institutions Group, Henriette Kolb, Head Association Marocaine pour la Promotion de la Femme Gender Secretariat, Gaelle Olivier, CEO AXA Asia P&C, and Rurale, Ark Insurance Brokers, ASkHanuman, Asosiasi Garance Wattez-Richard, Group Head of Media Relations Asuransi Jiwa Indonesia (AAIJ), Autorité de Contrôle des & Reputation, AXA. Assurances et de la Prévoyance Sociale (ACAPS), Avrist, Banco Itau, BBVA Seguros, Bilkent Univerisity, BNPP The core working group of the initiative, led by Marieme Cardif, Bogazici University, CIH BANK, China Pacific Esther Dassanou, comprised Girish Bhaskaran Nair, Besa Insurance Company (CPIC), Fédération Marocaine Rizzvanoli, Levan Shalamberidze, and Prapti Sherchan des Sociétés d’Assurance et de Réassurance (FMSAR), from IFC, and Assiba Bouazza, Helene Caillet, Mariana Fondation Marocaine pour l’Education Financière, HSBC, Donnelly, Anne-Charlotte Dymny, Quentin Gisserot, INSEA, Insurance Rating Bureau Thailand, JASSUR, Claire Milliat, Amélie de Montchalin, Laura Rosado, Koc University, Leadway Insurance, Liberty Seguros, and Marta Santamarta from AXA. Peter Wrede, Senior Middle East Technical University, Miller’s Insurance, Insurance Specialist, World Bank Finance and Markets Office of Insurance Commissioners, People’s Insurance group provided technical expert advice and guidance to Company of China (PICC), Permata Bank (Indonesia), the working group. Sabanci University, SAHAM Assurance Maroc, Santander, Secretaria de Hacienda y Credito Publico, Société Centrale The market research was conducted with the assistance de Réassurance (SCR), the Turkey Undersecretariat of an Accenture team, which included Stefanie Bauer, of Treasury, Tokio Marine, Willis, WIMBIZ, and Zurich Angelinda Chen, Elizabeth Cruickshank, Samantha A Insurance Group. Penabad, Kinkini Roychoudhary, Natasha Sunderji and Mary Woodgate under the supervision of Roger Ford and Jessica Long as well as the global research team and in-country Accenture teams. The team would like to thank the peer reviewers who also contributed their time and expertise: Martin Hommes, Meera Narayanaswamy, Heather Mae Kipnis, Yakhara Ngally Sembene, and Jessica Schnabel from IFC; Anne Barret and Isabella Falautano from AXA; and all IFC and AXA country offices in Brazil, China, Colombia, India, Indonesia, Mexico, Morocco, Nigeria, Thailand, and Turkey. 1 3. Forewords IFC The insurance industry shows promising signs of growth in emerging economies. Yet, the industry has largely overlooked a key consumer segment: women. Women in emerging economies are beginning to enjoy rising incomes and purchasing power. Their risk-mitigation needs, accordingly, are growing. By 2030, for example, the insurance industry is expected to earn up to $1.7 trillion from women alone — half of it in just 10 emerging economies. That’s what we found in a ground-breaking study we conducted with AXA and Accenture, the results of which are presented here. At IFC, we believe that women are an important force for development — as consumers, employees, leaders, and entrepreneurs. We know from our experience working with banks that expanding access to finance for women-owned enterprises goes hand-in-hand with bank profitability. We wanted to explore the possibility of achieving similar results in the insurance sector. That’s why we decided to conduct the first-of-its-kind research on the business case for focusing on the women’s insurance market. This report is very much in line with IFC’s overall commitment to developing gender-smart solutions with our clients — so they can improve their businesses by strengthening women’s roles in the private sector. In our research, we asked how women can be better equipped to mitigate risks so they can live healthier and wealthier lives, protect their families, and grow their business. We also examined the prospects for women to buy more insurance. We found that women — unlike men — tend to buy insurance policies not only for themselves but also for their families. Women tend to be more alert to risks that confront their children and parents. To forgo this key market segment, therefore, is to forgo significant revenue opportunities — and to miss an opportunity to drive economic growth. This report highlights a variety of ways for insurance companies to reach the women’s market: by creating customized products, by leveraging the power of mobile technology, and by creating partnerships to educate women on their insurance options. We are confident that the findings can help plant the seeds for a thriving women-focused insurance market — enabling women to better protect themselves, their families, communities, and societies. Jin-Yong Cai IFC Executive Vice President and CEO 2 AXA Group Women hold up half the sky, or so the Chinese proverb goes. This has been true since the beginning of time. But today they are increasingly doing so with one hand, continuing to care for both their parents and children, and becoming breadwinners with the other, contributing to the development and growth of their economies. Women are the largest growth opportunity in the world, will soon represent more than half the university students worldwide, and by 2028 will control 75 percent of discretionary spending globally.1 What is more, they are at the heart of significant global demographic and economic tectonic shifts, be it with regards to the aging of the population or the emergence of a massive middle class across high growth markets. Yet more often than not, women continue to act behind the scenes. They feel — and are — vastly both undervalued and underserved, despite the remarkable strides in market power and social position they have made, even if at uneven speeds, across both developed and emerging economies. Few industries have taken into account the demands made on women’s time due to conflicting priorities stemming from their work, their homes, their families. With regards to insurance, this report demonstrates that the industry has overlooked the fact that women, who are more risk-aware, are driving a shift in spending patterns, focusing more on things such as education, health, savings, and overall the holistic protection of their households. They are also risking the entrepreneurial leap and creating their own businesses. This grows their protection needs faster than those of men, and insurers have a genuine interest in filling in this growing protection gap. But women lack awareness and understanding of what is available, as well as access to relevant insurance products and proper advice — advice by women and men who understand their specific needs as women, but also as income earners and decision-makers. As they will increasingly fuel tomorrow’s growth, emerging markets are and will continue to be a strategic priority for AXA. One of our key ambitions is to contribute to their economic development through better and more wide-ranging risk-sharing, protection, and prevention. Protecting women is one of the key building blocks of this ambition, as we believe it will contribute to sustaining growth by bringing women into the workforce and raising the overall level of human capital, productivity, and wages. This research comes at a critical time. There have been limited global resources allocated to better understanding women’s attitudes towards insurance, their needs and expectations. This is true for the developed world but even more strikingly for the emerging one, which is why we decided to join forces with IFC and put our complementary heads together in order to improve the collective understanding of how insurers can best support and protect women. How we can empower the business owners, give the home-makers peace of mind, anticipate the needs of all. And by so doing, society as a whole. By looking to fill this gap, we aim to further push the borders of insurability, thereby ultimately contributing to a more sustainable future that welcomes the world’s transformations with open, prepared arms. I hope the critical insights and recommendations offered in this report will help the wider industry but also all our partners and stakeholders at large further contribute to better catering to this half — to better protect the whole. Denis Duverne Deputy CEO, AXA Group 3 Accenture Accenture is proud to have partnered with the International Finance Corporation and AXA on SheforShield: Insure Women to Better Protect All, a comprehensive report on the state of the women’s insurance market in developing markets. This report explores the size and importance of the opportunity that the uptake of insurance among women represents for the insurance industry and the development community. Insurance companies have long played a leading role in society — investing in the wellbeing of communities, helping individuals and families thrive in the face of uncertainty, and catalyzing innovation through businesses by offering products and solutions that fit the marketplace. Insurers once again have the opportunity to do good, and thus to do well — to transform the commercial and employment power of women in emerging markets and help them become a financially viable and vital customer base and workforce. This report presents compelling evidence that women’s consumer needs must be addressed in order to capitalize on the incredible growth potential in emerging markets. As individuals, they represent a multi-faceted customer base, with growing financial means that they are ready to invest in products that meet their life needs. Women can play an important role in explaining and selling insurance products across customer segments, and especially to other women. Across the value chain, from the rural sales agent to the corporate executive, including women in the creation, marketing, and distribution of insurance products will help insurance companies sell solutions to meet the needs of their new customer base. Clearly, the women’s market in these countries — and in other emerging economies — represents an enormous opportunity for insurance companies. The report estimates that women’s individual spending on insurance premiums will grow to three times its current size, to $1.4 to $1.7 trillion, by 2030. Women entrepreneurs are now one-third of the world’s business owners, and they are looking for ways to expand their businesses and contribute more to the wealth and security of their families. Despite this, relatively few insurers are targeting the women’s market and positioning themselves to share in the success of these entrepreneurs. Opening up this large potential market will require investment and partnership across organizations and sectors. It will require an understanding of women’s needs before developing products, and the transformation of single products into multi-layered solutions with wrap-around services and clear whole-family and business protection. By providing the right products and the right information, by expanding the role of women in their salesforce, and by providing the tools, training, and structure to help women sell effectively, insurers can foster economic growth while helping improve the lives of women around the world. Insurers that take this path can also open up new avenues for their own continuing, profitable growth. We encourage all actors across the private, public, and development sectors to consider their role in furthering the advancement of women in the insurance sector — and watch as women cultivate, grow, and innovate both within their communities and globally with the support of the risk assurance community. Thomas D. Meyer Accenture Insurance Industry Lead Europe, Africa and Latin America 4 The women’s market of the 10 emerging economies covered in this report will represent up to half of the global women’s market premium by 2030 5 AT-A-GLANCE GLOBAL $1.7 T Trillion OPPORTUNITY $1.452 TRILLION 2x $770 BILLION GROWTH 2030 annual premium value of the women’s global 2013 2030* market is predicted to grow approximately TWICE the size of the 2013 market. LIFE INSURANCE HEALTH INSURANCE NON-LIFE INSURANCE 2x 3-4x 2x GROWTH GROWTH GROWTH Annual premium value of the Annual premium value of the Annual premium value of the women’s global life insurance women’s global health insurance women’s global non-life insurance market is predicted to grow from market is predicted to grow from market is predicted to grow from $448 billion in 2013 to $825 – $963 $43 billion in 2013 to $162 – $184 $279 billion in 2013 to $465 – $554 billion in 2030.* billion in 2030.* billion in 2030.* Socioeconomic Increase in women’s Trends: progress: tertiary education. What’s causing this Women’s Household growth globally and in willingness bargaining power. to spend on emerging markets? Independence as a result insurance: of an increase in income. 6 EMERGING MARKET OPPORTUNITY $874 B 6-9x GROWTH 2030 annual premium value of the women’s global market is $98 BILLION 2013 2030* $569 BILLION predicted to grow SIX to NINE times the size of the 2013 market. LIFE INSURANCE HEALTH INSURANCE NON-LIFE INSURANCE 5-8x 6-9x 6-10x GROWTH GROWTH GROWTH Annual premium value of the Annual premium value of the Annual premium value of the women’s global life insurance women’s global health insurance women’s global non-life insurance market is predicted to grow from market is predicted to grow from market is predicted to grow from $55 billion in 2013 to $298 – $458 $5 billion in 2013 to $29 – $46 $38 billion in 2013 to $242 – $370 billion in 2030.* billion in 2030.* billion in 2030.* *The 2030 market size estimate is Increase in women’s labor Increase in women’s income bounded by: a) Baseline Growth (lower boundary): force participation. in emerging markets. Growth in the number of women customers and individual premium spend per customer due to improvements in the women’s socioeconomic factors Risk-awareness. Women as conduit to b) Opportunistic Growth (upper boundary): In addition to family members. socioeconomic improvements, Willingness to pay for assume successful efforts in targeting more women to purchase insurance peace of mind. products and in upselling/cross- selling products to each woman 7 4. Executive Summary T he insurance industry plays an important role in the growth and stability of the global economy, providing individual, family, and community level protection against economic, social, and environmental shocks. Women are half of the world’s population. They also represent more than half of all global graduates and increasingly participants in the workforce. When it comes to insurance — both uptake and distribution — and the protection it provides, women are therefore an essential market to target. Furthermore, women play a multi-faceted role in society which enables them to act as a conduit for social change and economic progress making them an increasingly important part of the population to protect. Yet to date, limited research has been done on the women’s market. This report is the first of its kind to provide an understanding of how much growth the women’s market alone represents for the insurance industry, and what women want and need from insurance products and services in particular in emerging markets. It also provides recommendations on how to attract and retain women as vital clients. 10 KEY INSIGHTS ABOUT WOMEN than transactional approach to networks make them a valuable customer and an inexpensive brand AND THEIR PROTECTION NEEDS ambassador for insurers. 1. Women on the rise — from billions to 4. It’s not only about money: It’s more than trillions: From a market of nearly $800 billion just financial compensation for loss. Women in 2013, the women’s market globally is expected to want protection and peace of mind not only for represent between $1.45 and $1.7 trillion by 2030. themselves, but also for their husbands, children, 2. A re-balancing act: The women’s market of and parents. They do not want to be a burden; they the 10 emerging economies covered in this report want short-term simplicity and long-term stability, will represent up to half of the global women’s advice, and support. market premium by 2030. Women are gaining 5. It’s all about life’s big moments: Women’s ground; their increased level of education, income, needs and preferences differ by segment and lifecycle improved socioeconomic status, and their greater events, requiring insurers to tailor products and need for protection make them a big opportunity for services. There are five to six tipping points during insurers. This is strongly reflected in a very simple a woman’s life at which she makes a significant yet telling number: women across the world are amount of her insurance related decisions: marriage, willing to invest 90 percent of their income into their entering the workforce, buying a house/car, having households.2 children, divorce/widowhood, and retirement. She 3. A valuable client: Women’s attitudes toward has little time to think about protection products on a fraud, claims, loyalty, their roles as a trusted source regular basis. of recommendations, and their relational rather 8 6. The birth of a saleswoman: Women in the 9. Digital channels: Not only for the young, insurance industry are a performing salesforce. In but also for the time-poor: Insurers need to particular, their point of differentiation relates to leverage digital distribution channels to increase their ability to develop long-term client relationships, awareness and communicate with women clients, as thereby improving client retention and possibly they have recourse to time-gaining digital services to influencing the iterative uptake of insurance products manage both their family and professional agendas. with existing clients. Given women’s role as conduits and the value they place on peer-to-peer recommendations, their lack 7. Empower women entrepreneurs: One-third of of time and desire to save it, insurers should leverage the world’s entrepreneurs are women who want to targeted social networks and mobility. grow their business and take more calculated risks, but who face a glaring gender gap and access to 10. Stronger together: Partnerships with finance. By helping them manage the risks, insurance governments, non-governmental organizations, increases women’s ability to access credit and helps women’s associations, and other private sector players them to make this leap. can be developed to expand access to insurance for women. In particular, given the extent to which 8. One size doesn’t fit every woman: Women women tend to lack time and look to save it, they are not a homogeneous group but are a diverse often see value in buying things together thanks market with different needs depending on their to “transitive trust” i.e. if one brand/provider trusts income, location, employment, and status. Different another enough to partner with it, then so will the women face different constraints in accessing and woman client. The insurance industry should look to using insurance. identify the right private partner(s) with whom to envisage a bundled offer. …only 31 percent of women entrepreneurs surveyed held protection- or savings-oriented life insurance 9 Recommendations Step 1: Step 2: Step 3: Build intelligence on Develop targeted value Improve distribution women’s insurance needs propositions for women and proximity to women segments clients • Gather gender-disaggregated data across the insurance value • Conduct more in-depth focus • Use a digital approach as an chain to further analyze and build groups for each segment to further opportunity to increase proximity the strategy for the women’s understand needs and cultural with women clients and sell market opportunity; nuances; insurance through mobile and online channels; • Monitor gender-disaggregated • Develop targeted products for data across the insurance value women client segments based • Build on women’s specific chain to track the performance on segment specific needs (e.g. networking and advocacy habits of, and refine the strategy for the conditional payouts or product to increase proximity to women women’s market; bundles); clients and increase their trust in insurance companies; • Analyze existing data and collect • Provide wrap-around services to new information on women’s enhance product value by helping • Provide clear, relevant coverage demographics, socioeconomic women address everyday needs. information and targeted risk trends, as well as needs and management advice to reduce behaviors to 1) segment women’s the time and cost for women to market 2) design targeted products research products; and services and 3) implement dedicated marketing and • Engage and empower more distribution strategies. women in the insurance salesforce and within other departments of insurance companies i.e. actuaries, product designers, marketers, and mid-management, to represent the needs of and create affinities with women clients; • Provide gender sensitive training to the salesforce to better engage women clients; • Engage in partnerships to expand women’s access to and use of insurance and enhance product and service value. 10 5. Objectives and Methodology T his report is a call-to-action for insurers to recognize the potential of women as clients and distributors. Specifically, this report will: 1. Present the business opportunity in the women’s Market Research insurance market globally and within 10 emerging markets. A combination of in-person interviews, surveys, and desk research was conducted. 2. Identify drivers of growth, be they micro or macro, in the women’s insurance market that make them a 1. Primary Research: 174 interviews were conducted valuable market segment. with representatives from the insurance industry, brokers, agents, women clients, regulators, and 3. Highlight women’s needs, preferences, and insurance associations. constraints in accessing and using insurance products. Examine different behaviors, needs/ 2. Secondary Research: Global literature on gender, preferences, and constraints faced by different insurance, and development was reviewed to segments of women clients. understand women’s insurance needs and existing insurance initiatives that targeted women. 4. Examine women’s role and impact as members of the distribution force, including how women’s skills can be leveraged to increase the uptake of insurance Modelling — Estimating the Market within the 10 emerging markets and beyond. Opportunity 5. Identify recommendations for insurers to begin The annual premium spend by women retail clients3 was unlocking the potential within the women’s market, estimated based on the population of women in the labor while working with other industries, governments, force, income earned per woman, and insurance as a and non-governmental organizations (NGOs). percentage of consumer spending. The market size does not include commercial spending.4 As this is the first global report of its kind on the topic of women and insurance, the findings do not represent A range is provided for 2030 market forecasts. The lower all women in each market. Opportunity drivers, boundary of the range represents the “baseline growth” recommendations, and constraints for women vary across i.e. predicted market-specific changes in socioeconomic geographies and socioeconomic brackets, and additional factors such as labor force participation and income. The research is required to tailor services in order to respond upper boundary represents “opportunistic growth,” which to different market needs. assumes successful efforts in targeting more women to purchase insurance and in upselling/cross-selling more products to women. Scope of the Report For more information on the methodology, please refer to The report is global in scope, with a specific focus on Annex C: Detailed Methodology.  10 emerging markets - Brazil, China, Colombia, India, Indonesia, Mexico, Morocco, Nigeria, Thailand, and Turkey. These countries were selected because the socioeconomic advancements made by women in these markets are expected to further increase the need for insurance to protect their growing assets and independence. In addition, insurance growth in these markets is outpacing growth in developed markets. 11 Women play a multifaceted role in society which enables them to act as a conduit for social change and economic progress 12 6. Women on the Rise: From Billions to Trillions G lobally, women’s income is projected to reach $6 trillion by 2017, and, by 2028, women are expected to control close to 75 percent of discretionary spending worldwide.5 Changes in women’s socioeconomic status, while different across regions, are increasingly empowering women to influence and make decisions.6 Women are not just earning more, but are also increasingly deciding how their wealth, that of their households and businesses, is spent. In addition to being a fast growing segment, women 6.1 WOMEN ON THE RISE: A STRONG exhibit behaviors that make them a highly valuable GROWTH OPPORTUNITY customer base for insurers. From women’s lower tolerance toward fraud to their role as advocates for insurance, they represent an opportunity for insurers to A — Global and Accelerated Growth capture significant growth at potentially better margins. Across the Board Finally, providing better protection for women is an The women’s insurance market represents a significant investment in society. Women tend to reinvest up to and exciting growth opportunity for insurers globally, 90 percent of their income back into their children’s and within the 10 focus markets in particular. Currently, education, nutrition, and health needs, which makes the annual premium value of the global women’s retail them a vehicle for growth for their families’ and societies’ insurance market across life, non-life, and health product well-being. Women’s focus on education and health lines is $770 billion,7 17 percent of the $4.6 trillion8 in total also helps grow these industries, which are critical global retail and commercial insurance premium volume. to the development of economies. Thus, by helping By 2030, the annual premium value of the global women’s women protect and increase their income and assets, retail insurance market is predicted to range from $1.452 and empowering women through informed risk taking, trillion to $1.701 trillion,9 representing approximately 19 insurers are indirectly helping to grow society overall. percent to 22 percent of the projected total global retail and commercial insurance market in 2030. The 2030 market size estimate is bounded on the lower end by baseline growth (growth from projected market-specific improvements in women’s socioeconomic conditions) and on the upper end by opportunistic growth (additional “Whoever targets women clients in the market growth assuming successful targeting of women clients in upselling and/or cross-selling).10 first will have a first-mover advantage and earn the fast-growing income of this increasingly Within the 10 emerging markets,11 the growth rate of the important customer base.” women’s retail insurance market is even higher. Currently, — Executive, National Insurer, Beijing, China the annual women’s retail insurance market size in these 10 focus markets across all product lines is $98 billion, or 18 percent of the $527 billion in total retail and commercial insurance premium volume.12 By 2030, the projected 13 annual women’s retail insurance market size is expected to grow six to nine times its current size to $569 billion13 Graph 1: Women’s Retail vs. Total Retail and to $874 billion,14 representing 22 percent to 33 percent of Commercial Insurance Market Size in the 10 the total retail and commercial insurance market value of Focus Markets (US$ B) $2.6 trillion in these 10 markets15 (see Graph 1 right). 2,640 2013 2030 Within the 10 focus countries, the largest women’s insurance markets are projected to be China and Brazil (see Figure 1 facing page). 874 —Optimistic 527 scenario Furthermore, in examining the market size and growth 569 98 —Base case rate, the current market maturity is taken into account. While China and Brazil are expected to have the largest Women’s Retail Total Retail and Commerical Insurance Market Size Insurance Market Size markets in 2030, they are also currently larger than other markets. The fastest growth rate is actually projected to occur in Indonesia and Nigeria (see Graphs 2 and 3 facing page) due to the rapid growth expected in both the insurance industry and in women’s socioeconomic development, particularly in women’s income. 14 Figure 1: Projected Women’s Insurance Market Size in 2030 in the 10 Focus Markets Legend Market Potential High (>$100 B USD) Medium ($30 – 99.9 B USD) Long Term (<$30 B USD) Graph 2: 2013 Women’s Insurance Graph 3: 2030 Women’s Insurance Market Size in the 10 Focus Growth from 2013-2030 Market Size in the 10 Focus (As a Multiple of its 2013 Size) Markets (USD) Markets (USD) China $65 B 6 – 9X $375 – 575 B Brazil $10 B 8 – 12X $79 – 122 B Turkey $3.7 B 8 – 12X $31 – 47 B Mexico $4 B 6 – 10X $26 – 40 B India $10 B 2 – 4X $22 – 35 B Colombia $3 B 5 – 8X $16 – 25 B Indonesia $879 M 10 – 16X $9 – 14 B Nigeria $635 M 9 – 13X $5 – 8 B Thailand $1 B 5 – 8X $5 – 8 B Morocco $20 M 2 – 4X $50 – 77 M 15 B — Projected Growth in Life Insurance $298 billion to $458 billion by 2030. The women’s retail life insurance market is projected to be the largest in China, Globally, the annual women’s retail life insurance market Brazil, and India (see Figure 2, Graphs 4 and 5 below). In is estimated to be $448 billion, approximately 17 percent comparison, growth figures in life insurance overall in of the total global retail and commercial life insurance emerging markets range from a CAGR of 3.9 percent to market value of $2.6 trillion.16 By 2030, the annual 8.9 percent.17 women’s retail life insurance market is expected to grow between $825 billion and $963 billion, growing at a 3.7 Life insurance policies which include savings and percent to 4.6 percent compounded annual growth rate retirement products are especially important for women (CAGR), a slightly faster rate than the global retail and due to their longer life expectancy. In the 10 focus commercial life insurance market which is at 3.3 percent. markets, women outlive men by an average of five more years, with higher age gaps in Brazil, Colombia, Indonesia, Across the 10 focus markets, the current annual women’s Thailand, and Turkey (see Graph 6 right). However, the retail life insurance market value of $55 billion is projected statutory retirement age for women in many countries to grow by a CAGR of 10.4 percent to 13.2 percent to reach is lower than men’s and does not reflect this dramatic Figure 2: Projected Women’s Life Insurance Market Size in 2030 in the 10 Focus Markets Legend Market Potential High (>$20 B USD) Medium ($5–19.9 B USD) Long Term (<$5 B USD) Graph 4: 2013 Women’s Life Graph 5: 2030 Women’s Life Insurance Market Size in the Growth from 2013-2030 Insurance Market Size in the (As a Multiple of its 2013 Size) 10 Focus Markets (USD) 10 Focus Markets (USD) China $36 B 6 – 9X $205 – 315 B Brazil $5 B 8 – 12X $41.8 – 64.5 B India $8.6 B 2 – 3X $17.7 – 27.6 B Mexico $2 B 6 – 9X $11.7–18.1 B Indonesia $700 M 10 – 16X $7 – 11 B Colombia $1.1 B 5 – 8X $5.7 – 8.8 B Turkey $500 M 8 – 12X $4.4 – 6.7 B Thailand $690 M 5 – 8X $3.6 – 5.4 B Nigeria $76 M 8 – 13X $621 – 952 M Morocco $7.5 M 2 – 3X $16.2 – 24.8 M 16 difference in life expectancy (see Graph 7 below). Because Market interviews in Mexico show that more women women may not work for as many years as men and will designate their children, not their spouses, as are more likely to have worked part-time due to care beneficiaries. This type of post-mortem financial security responsibilities, they do not contribute as much to their is what protection-oriented life insurance is designed to pension over their lifetime. This widening gap between provide. retirement and life expectancy means it will be more important than ever to make sure women have adequate The potential of the women’s life insurance market savings and pensions. has been recognized in a few countries. For example, a report by the Society of Actuaries in the United States Findings from the International Labour Organization establishes a strong business case for life insurers to (ILO) show that women are more likely than men to be target women in China. The report states that, “[…] the concerned about being a burden to their families (for market would seem to be ripe for a company to develop example, due to outstanding debts).18 Women, particularly and implement a women’s marketing initiative,” as working mothers, also want peace of mind in controlling women in China buy life insurance for “[…] security, to who will receive their financial benefits after they pass protect their families, and provide peace of mind.”19 away, as they want to leave their assets to their children. Graph 6: Life Expectancy in Years of Women vs. Men in the 10 Focus Markets Women Men 77 76 74 77 73 68 79 75 77 78 70 70 68 64 72 69 71 71 52 52 Brazil China Colombia India Indonesia Mexico Morocco Nigeria Thailand Turkey Source: Economist Intelligence Unit, “Country Forecast,” Economist Intelligence Unit Database, accessed January 2015. Graph 7: Gap in Years Between Life Expectancy and Statutory Retirement Age for Women and Men Women Men 22 21 20 17 18 17 14 13 14 12 11 11 10 10 10 9 6 5 Nigeria Brazil China Colombia India Indonesia Mexico Morocco Thailand Turkey -8 -8 Note: The negative gap experienced in Nigeria occurs as the average life expectancy is lower than the average pension age. This does not represent all individuals, but is instead an average across the country. Sources: Economist Intelligence Unit, “Country Forecast,” Economist Intelligence Unit Database, accessed January 2015. International labor Office, “ILO Social Security Inquiry; Indicator: old-age pensioners recipient ratio above retirement age,” ILO Database, accessed April 2015. 17 C — Projected Growth in Health Globally, the annual women’s retail health insurance Insurance market is estimated to be $43 billion in 2013, and is expected to grow to $162 billion to $184 billion with an Demand for health insurance is attributed to a complex annual CAGR of between 8.2 percent and 9 percent by interplay of income level, availability of private healthcare, 2030. While limited data is available on the global retail public health systems, and population growth, so no health insurance market size, the total global private single factor can be attributed to the growth predicted in health insurance market, which includes both individual the women’s market. insurance spend and employee benefit coverage, is currently valued at $1.25 trillion,22 with a projected CAGR Although the present monetary value for women’s of 3.2 percent.23 retail health insurance is low in comparison to other product lines,20 interviews with women across the 10 focus markets show great demand for private health insurance. Currently, most health insurance coverage is extended either through the government or the employer. However, as women transition from the lower “Having private healthcare coverage is the to middle income brackets, they are increasingly seeking second most desirable item in Brazil after having better coverage, treatment facilities, and faster care for your own house.” themselves and their families.21 Out-of-pocket payment — Representative, BTG Pactual Asset Management Bank, Brazil for these enhanced medical treatments may become too expensive without insurance coverage, hence the increasing demand for private health insurance. Life insurance policies which include savings and retirement products are especially important for women due to their longer life expectancy 18 Across the 10 focus markets, the current annual retail comparison, the predicted CAGR of the total private health women’s health insurance market value of $5 billion is insurance market, in emerging markets, which includes projected to grow by a CAGR of 10.8 percent to 13.8 percent both individual insurance spend and employee benefit to reach $29 billion to $46 billion by 2030. The women’s coverage, is 9.6 percent, with the highest growth projected retail health insurance market is projected to be the largest in Asia.24 in China and Brazil (see Figure 3, Graphs 8 and 9 below). In Figure 3: Projected Women’s Private Health Insurance Market Size in 2030 in the 10 Focus Markets Legend Market Potential High (>$1 B USD) Medium ($0.1–1 B USD) Long Term (<$0.1 B USD) Graph 8: 2013 Women’s Private Graph 9: 2030 Women’s Private Health Insurance Market Size in Growth from 2013-2030 Health Insurance Market Size in (As a Multiple of its 2013 Size) the 10 Focus Markets (USD) the 10 Focus Markets (USD) China $3 B 5 – 9X $18 – 28 B Brazil $2 B 5 – 8X $9.4 – 14.8 B Thailand $100 M 5 – 8X $520 – 810 M Mexico $77 M 6 – 9X $433 – 669 M Colombia $40 M 5 – 7X $200 – 300 M Turkey $15 M 8 – 13X $122 – 189 M India $50 M 2 – 3X $107 – 169 M Indonesia $2 M 9 – 15X $16– 25 M Morocco $2.8 M 2 – 4X $6.6 – 10.2 M Nigeria $0.2 M 9 – 13X $2 – 3 M 19 D — Projected Growth in Non-Life 3.1 percent and 4.1 percent, above the 2.7 percent CAGR Insurance projected for the overall global retail and commercial non-life market.27 Globally, the annual women’s retail non-life insurance25 market is estimated to be $279 billion in 2013, Across the 10 focus markets, the current annual women’s approximately 35 percent of the estimated total retail retail non-life insurance market value of $38 billion is and commercial non-life insurance market value of projected to grow by a CAGR of 11.6 percent to 14.4 $784 billion.26 By 2030, the annual retail women’s non- percent to reach $242 billion to $370 billion by 2030. The life market is expected to grow to between $465 billion women’s retail non-life insurance market is projected and $554 billion. The CAGR of the women’s global retail to be the largest in China, Brazil, and Turkey (See Figure non-life insurance market is predicted to be between 4, Graphs 10 and 11 below). In comparison, the predicted Figure 4: Projected Women’s Non-Life Insurance Market Size in 2030 in the 10 Focus Markets Legend Market Potential High (>$20 B USD) Medium ($5–19.9 B USD) Long Term (<$5 B USD) Graph 10: 2013 Women’s Non-Life Graph 11: 2030 Women’s Non-Life Insurance Market Size in the Growth from 2013-2030 Insurance Market Size in the (As a Multiple of its 2013 Size) 10 Focus Markets (USD) 10 Focus Markets (USD) China $26 B 6 – 9X $152 – 232 B Brazil $3 B 9 – 14X $27.7 – 42.3 B Turkey $3.2 B 8 – 13X $26.7 – 40.4 B Mexico $2 B 7 – 10X $13.6 – 20.9 B Colombia $1.7 B 6 – 9X $9.9 – 15.2 B Nigeria $560 M 8 – 13X $4.6 – 7.1 B India $1.1 B 4 – 6X $4.4 – 6.9 B Indonesia $200 M 10 – 17X $2– 3 B Thailand $190 M 6 – 8X $1.1 – 1.6 B Morocco $10 M 3 – 4X $27.5 – 42.1 M 20 CAGR of the total retail and commercial non-life insurance 1. Socioeconomic progress enhances women’s market across emerging markets ranges from a CAGR of ability to spend. Trends in women’s socioeconomic 4.2 percent to 7.7 percent28 progress, and hence growth in women’s insurance purchase, vary by market; however, in general, as more While a rise in women’s income and independence may women earn an education and enter the labor force, their not be observed across all markets and segments,29 for spending power will increase. women who are accumulating wealth independent from their spouses or families an increase in their purchase of Trend 1: Increase in women’s tertiary education. Nine out assets is expected, such as cars and homes, which will of the 10 focus markets have experienced an increase need non-life or Property and Casualty (P&C) protection. in women’s tertiary education enrollment from 2008 This is forecasted in particular for single, salaried women. – 201431 (see Graph 12 below). The average increase in In addition, as women purchase more expensive assets, a tertiary education enrollment was 6 percent per year for proportional increase in insurance coverage is projected.30 women, compared to 4 percent per year for men. A report by Goldman Sachs indicated that tertiary education builds E — What’s the Growth Engine? skills “important for the development of new knowledge and adaption of new technology.”32 While the impact of Market research in the 10 focus markets identified two tertiary education varies by region, the additional skills opportunity drivers for the women’s market growth. learned through tertiary education can have a direct link The first opportunity driver is the progress in women’s to women’s ability to access formal jobs.33 socioeconomic conditions. In markets where more women are gaining tertiary education, entering the labor Organisation for Economic Co-operation and force, and earning a higher income, they have a higher Development (OECD) studies also connect tertiary ability to spend on insurance. The second opportunity education to a better understanding of formal risk driver is an increase in women’s willingness to spend mitigation tools.34 As more women gain tertiary on insurance. With increased income, women are also education, more will understand the value of formal enjoying greater spending and household bargaining protection methods, such as insurance, to mitigate their power. These two opportunity drivers are observed in the personal and business risks. This was also reflected in the 10 focus markets, but occur to varying degrees, requiring market interviews — 55 percent of insurers and regulators a local perspective to understand how they apply to each interviewed believed that tertiary education has a positive market and income segment. correlation with insurance purchase. Graph 12: Female Enrollment in Tertiary Education in the 10 Focus Markets (%) 2008 2014 64 59 48 47 29 29 32 32 30 28 25 28 21 20 15 13 10 11 8 9 Brazil China Colombia India Indonesia Mexico Morocco Nigeria Thailand Turkey Source: World Economic Forum, “The Global Gender Gap Report,” Insight Report, (2008 and 2014). 21 Trend 2: Increase in women’s labor force participation. As women enter the workforce, they are more likely Although overall labor force participation rates globally than men to ask for insurance from their employers. An have stalled due to economic slowdown,35 female labor International Foundation for Electoral Systems/Institute force participation has increased in five of the 10 focus for Women’s Policy Research (IFES/IWPR) study showed markets — Brazil, Mexico, Morocco, Nigeria, and Turkey36 that in Morocco, more employed women than employed (see Graph 13 below). The growth rate in female labor men receive employment benefits, including insurance;37 force participation across these five markets ranges from 26 percent of working women hold employer-provided 1 percent to 4 percent per year. In comparison, higher health insurance, compared to only 14 percent of working growth in men’s labor force participation has only been men, and 27 percent of working women hold pension/ experienced in Brazil and retirement products compared to 17 percent of working Thailand, with growth rates men.38 In addition, evidence from the United Kingdom ranging from 0.2 percent to showed that more women than men value medical 0.4 percent per year. Higher “As women are insurance from their employers (32 percent women vs. 24 growth in women’s labor more educated, percent men selected health as a top workplace benefit).39 force participation means they will that within these markets, have greater Trend 3: Increase in women’s income in emerging markets. more women are gaining acknowledgment of While a wage gap still exists, women’s income is expected access to income and the to grow at a faster rate than men’s. Within emerging products and risks, capability to purchase markets, women’s income is expected to rise at 8.1 which will result insurance. percent per year, compared to the 5.8 percent growth in an increased rate projected for men.40 Within the 10 focus markets, willingness women’s income is expected to grow at rates ranging to purchase from 3 percent to 13 percent per year, with the highest insurance.” growth rate projected in Brazil, Indonesia, and Nigeria, and the lowest in India and Morocco (see Graph 14 right). — Executive, Zurich Insurance Group, Bogotá, Colombia Graph 13: Female Labor Force Participation Rates in the 10 Focus Markets (% of women ages 15–64) 2008 2014 75 72 70 71 67 62 65 59 53 53 48 47 48 43 36 36 30 29 29 32 Brazil China Colombia India Indonesia Mexico Morocco Nigeria Thailand Turkey Source: World Economic Forum, “The Global Gender Gap Report,” Insight Reports, (2008 and 2014) 22 Graph 14: Women’s Estimated Earned Income in the 10 Focus Markets (PPP, US $) 2008 2014 12,157 10,821 10,468 10,501 8,499 8,538 6,204 5,975 6,039 6,695 5,220 5,680 4,029 4,385 2,410 3,123 1,620 1,980 1,846 652 Brazil China Colombia India Indonesia Mexico Morocco Nigeria Thailand Turkey Source: World Economic Forum, “The Global Gender Gap Report,” Insight Reports, (2008 and 2014) 65 percent of insurers and regulators interviewed for Trend 1: Women may have more household bargaining this study agreed that there is a positive correlation power and independence with increases in income. A between insurance purchase and women’s income. Goldman Sachs report states that as women earn more Different markets show different understanding of how income and increase their household financial contributions, income is related to insurance purchases. In Morocco, they tend to have greater influence on household spending.43 an executive from Wafa Insurance stated, “There is an 83 percent of working women clients interviewed for this S shape relationship between women’s income and study either jointly — with their spouses — or independently insurance purchase — purchasing rate is low in the make financial decisions for their households. Women in lower income bracket, grows rapidly within the middle Morocco were more likely to make joint decisions with income bracket and levels out within the higher income their spouses, while women in China and Thailand were bracket.” According to the executive, women in the upper more likely to make decisions independently of their income class are more likely to seek add-ons to their spouses. As contributors to household decisions, women current insurance policy as opposed to purchasing new spend differently, focusing their dollars on improving and products. In contrast, in Mexico, an executive from Zurich protecting their household welfare. Seguros stated that the relationship between income and insurance is a “U” shape, where the lower and higher Not only are more women making their own financial income brackets recognize the need for insurance, while decisions, they are also increasingly heading up house- the middle income bracket assumes it has the wealth holds. A Goldman Sachs report states that 20 percent of to pay out of pocket. Given the market differences in households globally were headed by women in 2009, espe- purchasing behavior, it will be important for insurers to cially in Mexico, Nigeria, and Turkey, where female-headed understand the unique relationship between women’s households are becoming increasingly common due to income and the purchase of insurance in each market. urbanization.44, 45 As more women head up households, a corresponding increase in women making insurance 2. Increase in women’s willingness to spend on purchasing decisions for their families is expected. insurance. As women’s economic contributions to their household increase, they gain bargaining and spending For example, a South African mutual insurer, Assupol, power and have shown to be more willing to spend on found that as women become more substantial insurance. However, the World Development Report 2012 contributors to household income, they are more likely noted that this may not be consistent across all markets to purchase insurance than men because they are more and income brackets.41 In some societies, improvements concerned about protection.46 For Assupol, women in women’s economic position may challenge existing accounted for two-thirds of its new sales in 2014, higher societal norms on women’s roles and lead to conflict than what was predicted by the gender makeup of its within the family.42 Therefore, it is important to take client base.47 existing social and cultural factors into account when considering the following trends in any individual market. 23 Trend 2: Women are more risk- 6.2 WOMEN: VALUABLE CLIENTS aware and are willing to “It’s not about pay for peace of mind.48, 49, 50 the probability Not only does the women’s market show high Women are more risk-aware of something growth potential, but women’s behaviors, roles, and than men,51 and are willing happening. It’s responsibilities also make them an attractive customer to spend more than men to about me sleeping base that can help insurers improve their operational protect against risks faced by risks, lower operating costs and grow their customer better at night themselves and their families. base. knowing that my For example, women across children and family demographic segments in are protected, A — Both Honest... China, Mexico, and Nigeria indicated that they were because accidents Academic studies on fraud behavior have shown that willing to spend 10 to 20 happen all the women are less likely to engage in fraudulent behavior, percent of their income to time.” and file fewer fictitious claims than men.52 Similarly, protect against risks in the — Lin, Working Mother, an Accenture study found that globally, 86 percent of future, compared to the 7 t0 Beijing, China women vs. 82 percent of men found it unacceptable to 10 percent stated by men in overstate the value of their claims.53 The same Accenture China and Mexico. Patricia, survey revealed that 12 percent of women vs. 17 percent a young professional in Mexico City, Mexico, stated, “I’d of men overstated their auto insurance claim, while 17 rather spend some of my income now to make sure I percent of women vs. 24 percent of men overstated have a [financial] backup in case something happens.” their home insurance claim.54 Fraud is a major issue Currently, women in these markets spend between 5 for insurers — a study by the U.S. Insurance Research and 8 percent of their income on insurance, indicating Council indicated that $.17 to $.29 of each dollar spent enormous potential for growth. on motor claims covers consequences of fraud.55 By growing the percentage of clients who are less likely to Trend 3: Women act as conduits to the family. Women, commit fraud, insurers can grow their revenues without particularly working mothers, tend to purchase insurance a proportional increase in fraud risk. for their parents, spouses, and children. For example, Bai, a female agent in Beijing, China, stated, “In China, buying insurance for the family is often a woman’s task because B — ...and Loyal they are more likely to be concerned about the needs of the family. Men are more self-focused, while women Another finding of the Accenture study shows that spend money to promote their family. The majority women clients were 8 percent less likely than men to of my [life insurance] clients are women; they are the switch their insurance provider,56 while a study in the ones asking me for family Netherlands indicated that women respondents were products.” less likely than men to switch health insurers (83 percent vs. 81 percent).57 A study by Bain & Company in the As conduits to their larger “Women are United States found that a loyal active client’s lifetime family, targeting women vectors for the value is worth close to seven times that of a detractor, clients can both increase promotion of and two to three times of a passive client.58 Given that the number of products an insurance. They loyal clients purchase more products and usually cost insurer can cross-sell, and are protective less to serve, women clients represent a potentially decrease costs by channeling profitable market segment. and could indeed distribution through one influence greatly decision-maker or influencer. the uptake of insurance.” — Executive, Société Centrale de Réassurance, Casablanca, Morocco 24 C — Women — Great Brand Ambassadors 6.3 BIRTH OF A SALESWOMAN: WOMEN ARE A HIGH PERFORMING Women can act as strong advocates, or social marketers, for insurers and financial services firms. Discussions with SALESFORCE insurers such as AXA Group, Zurich Insurance Group, and Embedding women within and across — from back-office Liberty Seguro, as well as brokers such as Willis across the to client facing and management positions — in the 10 focus markets show that women are more likely than insurance salesforce is essential to ensure products, sales, men to recommend a product or service to their friends and distribution methods meet the diverse needs of men and family. Women are also greatly influenced by the and women clients. advice of their female peers. Research from Investment News shows that, on average, women make 26 referrals over their lifetime to their financial advisors — more than A — Women’s Input Throughout the twice the average of 11 referrals made by men.59 Women’s Insurance Value Chain role as informal advocates is extremely valuable as they can be leveraged to cultivate an informal salesforce for The perspective and input of women is essential to the insurers to grow their customer base without significant insurance value chain, from product conceptualization increases in distribution costs. to the point of sale. In developed markets, research shows that female employees tend to grow insurers’ bases of female clients.60 Women employees can also act as advocates for the insurers they work for, informally Advocates for the insurers In societies where customs they work for prevent women from interacting Able to understand with the opposite and meet the gender, women protection needs of WOMEN agents should be the entire family ARE A HIGH further leveraged PERFORMING Women’s Good at building SALESFORCE perspective and long term relationships input are essential to the insurance Successful in selling value chain, to other women from product and men conceptualization to the point of sale 25 educating their network on the benefits of insurance. In those sold by men agents.61 Aegon Religare Life Insurance addition, leveraging women as a salesforce is particularly found that while 31 percent of agents are women, they important in societies where customs prevent women bring in close to 40 percent of Aegon’s total business.62 from interacting with the opposite gender. By recruiting women within the insurance salesforce, insurers in these Early evidence provided by AXA in Asia in the general societies may be able to increase their penetration of the insurance and life product lines indicates that there is women’s market. some positive relationship between the percentage of women in the salesforce and percentage of women retail clients (see Graph 15 below). B — More Who than What There is a strong case for increasing the number of Discussions with agents and insurers have shown that women in the salesforce, which is beginning to be men tend to be more product- and transaction-focused, recognized by the industry. Insurers in some markets while women are more relationship-focused. In Brazil, have developed or launched initiatives to actively recruit discussions with Willis highlighted that women brokers and retain more women agents. For example, at Aegon are better able to understand and meet the protection Religare Life Insurance in needs of entire families, not just the needs of other India, the proportion of women. In Nigeria, representatives from Ark Insurance women advisors rose from Brokers stated that women are “…better at building long “I have a very young 24 percent to 31 percent from term relationships and building trust.” son, and I need to be 2008 – 2011 due to active able to take care of recruitment campaigns.63 AXA Sales results in selected markets have also reinforced this. him at all times of Indonesia has also developed In China, interviews with executives at ICBC-AXA show the day while making a targeted recruiting that women agents are not only successful in selling to an income. Being an campaign for women agents. other women, but also demonstrate successful sales agent means I can skills overall. While 50 percent of the salesforce at ICBC- arrange my meetings AXA are women, they make up over 60 percent of high around his needs.” performing sales agents. In India, data from Bharti AXA Life Insurance show that the average premium per policy — Sai, Insurance Agent, sold by female agents can be up to 50 percent higher than Bangkok, Thailand Graph 15: Trend Between AXA’s Women Salesforce and Women Clients in Asian Markets 80% 60% Percentage of Women Retail 40% Clients 20% 0% 0% 10% 20% 30% 40% 50% 60% 70% Percentage of Women in the Distribution Force Source: AXA’s Asia Life Subsidiaries 26 Case Study 1: Women Brokers and Agents Are Trusted Advisors While the insurance industry in Morocco is still by providing tailored risk management advice male-dominated, some women see insurance and product recommendations. She also as a good business opportunity and are very explains the intricacies of exclusions and the successful at it. Tourya Tazi (referred to as claims process, which are key client pain points. Mme Tazi) left her executive position after Having women like MmeTazi in the insurance 40 years of working for insurance companies salesforce helps build a trusting relationship to open JASSUR, one of three women-owned between the industry and clients. brokerages in Casablanca, Morocco. By opening her own brokerage Mme Tazi wanted to provide JASSUR is also a leader in integrating women clients with tailored advice and customized agents into the salesforce. Mme Tazi stated, recommendations while also developing the “Women can perform in anything once they have skills of women agents and brokers to help them training.” Her focus on providing mentorship and advance in the industry. training to women agents has resulted in women representing over 50 percent of the agents In describing her approach to insurance, Mme at JASSUR. This unique approach to engaging Tazi stated, “Honesty is the first point in women agents has resulted in women being able building my client relationships as I want to to prosper and grow, and provides a model that be a trusted advisor.” Mme Tazi goes beyond insurance companies can replicate to benefit satisfying clients’ insurance needs by taking the their bottom line. time to understand what clients really need and 27 Case Study 2: Effective Recruitment of Women Agents in Indonesia AXA Indonesia’s “Wanita Hebat” (Amazing AXA has monitored the results of the program Women) recruiting program is unique in its since its October 2014 launch, and early results focus on targeting educated women for agent show an increase in the number of monthly positions. The media campaigns — conducted recruits. Events are held in over 50 cities in through radio, press, magazine and online Indonesia, allowing for broad recruitment in channels — use women in the advertisements key geographies. From January to March 2015, and are focused on print sources and websites the number of women who responded to the that women use most. For example, the campaign recruitment program increased by 36 percent, targets women lifestyle websites, such as Detik from 896 to 1,220. In addition, the conversion Wolipop, and Facebook profiles of women that rate of candidates to certified agents has fit the target age, gender, location and interest. increased from 40.6 percent to 43.9 percent. Interested candidates are invited to The program is in its early days and several recruiting events, where they not only hear months are still needed at the time of printing to testimonials about the agents’ experience and be able to confirm its sustainable success. the screening process, but also participate in a half-day education session promoting financial empowerment for women. This type of campaign not only increases transparency into the recruitment process, but also provides financial education to all candidates. 28 Finally, women agents enjoy the flexibility of the A — Financial Protection for Women agent lifestyle. The women agents interviewed in the Translates into Increased Investment in focus markets cited flexibility, low education and/or Families and Society. age requirements, and good income opportunities as benefits to being an insurance agent. Diana, an agent Women are sensitive to the needs of their community, in Bogota, Colombia, stated, “Being an agent allows for and tend to invest their discretionary income in the independence and self-management of my time. I was education of their children, the healthcare of their family, able to stop when I had a child and come back without and improving their housing to a far greater degree than too much trouble.” Anita, an agent in Lagos, Nigeria, said, men (90 percent vs. 30 to 40 percent).64, 65 In a global “Being an agent provides me with security and economic study by the Center for Talent Innovation, 90 percent power.” of women indicated that making a positive impact on society is important, and saw an increase in their wealth as an opportunity to improve society in general.66 Hence, by protecting women’s financial interest and educating 6.4 PROTECTING AND INSURING them about risk mitigation methods to improve their THE HALF IS INVESTING IN THE own financial situation, insurers will empower and enable more women to invest in their communities. WHOLE Insurance can empower and enable women to improve B — Increasing Women’s Insurance their own living conditions through mitigating risk. By Coverage Can Contribute to Making providing compensation and services for women in the Them an Economic Driver. case of life hazards such as the death of a spouse or female-specific health problems, insurance will reduce In addition to improving women’s financial stability the need for women to spend their discretionary income and discretionary income, increasing women’s on expenses related to these life hazards. This enables insurance coverage has significant effects on economic women to free up their discretionary income to invest development as a whole. For example, as women are in their families and communities. In addition, insurance more likely to spend on healthcare, increasing their will help women recognize and anticipate risks, behaviors ability to do so with well-structured insurance products they will pass on to their family and community, can multiply private healthcare spend, thus allowing ultimately influencing the risk-taking behavior of their the sector to grow. When insurers help women protect community. their increased assets and spending power, women will be able to invest more into other industries to help their development. Finally, given women’s increasing presence in the labor force as employees or business owners, better protecting them and their earnings will contribute to economic progress.   29 Women’s lifecycle events are crucial opportunities for insurers to help women with their changing protection needs 30 7. To Each Her Own W ith significant growth potential in the women’s market, how can insurers begin to target women and meet their diverse and evolving needs? Women want recognition that their needs are different from men’s. For example, women’s multifaceted roles in their homes and at work mean they are often time-constrained. As a result, women may not have as much time as they want to research insurance products. They look for insurance products and services that will help them save time. In addition, women’s financial services needs and 7.1 IT’S NOT ALL ABOUT MONEY preferences vary by age, income level and lifecycle events.67 While both men and women experience lifecycle The interviews with women in the focus markets and events, women are more likely to make key financial secondary research revealed six common insurance needs decisions related to such events.68 An interview with a and preferences that women display across markets, young couple in Beijing revealed that the woman only income segments, and lifestyle characteristics. considered purchasing insurance when she had a child and when her parents needed long-term care, while A — Wanted: Wrap-Around Services her spouse purchased insurance based on the perceived additional value the insurance provided, regardless of life Women play multifaceted roles inside and outside their events. Women’s lifecycle events are therefore crucial homes, and are looking for solutions to help them save opportunities for insurers and help women with their time. For example, it is not sufficient for insurers to changing protection needs. provide financial compensation for a loss, as women increasingly want services to help them save time in Research in the 10 focus markets shows that gender- recovering from a loss. Over 50 percent of women disaggregated data is collected to calculate product interviewed for this study identified wrap-around pricing, but not to design targeted products for women. services as a key factor in decision making — with higher This lack of a customer-centric view means insurers do preference for such services in Brazil, Colombia, Morocco, not understand how women’s insurance needs differ from Mexico, and Nigeria. An Accenture study on client men’s, or how women’s needs differ from one segment service showed that globally, 76 percent of women cited to another. As a result, insurers approach the market personalized services as an important criterion in deciding with gender-agnostic products and services that are still on an insurance provider, as compared to 73 percent of designed to meet the needs of the male client.69 men.70 Whether single, married, young or aging, women are constantly balancing the demands of their home and professional lives, and want services to help ease the balance. 31 B — The Sandwich Dilemma: Women insurance companies would do Need Help with Care the same — to remind me why “Having insurance I should stay with them.” is more secure than One particular service women need help with is to marrying a rich relieve them from the burden of their role as caregivers. husband. In the D — Individual Asset The World Development Report 2012 estimated that, case of a divorce, Protection compared to men, women devoted one to three hours the woman will more per day to housework and two to 10 times the As women accumulate at least maintain amount of time per day to caring for family members.71 income and assets, they are her insurance Across the globe, women are the primary caregiver increasingly turning to life for their dependents — whether they are sick, elderly policy investments insurance products to protect or young.72 For example, a study in Brazil indicated under her name, their wealth outside of their that eight out of 10 women worry about caring for as opposed to household and independent their elderly parents/in-laws, compared to six out from their spouses and losing them to of 10 men.73 Caregiving can be a significant financial family members. Regardless her husband like and emotional drain on women. A study in Singapore of income or the number of she would lose a found that 60 percent of female caregivers experienced dependents, many women home.” exhaustion compared to 32 percent of male caregivers, interviewed articulate with stress levels higher for caregivers who need to — HuaChing, Head of concerns about protecting provide assistance with daily living activities.74 Women Household, Beijing, their income and assets during see insurance as a way to improve the level of care they China changes in their legal status, provide to themselves and their family. from marriage to divorce or widowhood. This was particularly apparent in interviews C — Tangible Benefits with women in China, Mexico, and Nigeria, where women tend to share property rights with their husbands, but 77 percent of women interviewed expressed a desire societal custom favors men as the sole property holder. for immediate benefits from their insurance products, In the case of death or divorce, the woman may not such as a loyalty program. Research by the ILO finds that be entitled to the land or assets she once shared with women, even more so than men, want to see where their her spouse. The type of security provided by insurance money goes and how the product improves their current products could provide women in these markets with financial situation.75 In addition, insurance often competes some peace of mind. In Nigeria, research shows that for the same share of the women do not often inherit their spouses’ assets in the wallet as other consumer case of widowhood,76 so women may need to seek out goods, so women need “Women are rational, alternative ways to protect their share of the assets. to see the benefits to and interested justify the spend. In Brazil, in details. They E — Informed Decisions Colombia, Mexico, and ask more about Thailand, women wanted the product’s A study from Women’s World Banking found that women discounts on other services, characteristics and will invest more time upfront to understand the details of such as health clubs, their financial services products.77 An interview with AIG the details of the and loyalty rewards to in Thailand found that even though women may purchase coverage. Compared integrate insurance within online, they will still call to discuss the product in more their everyday lives. June, to male clients, detail before buying. It is important that women receive a working professional in female clients need the full set of information they need to be assured in their Thailand, stated, “My bank to be more assured insurance purchasing decisions. provides me with all these of the benefits, discounts to food vendors, especially as a new so every time I go purchase client.” something from there, I am reminded of why I — Executive, AXA, Istanbul, stay with the bank. I wish Turkey 32 F — Dialogue and Efficiency group members purchased through banks, agents, and brokers, as they wanted advice on their personal Women’s needs are not just focused on products. Across situation. However, studies have shown that women all markets and segments, women wanted efficiency in the may not always be getting the personalized advice they distribution channels. They want to access the information want; a report by Michael Silverstein and Kate Sayer when they want it, where they want it. Efficiency should found that women see financial institutions as degrading, not come at a cost to personalization. An Accenture study contradictory, and lacking specialized advice.79 Agents, found that 70 percent of women vs. 61 percent of men brokers, and bancassurance representatives need to take a wanted more advice on overall risk management outside customer-centric view to understand what women want of their specific product.78 The majority of women focus before providing personalized risk management advice. 82 percent of women cited trust as important in choosing and switching insurers 33 7.2 ONE SIZE DOES NOT FIT EVERY WOMAN In order to realize the growth opportunity presented in this report, insurers must abandon the one-size-fits-all approach, and instead identify and target segments of women who share common needs and constraints. The following section identifies five segments of women based on their socioeconomic bracket, dependents, and income status. This section will discuss the demographics, needs/preferences, and constraints faced by each segment. A more detailed analysis is required to address these segments in each market, because segment characteristics and sizes vary across markets. Dependent Status and Income No Dependents, Aged/No Business Dependents, Sharing Dependents, Demands, Generating Wealth Living Off Generating Wealth Wealth Economic Value Socio- Economic Bracket: Upper Segment 1: Segment 2: Segment 3: Segment 5*: Middle Salaried Working Retirees Women Women Without Mothers Entrepreneurs Children Socio- Economic Bracket: Lower Segment 4: Low-Income Customers *Segment 5, women entrepreneurs, will be discussed in Chapter 8. 34 A — SEGMENT 1: SALARIED WOMEN WITHOUT CHILDREN Women are looking for insurers that see more in them than just mothers or wives CHARACTERISTICS CONSTRAINTS SOLUTIONS • Single • Gaps in coverage as a result • Provide personalized of underestimation of her insurance and investment • Career-oriented risk profile strategy based on insurance needs and risk profile • May have a tertiary degree • Feels ignored by insurers who only see women in • Develop a dedicated sales • May have accumulated their capacity as wives and approach to improve assets and/or wants to grow mothers only salesforce communication of her existing assets insurance solutions • Unfamiliar with financial • Researches extensively products • Provide targeted solutions before making significant based on income bracket purchases • Lacks trust in insurers • She surfs the web for financial products and advice 1. Insurance Needs and Preferences After a promotion or growth in assets, she wants a personalized strategy. As women in this Early in her career, she is focused on growth, and wants segment mature, they tend to shift investments to less products that will help grow her existing assets and risky products. They need better investment advice to help protect her income and quality of life. This segment them manage these decisions.80 They may want to develop is looking for products that emphasize investments, an investment strategy and want more tailored advice. and allow her to make the most of her education and independence. She surfs the web. 54 percent of women surveyed for this study said that they are willing to purchase insurance if it is available online. While a similar number expressed interest in researching via mobile, only 45 percent were willing to actually purchase via mobile due to concerns about payment security. 35 2. Constraints Faced in Accessing Insurance Gap in Coverage. As women start to earn an income, the challenges and risks they face in their lives progress and change, and they may need to protect higher-value assets. Due to these changes, middle-income working women without children may underestimate their new risk profile, resulting in insufficient insurance coverage. Upper-income working women without children may believe that they can cover any potential losses from their income. This presents an opportunity for financial advisors and agents to work closely with these women to provide them with advice and address their full risk profile. Feeling Ignored. Salaried women without children may feel ignored by insurers who tend to see women only in their capacity as wives and mothers. With regards to upper-income women, a BCG report found that despite having ample wealth which they are willing to invest, Case Study 3: HDFC in India Covers Women’s Needs In Case Any of These Three Events Occur The “Smart Women” Plan offered by HDFC The Smart Women Plan is unique in the sense Standard Life in India is a unit-linked investment that it is a savings product with a critical illness life insurance product that not only enables component tied to different life events, as women to grow their assets, but also provides opposed to being tied to a specific disease like coverage for women’s specific needs including other critical illness products. The product is pregnancy, female-specific cancer and death targeted toward independent women in urban of a spouse in its 10 to 15 year coverage term. areas, to help them meet their financial goals In the case that any of the three events occurs, while catering to their needs. depending on the level of coverage, the premium will be waived for three years, HDFC Launched in 2012, the product sold 4000 policies will continue to fund the premiums during in its first month, and was awarded “Product of that time, and policy holders will receive cash the Year” in 2013, based on Nielsen’s Consumer payouts. The product continues the savings Survey. It continues to experience strong sales component of the plan, while helping women to in the market. adjust to major life events. 36 women feel that insurers are more interested in targeting Distrust of Insurers. Issues of corruption, limited the family pocketbook rather than spending time with client protection laws, and lack of transparency in the high-income women without dependents.81 claims process can make trust an issue for men and women in all markets.84 However, women, especially Feeling Unsure. OECD studies have shown those early in their careers with limited exposure to the that women are less confident in making financial insurance industry, value trust more than men. Moreover, decisions compared to men, regardless of their actual the consequences of women’s lack of trust have a greater understanding of financial concepts.82 This may be impact on their likelihood to renew and refer products especially true for women early in their career, or for to their peers. An Accenture study on client behavior those who are progressing from a lower income segment, showed that more women than men value trust in their as they have less exposure to financial products. Women insurers (82 percent of women cited trust as important in who are not involved in the long-term financial planning switching insurers, compared to 76 percent of men), and of their households perceive financial topics to be women ranked lack of trust higher than men as a reason complex and technical and often defer financial decisions to switch.85 to others. This lack of confidence may result in a lower willingness to purchase financial products.83 54 percent of women surveyed said that they are willing to purchase insurance if it is available online 37 B — SEGMENT 2: WORKING MOTHERS Women need insurance solutions that ease their time poorness CHARACTERISTICS CONSTRAINTS SOLUTIONS • May have a tertiary degree • Cultural constraint in • Develop awareness household decision-making campaigns on the benefits • May be married or getting in some countries of insurance for the children, married, or single or and the family widowed • Lack of adequate female salesforce might prevent her • Develop family solutions for • Time-crunched, managing from buying insurance in health insurance both family (children, elderly some countries dependents) and professional • Engage more women as duties • Lack of clarity in coverage sales agents so that they can and easy-to-understand provide financial advice • Increasingly planning ahead policy information for children’s future • Develop more one-stop- • Lack of products that will shop distribution channels • May be self-employed or reduce the burden on responsible for managing the managing household and • Develop add-ons and household worklife products that will help save time 1. Insurance Needs and Preferences She wants products that reduce the burden on managing household operations. As women As she grows her family, she values full family manage multiple roles, they may be willing to pay for protection. Discussions with insurers show that women services to help them in accomplishing their tasks. in this segment often take the lead in purchasing insurance Gabriela, a working mother in Mexico City, Mexico, stated, for their families, and want comprehensive bundles for “I wish there were more products to help me manage their entire family. Women in this segment not only value the needs of my son, as well as something to help me insurance products such as health, property, and casualty manage my stress levels. I want more flexibility outside that will support their family today, but also savings of just financial protection.” This segment sees insurance products, such as pensions and education insurance, to as a product that can offer them both protection for prepare for the future. themselves and their dependents, but also add-on services such as childcare or service assistance that help better manage time at work and at home. 38 As income grows, she For some women, online channels may provide this reaches for high- “Women want convenience and improve their time management. A quality products that insurance packages study by BCG indicates that many affluent women under will improve her family’s and the flexibility the age of 50 prefer to do their banking online wherever health, well-being, and to customize them possible, as online channels make it easy and convenient quality of life. In many based on their to find the information they need.86 markets, health insurance family’s needs. is seen as an extremely They are more 2. Constraints Faced in Accessing Insurance valuable asset, and the likely to think ability to pay for private, premium healthcare is highly of the future for Cultural constraints in household decision themselves and making. In markets such as Morocco, Nigeria, and desirable. Women, who are more focused on investing their children.” Turkey, there continues to be a division in household decision making based on gender. In these markets, in their family’s health, will — Executive, AXA, women generally make decisions on day-to-day want more extensive health Sao Paulo, Brazil household needs, while long-term financial planning coverage. decisions are often carried out by their spouses.87 In In periods of uncertainty, she is increasingly addition, while women may influence financial decisions, self-reliant and requires a more formal social and cultural norms that restrict women’s mobility protection system. Populations such as single and interactions with the opposite gender also reduce mothers or divorcees may have a smaller social network, their access to insurance and financial services in which results in a smaller informal safety net. These general.88 For insurers without an adequate female populations may find greater value in formal insurance salesforce, this may greatly inhibit their ability to reach protection. the women’s segment. She wants a one-stop-shop in distribution. She wants clear, easy-to-understand Working mothers are busy and want to have all their information. Women are more likely to read the financial services needs met by one channel, and are full policy than men; however, due to time constraints, likely to seek out bancassurance for convenience. This is working mothers may not have time to read through the especially prevalent in Brazil, China, Colombia, Mexico, fine print. Therefore, they are more likely to be frustrated and Turkey, as the integration of banking and insurance with the technical language. In addition, the frustration information means bank agents can proactively offer is likely to result in more insurance to women based on their banking profile. lead time in purchasing the product due to their need “All the details for clarification. 57 percent on coverage and of women interviewed in claims are in the focus groups found coverage fine print so I’m information in need of always afraid clarification. Women clients I’m going to miss interviewed in Mexico, something and not Morocco, and Nigeria voiced get paid.” their dissatisfaction with the lack of clarity on payment — Maria, Young times and exemptions. Professional, Mexico City, Mexico 39 C — SEGMENT 3: RETIREES Women need solutions that help them maintain their quality of life and provide for their grandchildren CHARACTERISTICS CONSTRAINTS SOLUTIONS • Educated • Lack of targeted advice • Provide assistance with on how to manage her managing healthcare needs • Focus is on maintaining retirement and savings quality of life after retirement • Provide add-on services that • Lack of affordable insurance support daily life needs • Health conscious products • Develop credit protection • Pragmatic about spending • Lack of products that would products that will help in help her manage household incase of widowhood • Has assets tasks and care for her ageing spouse • Develop investment products • Strong desire to provide to fund grandchildren’s financially for her education grandchildren (education abroad, etc.) • Engage more women as sales agents so that they provide in-person financial advice 1. Insurance Needs and Preferences She wants to provide financially for her grandchildren. Interviews with Banco Itaú in Brazil She may need assistance with managing showed that education investment products were healthcare. As women age, not only do they need to particularly popular among elderly women as they seek manage their own health, but they often also manage to purchase these investments for their grandchildren. the health of their spouses. In addition, with increased Elderly women want to reduce the burden that the cost urbanization, elderly women cannot rely on traditional of education places on their children and ensure their informal methods, such as their children, for assistance. grandchildren can afford an education. As children grow older, they leave their parents’ home for the city, and are no longer close by to support day-to-day In the case of widowhood, she needs to be able care of the elderly. This is especially prevalent in Indonesia to manage on her own. Interviews with Liberty and Thailand, where there is demand for insurance Seguro in Colombia for this study indicated that credit products with wrap-around services to help the elderly protection products for widows are in demand due to manage their health. the longer life expectancy of women compared to their 40 spouses. In the event of the death of a spouse, women life expectancy. Insurers need to recognize that these want to ensure that they can continue to support women worry more about their retirement as they have themselves and maintain a certain quality of life. to make their savings and investments stretch out not just to meet their day-to-day needs, but also to help Her preference is for in-person professional meet the financial needs of their children and possibly advice. Women in this segment want advice from agents grandchildren.89 and brokers, as they are less self-directed in conducting research and less technology-savvy. This segment prefers Affordability: In addition to stretching out their face-to-face discussions and wants to spend time with savings, women in this segment may have limited ability agents or brokers to fully address their needs. They value to afford products with high premiums, despite requiring simple, quality advice on how insurance can be used to complex health and accident insurance coverage. manage their current lifestyle. Mobility: In many of the focus countries, urbanization increases the physical distance between women and their 2. Constraints Faced in Accessing Insurance children. This means that as women in this segment age, they cannot rely on their dependents to transport them Targeted Advice: Women who are retirees, more to insurance agents. than their male counterparts, need targeted advice on how to manage their retirement as they have to account for more years of retirement due to their longer As women age, not only do they need to manage their own health, but they often also manage the health of their spouses 41 D — SEGMENT 4: LOW-INCOME CUSTOMERS Women remain the most vulnerable segment in need of affordable insurance that adapts to their reality CHARACTERISTICS CONSTRAINTS SOLUTIONS • May have children or other • Limited awareness of • Develop affordable, impactful dependents insurance as a protection products that address their mechanism most important concerns • Worries about leaving debt (life, health and crop) to her children • Lack of trust in insurers and whether they will pay the • Partner with communities • Focused on providing for her claim and organizations already family’s basic needs positioned in the market • Cannot afford traditional • Irregular income insurance products • Explore alternative operating models that allow reaching • Limited access to banking • Traditional insurance a massive number of services processes are not adapted to customers (e.g., mobile) her living conditions • Not technology savvy 1. Insurance Preferences and Needs particularly the case in Mexico, Nigeria, and Turkey, where urbanization has driven the migration.90, 91 — This will result She wants basic, affordable durable and in more women managing household finances, and seeking valuable products. With limited discretionary protection for their families. In a 2009 study by ILO and income, self-employed (e.g. farming, trading, handcrafts), Women’s World Banking, a woman from the Dominican or commonly part of the informal economy, the low Republic was quoted, “It’s worrying when you know for sure income population is regularly marginalized from social you’re going to die and you’re not prepared. […]. And so I security protection. Their vulnerability to financial shocks say, my God, if I died today it would be good if I had good is probably the highest across society, yet traditional insurance so that my children could continue in school and insurance solutions remain unaffordable and distant to at least eat. This is my biggest worry.”92 their reality. Insurance products to address her immediate She is managing the household on her own. needs. Products need to be simple, with few exclusions, Within the lower income bracket, particularly in rural normally corresponding to pure protection products. areas, more women may become heads of household Finance Trust Bank in Uganda, together with Women’s due to labor-related migration of their spouses. This is World Banking offers coverage that includes inpatient 42 hospital admission along with loan insurance. Women 2. Constraints Faced in Accessing Insurance are able to file claims at the time of admission which immediately provides them with the cash they need for Cost continues to be a constraint against the hospital stay and partially compensates for their lost buying insurance, especially for women who tend income of the day.93 By enabling women to file claims to have fewer financial resources and less financial right away, providing fast and efficient claims services, autonomy than men. According to the ILO, women make and a cash payout, insurers are providing direct, tangible up a majority of the world’s poor, earn less income, and value. are more often affected by long-term unemployment.99 Traditional insurance products are often perceived as She may not have high-tech devices, but she is too complex by the target client, with covers that are willing to learn about insurance through basic not always relevant to the client’s needs, with too many mobile channels, especially as more commercial exclusions, and long lists of terms and conditions. products and services are reaching rural areas through mobile technology. While a gender gap exists in access Complex processes to apply for coverage and to digital services (disparity in Internet access between obtain claims. Part of the distrust that low-income men and women is 25 percent,94 and in mobile access is women have toward insurance companies also comes 14 percent95), many mobile companies and development from processes that are not adapted to their reality. agencies are focused on growing this under-addressed Often, there are too many documents they need to market.96 It is especially important to reach rural women, provide that are not always relevant, excessive waiting who face greater restrictions on movement compared to time to receive the payment in case of claims, and men.97 As insurers develop education and sales solutions, frequently unsuitable payment methods. Low-income they should further leverage mobile channels to reach this women are often less literate than low-income men, and segment. have less access to formal financial accounts to receive payments. There is a persistent gender gap of 7 percent She responds well to information from the globally between men and women who have bank community, friends or family. Women in this accounts.100 segment are more likely to receive financial advice from community members and family, rather than through Limited customer data exists. There is a substantial formal insurance channels.98 Insurers can leverage these lack of data available on customers at the base of the social networks to realize lower acquisition costs, and pyramid; this is especially true for women, who are often further increase awareness of insurance and its benefits. marginalized. The lack of data on these women’s needs and on their risk profile make it difficult for insurers to develop products for this segment. 43 SPOTLIGHT ON MICROINSURANCE Microinsurance is targeted at low-income customers show that women clients tend to be a better credit risk.104 with income of $2 to $8 per day, and provides annual Women tend to use the microinsurance payout to replace coverage that ranges in cost from $5 to 6 per person.101 whatever was lost, whereas men are more likely to spend The product provides protection to customers who it on a treat or one-off purchase.105 cannot afford conventional insurance. The microinsurance opportunity alone is estimated to be three to four billion There remain a number of challenges to microinsurance. policies generating between $30 and 50 billion in annual First, a lack of personal data on the poor inhibits risk- revenue globally.102 adjusted pricing and increases the cost of underwriting. Second, low financial literacy among the poor requires Microinsurance has been particularly beneficial for low- additional lead time and investment. Third, insurers still income women. Gender-specific risks such as maternal struggle to adapt their operating models to the reality health and disruption to income earning activities due and needs of the low-income segment. These challenges to caretaking mean women need more protection. are especially difficult for women who often have specific Low-income women are also more likely to bear the insurance needs (such as women’s health) and are burden of providing for their families; therefore, by generally less financially literate. Finally, due to the low providing protection to the main household contributor, premiums, microinsurance offers limited coverage that microinsurance prevents financial shocks to the family. does not address women’s changing needs as they move Microinsurance is most commonly tied to a microfinance up income brackets. A lack of transition products limits product (e.g., “credit life”)103 — and microfinance studies women’s ability to graduate to conventional insurance. Case Study 4: Education is a Requisite to Usage of Microinsurance Microinsurance providers must educate policy use the Taysir al Amana products to pay for holders about the benefits of their insurance financial losses. When Taysir al Amana was products. This was the experience of AlAmana explained in simplified terms and with strong Microfinance in Morocco. AlAmana’s Taysir visuals, clients, particularly women, were more al Amana product (L’Assistance) is a micro- eager to purchase the product as they saw its insurance scheme automatically attached value in addressing their immediate needs.107 to the client’s loans that pay out during AlAmana is working with Women’s World events of stress (for example, for childbirth, Banking to develop a more targeted marketing hospitalization, or diagnosis of critical illness). strategy that simplifies the language, clearly Despite having 240,000 clients enrolled within presents the claims process and trains the sales a year of introducing the policy, 41 percent staff in explaining the benefits. of whom were women, only a small number of claims were filed (20 percent claims ratio, Given the lower levels of literacy among low- versus the targeted 50 percent that indicate income women, it will good value from the product).106 be even more important for insurers to develop Due to the complex language used to explain clear, pictorial language the product and the client’s low financial to address and attract literacy, they did not understand how to women clients. 44 45 Women entrepreneurs are of particular interest, as they own about one-third of the businesses globally. By 2017, it is predicted that they will grow their business by at least six employees, making this segment a strong growth opportunity for insurers 46 8. Enabling Women Entrepreneurs A mutually beneficial relationship exists between insurers and entrepreneurs. Insurance reduces entrepreneurs’ exposure to shocks, gives them more financial independence, and enables them to embark on higher-risk and higher-return activities.108 For insurers, entrepreneurs represent a growing sub-segment of commercial lines with needs for asset, loan, and business protection. Enterprises also require insurance for their employees, and can serve as a conduit to a larger and potentially high-growth customer base for insurers. By enabling risk-sharing, insurers become a key path to business innovation and progress and an important driver for economic growth. Women entrepreneurs are of particular interest, as they Women-owned enterprises tend to develop more own about one-third of businesses globally.109 By 2017, it innovative products. A 2012 study by the Global is predicted that they will grow their business by at least Entrepreneur Monitor found that more women-owned six employees,110 making this segment a strong growth enterprises had innovative products and services than opportunity for insurers. men-owned enterprises in the Middle East and North Africa (MENA), Asia, Europe, and the United States.114 Innovation is important to business growth, especially in increasingly competitive markets. 8.1 TAKING THE Insurance allows women entrepreneurs to free up capital ENTREPRENEURIAL LEAP and reinvest in growth. According to the ILO, “traditional crisis management strategies such as using profits to pay A — A Growing Segment for emergencies is one of the largest barriers to growth for women entrepreneurs.” 115 Women entrepreneurs are Growth in the number of women entrepreneurs can also more likely to use savings to protect against business be observed around the world — for example, women- interruption; however, owned firms in the United States are consistently allocating income to savings growing at over twice the rate of other firms (23 means diverting it away from percent vs. 9 percent), while growth in the number of “When men and more productive uses such women entrepreneurs in East Asia is 3.6 percent faster women have the as technology investments or than growth in the number of male entrepreneurs.111 It is same revenue hiring new employees.116 estimated that there are about eight to 10 million small earnings, women and medium enterprises (SMEs) in emerging markets are more proactive with at least one women owner, making substantial in paying their economic impact through revenue generation and job premiums with less creation.112 Not only are they employing more people, delay.” but they are also employing more women. A study from the World Bank found that female-led firms tend — Representative, to have a larger share of female workers compared to Asociación Mexicana firms led by men.113 de Instituciones de Seguros (AMIS), Mexico City, Mexico 47 E — SEGMENT 5: WOMEN ENTREPRENEURS Women are looking for dedicated insurance solutions that cover personal and business demands CHARACTERISTICS CONSTRAINTS SOLUTIONS • Owns her own business: may • Credit protection gap • Partner with banks to be home-based and/or may explore continuous have employees • Lack of products that will underwriting help manage business and • May be looking to grow and personal life, and protect • Develop products for credit expand her business against business interruption protection to help bridge the finance gap • May have children, spouse or • Lack of frequent touch other dependents points, and advice on risk • Develop bundled products: management Bundle professional and • Balances personal, family and personal insurance, Life and business demand • Lack of awareness about P&C insurance life insurance products to protect income stream • Leverage Women’s Entrepreneurship Associations • Provide more personalized touch points and ease of access to agents In addition, some women entrepreneurs may make low- B — More Valuable Clients risk business decisions to reduce the potential downside, but these decisions also reduce the growth potential Experiences from microfinance organizations and of their businesses.117 Insurance provides women with a commercial banks have shown that when women safety net that allows them to anticipate risk and redirect are direct beneficiaries of credit, the organizations their profits toward the growth and sustainability of their experience higher repayment rates.118 Similarly, interviews enterprises. In turn, as their businesses grow, their needs with insurance associations indicate that women for insurance protection will grow as well. entrepreneurs are more likely than men to pay off their long-term obligations. Women entrepreneurs hence represent a great customer base for insurers due to more regular premium payment habits. 48 C — Economic Investment into Society A — Credit Protection: Bridging the Finance Gap Growth of women entrepreneurship ventures is also an investment in society. By helping women entrepreneurs Women entrepreneurs want help with accessing mitigate risk in their business and personal lives, insurers credit. One of the greatest constraints faced by women are enabling and empowering women entrepreneurs entrepreneurs is a lack of access to finance due to a lack to take greater risk and be more innovative with their of collateral for loans.122 An IFC study estimated the credit ventures. Boosting women’s economic opportunity and gap for women-owned SMEs in the formal sector to entrepreneurship can improve per capita income growth be approximately $287 billion, and up to $1 trillion when and reduce poverty.119 Studies have shown that if women’s informal SMEs are added.123 More formal women-owned employment rates were equal to those of men in 15 major SMEs than male-owned SMEs cited access to finance as emerging economies120 income per capita would rise by a constraint against starting their business.124 Women more than 20 percent by 2030.121 entrepreneurs, particularly in Brazil, have expressed the need for an insurance product to help them with obtaining credit. Ana Fontes, the head of the women’s entrepreneurship association in Sao Paulo, Brazil, stated, 8.2 WHAT WOMEN “I see a lot of women entrepreneurs struggling with ENTREPRENEURS NEED obtaining credit without putting up their personal assets as collateral. Some type of insurance that can guarantee While both men and women entrepreneurs need to women’s initial access to credit and help them build a protect similar underlying business assets (such as credit history would be very beneficial in helping women property and motor vehicles), women entrepreneurs also start and grow their businesses.” Currently, the market have specific needs. for this type of insurance for unsecured loans without collateral is limited. 49 B — Protection Against Business which need their constant involvement.126 All of these Interruption factors mean that any shock to a woman entrepreneur’s personal life — due to caretaking obligations or health Women entrepreneurs’ business and personal lives are issues — will disrupt her business and reduce its income- tightly linked — events in their personal lives such as generating potential. Given that women entrepreneurs pregnancy, childbirth, and maternity also face high demands on their time for leave can have a big impact on their household work and childcare, they face a higher income-generating activities. Focus “I want to know risk of business interruption, and have a greater group discussions with entrepreneurs someone is there need for income protection insurance against in Latin America found that women are when I need them personal shocks.127 Interviews with entrepreneurs more likely than men to operate their to answer my in Nigeria found that women rely on informal businesses from home. In addition, 125 methods like family and friends, and savings to questions [on the findings from the Global cover costs when they are unable to work. This policies] and to help Entrepreneurship Monitor show that may be useful in the short-term, but is not a me manage my women are more likely than men to sustainable source of income protection, have service-oriented businesses business risk.” especially as their businesses grow. — Theresa, Entrepreneur, Lagos, Nigeria As women entrepreneurs face high demands on their time due to household and childcare responsibilities, they face a higher risk of business interruption and have a greater need for income protection against personal shocks 50 C — More Frequent Touch Points 8.3 SOLUTIONS FOR WOMEN ENTREPRENEURS Survey results show that women entrepreneurs want more frequent touch points with insurance distribution channels (such as direct sales, agents, brokers, and banks) A — Hand in Hand with Banks compared to other segments of women. 58 percent of women entrepreneurs surveyed stated that they One option to help women who do not have collateral wanted “regular” or “frequent” interactions with their or credit history to obtain a start-up loan is to explore distribution channels, compared to 17 percent of women continuous underwriting with banks. In markets where in other segments. Women entrepreneurs want more there are no legal restrictions on such partnerships, than just products in their interactions with distribution insurers can partner with banks to protect a certain channels — they want advice on risk management and a level of credit for women entrepreneurs to start their comprehensive understanding of the policy coverage and business by leveraging the future earning potential of claim terms. the enterprise as collateral. As the business grows and the revenue potential is realized, the amount of credit protected by the insurance policy can increase. This helps D — Mind the Life Insurance Gap new business owners access the initial capital they need to start their business, and uses their future earnings While 57 percent of insurers interviewed believe that as collateral to build their asset base and increase their life insurance is an important product for women credit limit. entrepreneurs, only 31 percent of women entrepreneurs surveyed held protection- or savings-oriented life An example of this type of product is offered by the insurance. Women entrepreneurs view property and Kashf Foundation in Pakistan. Its Ibtida-e-Karobar Karza- casualty insurance as a higher priority to protect their Productive Loan offers credit life insurance protection for physical assets, but may not be educated as to the use microcredit loans to new women entrepreneurs. Kashf of life insurance to protect their income. Protection- works with the client to conduct pre-feasibility studies oriented life insurance is especially important for women to assess the client’s investment needs and earning entrepreneurs as their income is primarily potential, before offering an appropriate used to care for their households.128 If they are level of insurance to protect the loan. This no longer able to earn an income stream, their “I was lucky product invests in women by giving them household finances can suffer significantly. when I took out access to credit to start a business, while Women entrepreneurs may also rely on their partnership life also building Kashf’s women customer spouses to contribute financially to their insurance — this base for both credit and insurance enterprise. Interviews in Brazil indicated products. that 40 percent of women entrepreneurs enabled me to have their spouse as a business partner. Life keep my part of insurance offers a reliable and often tax- the business when B — Women’s Lifecycle: advantaged way for women entrepreneurs my partnership Sometimes a Bumpier Ride to to independently accumulate savings apart dissolved. For Protect from their spouses, or to protect the income- women who do Given the potential impact of women’s earning potential of their spouses. not have this personal lives on their income generating insurance, they activities, insurers can offer business face a lot of risk in interruption protection against shocks getting their assets from life events, such as illness and after their business childbirth. dissolves.” — Ana Fontes, Head of Women’s Entrepreneurship Association, Sao Paulo, Brazil 51 Case Study 5: Comprehensive Insurance and Credit Solutions Provide Flexibility and Convenience One constraint faced by many women women entrepreneurs that allow deferral of entrepreneurs is the impact that their loan payments by up to 12 months in the case personal lives may have on their businesses. of maternity leave or serious illness within Intesa SanPaolo, an Italian bancassurer, has the family. By providing both targeted credit recognized the need to provide business and insurance for women entrepreneurs, interruption and personal protection tailored Intesa SanPaolo enables convenient access to for women entrepreneurs, and created the multiple financial services and helps women “Business Gemma” insurance policy and loan. entrepreneurs build their businesses along with their personal lives.130 In addition to providing standard business interruption protection, the insurance policy The Business Gemma products and services also provides protection for a diverse set of were successful in opening a new market for women-specific personal and health needs Intesa SanPaolo. With approximately 1.7 million including maternity, female-specific check- women in Italy engaged in entrepreneurial ups, legal protection (such as refunding legal activities,131 this is an important market that expenses related to divorce) and assistance cannot be ignored. At the end of 2014, 1,400 at difficult times such as disability in the case policies were in place.132 The Business Gemma of widowhood.129 All of these personal issues product has received the AIFIN-Cerchio d’Oro have the potential to impact the income- award for financial innovation in 2011 and the earning ability of the female policy holder, MF Innovation Award in 2012.133 and hence the revenue of her enterprise. Intesa SanPaolo also offers credit loans for 52 C — Personalized Touch Points E — Leverage Women Networks Given women entrepreneurs’ request for more advice and Providing insurance through women’s entrepreneurship touch points with their distribution channels, insurers, associations in the local markets enables insurers to brokers, agents, and bancassurers need to work together access an entire network of women clients, similar to understand what women entrepreneurs want as to affinity insurance schemes. Insurers will be able to their touch points and personalize their end-to-end provide the entrepreneurs with group rates on life and experience. Examples include assigning one dedicated health products, which are generally lower than individual individual to build relationships with the client, offering rates due to spreading of the risk pool. In addition, business and personal risk management guidance, a partnership with an association allows insurers to and proactively setting up regular meetings. It is also leverage the association’s network and resources to important for the distribution channel to follow the educate its members about risk management. woman entrepreneur as her business and insurance needs grow, to ensure her insurance protection is growing as F — Protect as Insurers, Finance as well. Bancassurance is a particularly important channel, Investors given the number of business transactions done through banks. Insurers can further leverage the touch points To support natural growth in women-owned enterprises, banks have with women entrepreneurs — such as and this growing female customer base, insurers providing credit or making savings deposits — to offer should seek to leverage their substantial institutional insurance products tied to the transaction, including investments. As one of the most important groups of credit insurance or pensions for savings. institutional investors in the world (insurers are the largest institutional investors in Europe134) insurers could D — Address Life Insurance Gap lead the way in directing a portion of their investments into funds focused on women entrepreneurs. For a) Bundle life and property/casualty: One way example, Goldman Sachs together with IFC launched to address the protection gap in women’s purchase of a global finance facility dedicated to women-owned life insurance is through product bundles. By combining SMEs.135 Based on conversations with investment advisors, life insurance with property and casualty, insurers can insurance companies are a prime source of capital comprehensively address women entrepreneurs’ needs. for impact investing opportunities that provide both financial and social return to the investor; and investing in b) Explore partnership life insurance: Women women-owned SMEs represents a particularly compelling entrepreneurs, who rely on their spouse to financially investment opportunity. participate in their business, need protection in case their spouse is no longer able to contribute to the enterprise. One option to protect business continuity is partnership life insurance — this covers the lives of each partner independently; in case of death, the payout goes to the surviving partner to invest back in the business. This is similar to a basic life policy, but has limitations on the payout so it can only be directed back into the business to maintain its financial health. 53 Insurance services today are generally tailored to a male or a gender-neutral audience without a clear understanding of the unique needs of women 54 9. So What Now? A comprehensive strategy involving market research, product and service development, and distribution is needed for insurers to unlock the potential of the women’s market. There is no “silver bullet” solution to meet the varying product, services, and distribution needs of women across segments and geographies; rather, insurers need to tailor these recommendations to the characteristics of their individual markets. The recommendations are grouped into three categories. Step 1: Step 2: Step 3: Build intelligence on Develop targeted value Improve distribution women’s insurance needs propositions for women and proximity to women segments clients • Gather gender-disaggregated data across the insurance value • Conduct more in-depth focus • Use a digital approach as an chain to further analyze and build groups for each segment to further opportunity to increase proximity the strategy for the women’s understand needs and cultural with women clients and sell market opportunity; nuances; insurance through mobile and online channels; • Monitor gender-disaggregated • Develop targeted products for data across the insurance value women client segments based • Build on women’s specific chain to track the performance on segment-specific needs (e.g. networking and advocacy habits of, and refine the strategy for the conditional payouts or product to increase proximity to women women’s market; bundles); clients and increase their trust in insurance companies; • Analyze existing data and collect • Provide wrap-around services to new information on women’s enhance product value by helping • Provide clear, relevant coverage demographics, socioeconomic women address everyday needs. information and targeted risk trends, as well as needs and management advice to reduce behaviors to 1) segment the the time and cost for women to women’s market 2) design research products; targeted products and services and 3) implement dedicated marketing • Engage and empower more and distribution strategies. women in the insurance salesforce and within other departments of insurance companies i.e. actuaries, product designers, marketers, and mid-management, to represent the needs of and create affinities with women clients; • Provide gender sensitive training to the salesforce to better engage women clients; • Engage in partnerships to expand women’s access to and use of insurance and enhance product and service value. 55 9.1 BUILD INTELLIGENCE ON 9.2 NOT JUST ANY PRODUCT: WOMEN’S INSURANCE NEEDS THE RIGHT ONE There is a need to develop targeted value propositions for A — Gather Gender Disaggregated Data the women segments. Insurance products and services and Monitor Women’s Portfolio today are generally tailored to a male or gender-neutral audience without a clear understanding of the unique While gender-disaggregated data is not always needs of the women’s segment, and the sub-segments it available,136 insurers need, where possible, to monitor the is composed of. Insurers need to use the client insights needs and behaviors of women clients in their portfolio. they have gathered to develop unique products and Tracking gender-disaggregated data on renewal rates, services for targeted women client segments. premium spend, turnover ratio, claims ratio, client satisfaction, and acquisition cost will enable insurers to better understand the value of women as clients. This A — Develop Targeted Products for data can then be used to further refine the analysis of Women Client Segments the women’s insurance market opportunity and build the strategy to reach the market. Products must be tailored to the needs of each client segment, taking into account women’s time constraints and multifaceted roles within the home and society. B — Analyze Existing Data and Collect New Data on Women’s Demographics, Below are few examples of segment-specific targeted Needs and Behaviors products To develop a truly customer-centric view, insurers need to analyze data to segment their women’s customer Example 1: Across all Segments base and design targeted products, marketing, and distribution strategies without relying on assumptions. Need: Peace of mind Women’s needs differ from each other across different Solution: Conditional payment to beneficiaries income brackets, family structure (for example, whether or not they have a dependent), lifecycle events (such While both men and women seek peace of mind from as marriage), and geography (whether urban or rural), insurance products, certain markets have societal and it is important that these customs that favor men in inheritance rights. Women in differences are captured. Data these markets want to use insurance to guarantee their points that can be analyzed “Women are benefit payouts are used productively — for example, include income level, number to fund their children’s education — rather than being of dependents, preferred keen to insure squandered by a relative. One option insurers can offer channel and frequency of themselves as they is to provide regular payouts of the policy, as opposed interaction, the types of are increasingly to a lump sum, conditional upon the beneficiary’s products women want from looking for stronger lifecycle events (for instance, a payout might be linked to insurers, and the barriers protection; but continued school attendance). In addition, insurers can women face in purchasing they also want the offer the woman policyholder the option to appoint an insurance. Where there are service that comes estate trustee to carry out and manage the payout if the data gaps, clearly defined with it. Basically beneficiary is not capable of doing so. processes such as interviews, [they want] the focus group discussions, and This type of conditional payment is common in Brazil, full package market studies are needed to China, and India as part of education life insurance policies. and insurance gather new data. companies should capitalize on that.” — CEO, AXA, Sao Paulo, Brazil 56 Example 2: Segment 2 — Working Mothers Example 4: Segment 4 — Low-Income (MIDDLE AND HIGH INCOME) Customers Need: Family protection for diverse set of dependents Need: To address gap between micro and conventional insurance Solution: Family bundles Solution: Bridge products Women value insurance products that protect their entire family. This requires insurers to consider clients as a As women continue to improve their economic standing, family unit, and the woman client as a conduit for family insurers could invest in developing bridge products that coverage. A bundled “family care” package that covers follow women through increases in their income and multiple family members and provides an option to add changes in lifecycle events. Beginning as a microinsurance on more family members will be convenient and useful. product, it can be distributed through the mobile carrier These product bundles will need to provide different care and will follow the policyholder as their income rises for both the elderly and children; policies for the elderly to bring them to the coverage level of conventional will include health monitoring support, while children’s insurance products. This product can be used by both policies will include regular health screening. While men and women, but will be particularly valuable for bundling is often offered as part of employee benefit women as they are offered riders based on their lifecycle plans, it is not commonly seen in retail products within events and advice on managing their risks. the 10 focus markets. By offering insurance through a mobile channel, telecommunications companies can build loyalty by Example 3: Segment 3 — Retirees increasing the switch cost, while insurers are able to reach a larger population base. Traditional microinsurance Need: Assistance with managing healthcare terminates the relationship once the coverage period is Solution: Targeted accident coverage for common over, but by distributing and offering products through women’s health issues the mobile channel, insurers will be able to follow an individual client through her rise in income. When the As stated above, retired women are more concerned policyholder’s income rises, she will likely upgrade her about managing their health. One option is to offer phone, signaling readiness for a more sophisticated short-term accident coverage for common health issues insurance product. Insurers can pre-install an app on the faced by senior women. For example, a World Health upgraded phone to offer incremental riders to extend the Organization (WHO) report identified that older women coverage until it reaches the conventional insurance price are more prone to falls and increased injury severity.137 In point. Insurers can also offer add-ons or tailored products the case of a broken bone, women can use this product that follow a woman’s cycle of life events. Finally, to cover hospital and other expenses related to insurers can also use the mobile application to send the treatment and reduce their out-of-pocket spending. policyholder information related to managing the specific Offering the option for annual renewal allows flexibility risks faced by women such as maternal care. for women clients to enroll when their budget allows it. While very relevant to women clients, similar types of This type of product will be beneficial in markets where short-term health coverage products can be designed microinsurance is common — for example, in India, for men clients to cover the type of health issues they Indonesia, Mexico, and Nigeria. However, given market- are more likely to face. specific restrictions on partnerships between mobile and insurance, this approach may not yet be possible in all This type of product is already found in Brazil, and will be markets. beneficial across all focus markets. 57 B — More Than a Top-Up, a Wrap-Around Service that Enhances Product Value Women, particularly mothers and retiree segments, are looking for trusted services to help them balance commitments and enhance their mobility. This recommendation is especially relevant in Brazil, Colombia, Mexico, and Thailand, where the demand for wrap- around services is high. Wrap-around services are common in some Latin American markets. For example, in Colombia, some motor insurers offer services to drive the policyholder home after dark or after a social event. This type of service is particularly valuable for women who are not comfortable driving at night. The insurance provides the policyholder with a clear value beyond accident protection, while also preventing drunk driving and reducing the risk of claims. Case Study 6: Brazilian Insurer Porto Seguro’s Wrap-Around Services Address Women’s Daily Needs Porto Seguro has differentiated its motor from the company and I will not let anyone into product for women by providing outstanding the house without the password.” Premiums wrap-around services. The Auto Mulher provides on the Auto Mulher product are 20 to 30 percent female drivers with exclusive services and higher than the market average; however benefits. Some services, such as providing a women are willing to pay for the additional help desk for computer issues or discounts services and view them as “well worth the at personal wellness establishments, are not price.” related to the underlying car being insured but are valued by women as solutions for their Porto Seguro is one example of an insurer that needs around the home.138 has differentiated the company by identifying and meeting women’s needs outside of direct Women can trust Porto Seguro to validate the insurance coverage to grow sales and customer service providers associated with the insurance loyalty. While many other insurers product. As one woman client stated, “I only offer “female-specific” motor trust services provided by Porto Seguro, as I products (e.g. 1st for Women, know they have checked everyone who they Diamond Insurance), few offer send out. I get a password to make sure that the extensive set of services that the person who is coming is actually coming Porto Seguro does. 58 9.3 PROXIMITY, UBIQUITY, The digital channel can also be used to deliver after-sales and wrap-around services, particularly for the working SIMPLICITY: IMPROVING mother segment. For example, online claims tracking DISTRIBUTION FOR WOMEN will enable busy women to anticipate the timeline and CLIENTS amount of their payout. These women also value mobile applications that help them manage their finances. A Insurers must develop different distribution strategies study in Brazil found that applications that help with adapted to the various sub-segments of the women’s financial planning and productivity are popular among market. Leveraging technology, the women’s salesforce, smartphone owners.144 and innovative partnerships are all options for insurers to reach their target women segment. It is important that To successfully use digital channels for sales, insurers need the distribution recommendations are tailored to the to address women’s concerns about transaction security. needs of each market and segment. A study by Kaspersky Lab found that women feel more vulnerable than men when making an online payment A — Digital Savviness: More Than Just (51 percent versus 46 percent), and are more worried Nice to Have about the risk of online security issues affecting their bank accounts (64 percent versus 59 percent).145 Investments in Leverage digital growth as an opportunity to increase encryption technology and pursuing online threats need proximity with women clients and sell insurance through to be made and communicated. Insurers also need to mobile and online channels. Online research for insurance demonstrate commitment to security through awareness products is growing in popularity, particularly in Latin campaigns. America and Asia. An Accenture survey found that in Brazil and Colombia, 65 percent of research activities B — Leverage Women-Specific are conducted online,139 while a BCG survey in India Networking and Advocacy Habits: It’s found that the Internet was listed as the second highest Always Been About Word of Mouth contributor to selecting an insurance brand.140 A study by ComScore found that globally more women than For the salaried women and working mother segments, men go online to research financial services products.141 social media platforms, and discussion forums are a For the salaried women and working mother segments, growing opportunity for insurers to educate women online and mobile provide convenient channels to about insurance products and market such products, research insurance products as these women value the especially as these platforms allow for the multiplier convenience offered by digital channels. effect. Women spend a higher percentage of their time on social networking (16.3 percent vs. 11.7 percent) than The digital channel can be used to sell insurance, subject men.146 In the insurance industry, an Accenture study to market-specific legal restrictions on digital distribution. shows that in Brazil, women are more likely than men to For example, lower-income women customers in rural use social media to research claims processes.147 Market geographies face greater mobility restrictions than men,142 interviews show that women will use social media and therefore mobile channels may be the best distribution platforms to share products and services they like with channel to reach them. An example of an innovative others in their social media network, enhancing their role mobile and insurance partnership is Tigo and Vanguard as advocates. In addition, women are also more likely Life Assurance, which provides microinsurance for free to to trust the reviews posted by their network, enabling Tigo subscribers, and has reached over one million people insurers to build trust within a larger base of women clients. in Ghana and Tanzania. While not specific to women, this type of partnership underscores the future of mobile and insurance distribution for the lower income bracket.143 59 Women spend a higher percentage of time on social networks. They will increasingly use them as a platform to share products and services with others, making them great advocates. Insurance companies should build on this for greater trust and reach 60 C — Be Clear and to The Point In markets where women face barriers in interacting with men clients, one suggestion is for insurers to Insurers need to focus on providing accurate and relevant leverage the women’s salesforce to sell solely to women information and advice at the point of sale. As women clients. Initiatives such as the all-women branch set are more likely than men to read insurance policies, they up by Bajaj Allianz in Pune, India, provides a “conducive are more likely to be frustrated with complex technical environment that will not only provide them financial information. Insurance companies need to highlight independence but will also use the talent pool of women the most relevant information — such as coverage, professionals.”149 This enables women to interact with exemptions, and the claims timeline — so the reader can colleagues and clients without breaking social or cultural understand it immediately. Where possible, language norms. needs to be simplified without downplaying technical complexities. There is also an opportunity for insurers In addition, women find that although the insurance to use technology to provide clear information — for industry provides some flexibility, the late hours required example, by providing a video guide to the claims process. for serving clients can conflict with their personal and family duties, which require them to be home in the In addition, women value risk management advice evening. more than men. Providing advice as well as preventive mechanisms to women on how to better manage their Address safety concerns: Physical safety is a household risk is another tangible service that insurers concern for women, particularly in public places. Because can provide to build trust with the client. Advice on how the agent role requires face-to-face client meetings, to reduce the risk of defaulting on a loan, for example, will women who lack transportation of their own must travel be valuable, as it will reduce the chance that the client via public transport and can face sexual harassment. This will have to make a claim. is particularly common in markets such as India and can be a significant barrier to women being insurance agents. In addition, night-time events, such as dinners with D — Engage and Empower More Women clients, can also be a safety concern, especially if a woman in the Insurance Salesforce is traveling alone. Women represent a high performing salesforce that One way of addressing these safety concerns is for can be leveraged to build trust and increase insurance insurers and brokers to provide a ride share program for uptake among both women and men clients across all women. For women agents who live in remote areas segments. To fully recognize the potential of women or need to travel at night, a ride share program will be in the salesforce, insurers need to address the social, invaluable to ensure their safety. Such programs exist in professional, and safety concerns they may face. India; for example, Bajaj Allianz offers pick-up and drop- off assistance to women agents.150 Recognize sociocultural constraints: Insurers need to recognize that local cultural norms determine with whom women can interact with and the types of economic activities they can participate in. The face-to- face nature of sales work can pose problems in many cultures, since women agents have to interact with potential and existing clients of the opposite gender.148 61 Address the low professional reputation Develop dedicated sales leadership programs of agent/broker positions: In certain markets for women: While women are a high-performing such as China, and Mexico, being an insurance agent is salesforce, they may not always be represented in sales traditionally not considered to be a desirable position. management positions. For example, while 60 percent Because the entry barriers to being an insurance agent of ICBC-AXA’s top agents are women, women make are quite low, the quality of agents is not perceived to up only 40 percent of sales management positions. be high. In addition, the commission structure, while Interviews with brokers in Mexico and Nigeria found that beneficial to high performers, is not a steady income women represent under 30 percent of sales management stream and is susceptible to volatility in a woman’s positions. A lack of women in leadership could translate personal life. Corruption and fraud within the insurance into a lack of awareness of the needs of women clients, industry also negatively impact employer branding. Hua, both in the company culture and in communications to a health professional in Beijing, China, stated, “You only the salesforce. become an agent if you are not able to find any other job,” while Teresa, a broker in Mexico City, Mexico, stated, Women at lower levels also lack role models. Insurers “Women start selling insurance to participate in the need to dedicate formal mentorship and sponsorship workforce; however, they do not have proper training.” programs to increase representation of women in sales leadership. For example, Nippon Life, an insurance Multinational insurers and brokerages are working to company in Japan, has multiple programs to further train improve the professional reputation of insurance agents its female talent. These include seminars for women by creating targeted campaigns dedicated to recruiting on returning to the workforce after prolonged leave educated women, developing robust education programs (usually due to family commitments) as well as collecting for agents, and providing assistance with balancing work- and implementing the ideas of female employees and/ life priorities. or salesforce for women-specific products.151 Such programs not only grow leadership skills, but also Help women build an initial client base: Most enable the salesforce to have a visible impact on clients. agents build their customer base from scratch, but While leadership programs are commonly found in interview results with women agents identified that developed markets, they have not yet been implemented it is particularly difficult for new women agents as consistently across emerging markets. the insurance industry is still considered to be male- dominated. Women agents may not “fit in” to the male oriented relationship building activities that can initiate a sales agent’s career. For example, male colleagues often gather after hours for social activities, which may be difficult for a woman due to her household commitments. “Uniform training programs and updated Insurers and agencies can help lower startup costs by technology give women agents confidence that facilitating handover of clients between women agents. [the brokers and insurance companies] want us As one agent retires, insurers or brokers can act as an to do well and are invested in our careers.” intermediary to help sell his or her book of business to another agent. Insurers can also provide start-up loans — Bai, Agent, Beijing. China to purchase a new book of business. Such initiatives are common in developed markets and will help insurers keep the existing clients within their own portfolio, while helping new women agents build an initial customer base. This will be especially valuable for new women agents who may face more barriers than their male colleagues in establishing an initial network 62 E — Adapt to Your Audience: Provide this type of training will help improve the salesforce’s Gender-Sensitive Training effectiveness in understanding and meeting the needs of women, and help build women’s confidence and trust in Currently, no insurer, agency or broker interviewed across making financial decisions. the focus markets provided gender-sensitive training to their salesforce, which may explain the disconnect F — Stronger, Together between women clients and their insurers. By partnering with governments, NGOs, other service In some developed markets, the financial services providers, and complementary industries, insurers can salesforce is trained to recognize and respond to women educate and reach women who may be left out of the clients at the point of sale. This is particularly important traditional distribution channels. Distribution partnerships for women entrepreneurs and retiree segments, as they are particularly important for women in the lower are more likely to seek out in-person advice. For example, income bracket — who face physical and socio-cultural Fidelity Investments in the United States has trained its barriers to insurance access — or women new to the salesforce to respond differently to women and men formal workforce who may not be as confident in making clients. It found that women wanted to understand what financial decisions. the products mean for them, as opposed to having the condensed version that men commonly want.152 Providing The lack of gender-sensitive training within the insurance salesforce explains the disconnect between women and their insurers 63 Develop partnerships to increase awareness Currently, few programs in emerging markets focus on and trust among women clients: Insurers and insurance education, and those that exist usually do not governments can work together to improve insurance focus on the women’s market. By providing awareness education for and distribution to women. Depending programs through a trusted community-focused group on the relationship between the government and — where women often play a central role — insurers the insurance industry in each market, partnership can also establish themselves as supportive community opportunities vary. The first step is for insurers and the advocates. Such programs are found in the banking government to join forces in recognizing and identifying sector; for example, Citibank partnered with the Indian constraints faced by women clients and the shared School of Microfinance for Women to provide financial interest to providing joint solutions to critical issues such literacy education for women in low income brackets.153 as aging population and urbanization, before discussing potential solutions. Potential collaboration opportunities Partnerships with other service providers will bring include developing targeted education curricula on risk credibility to insurers’ messaging and help further increase mitigation for women. trust among women clients. Insurers can also leverage professions of influence, such as medical professionals or Partnerships with schools and reputable NGOs can teachers, as distribution channels. help insurers increase awareness of insurance among women, particularly those in the lower-income segment. Case Study 7: Leverage Medical Professionals and Savings Clubs to Increase Awareness Among Women in Indonesia Multiple insurers in Indonesia have developed higher sales than traditional agent channels. a novel approach to educating women clients Women trust medical authority figures such about insurance by combining medical as doctors, nurses and midwives and are more professionals and the “arisan” club — a women’s likely to listen to their advice regarding health savings and social club — as distribution channels. risks. Presenting insurance in person and in the Working with doctors, midwives and nurses, context of healthcare cost is more concrete for insurers organize events with arisan clubs women than a list of premiums and benefits. where medical professionals help women understand the health risks they face. Following Insurers also benefit from the network effect the presentation of health risks, the insurers of women. An arisan club can have up to 20 show participants what products are available members, with women often belonging to to help them manage these risks. multiple clubs. Insurers benefit from accessing a large base of clients at one point and Although this approach is relatively new, leveraging women’s wide sphere of influence as interviews with insurers in the local market women share their experience with other have revealed that this channel generates club members. 64 Develop partnerships to increase access to women clients: Partnerships with companies in complementary industries that service or employ a large women population can open up a new commercial women customer base for insurers. For example, partnerships with companies with a large women’s salesforce, such as cosmetic companies, can provide insurers with access to a large base of commercial clients. Case Study 8: Innovative Partnership to Reach Women Sales Representatives in Mexico Zurich Seguros in Mexico has partnered with cancer coverage (breast cancer affects one Avon, a beauty and cosmetics company, in eight women). By accessing insurance, through an innovative incentive plan to provide the representatives may be able to access health, medical and accident benefits to Avon’s better quality care and ensure the safety of salesforce of primarily women representatives. their family. Representatives who reach a certain tier of 2. Avon: Provides a differentiated benefit sales are entitled to opt-in to a corresponding to attract and retain its agents in an tier of insurance coverage at no cost to them. increasingly competitive talent market. Avon has also provided a very valuable Four tiers of coverage with increasing incentive for its representatives to grow protection value are available: their sales. Tier 1: Individual Accident Death Coverage 3. Zurich Seguros: Increase female insurance Tier 2: Individual and Family Accident Death coverage by further penetrating the Coverage Avon representative sales channels. In Tier 3: Extended Individual and Family addition, by extending benefits to the Accident Death Coverage representatives’ immediate families, Zurich has also grown its customer base. Avon’s Tier 4: Individual Breast Cancer plus Individual representatives also act as advocates and Family Accident Death Coverage for other Zurich products once they understand it and experience its value. Outcome: Win-Win-Win Solution After two years of partnership, Zurich Seguros This type of innovative partnership has and Avon are excited to look for opportunities provided benefits to tens of thousands of Avon to expand their partnership to reach more agents: women in the market. As one Zurich Executive 1. Representatives: Women who did not said, “In insurance, thinking outside of the box have access to insurance through Avon is important to reach a new before are now receiving benefits free of customer base and grow charge. The protection they are receiving penetration within the market.” through Avon is valuable, especially the extended accidents for families and breast 65 Encouraging the younger generation of women to invest early in insurance products will also benefit insurance companies as they build rapport with women and build a base of lifetime clients 66 10. Country Profiles Brazil page 69 China Colombia India page 77 page 85 page 93 Indonesia Mexico Morocco page 103 page 113 page 121 Nigeria Thailand Turkey page 129 page 137 page 145 67 43 percent of SME owners are women and Brazilian women have expressed the need for insurance products that facilitate access to credit 68 BRAZIL FIVE INSIGHTS 1. By 2030, the 4. 43 percent of “Having private healthcare coverage is the insurance premium small and medium spend of women clients enterprise (SME) second most desirable item in Brazil, after in Brazil is estimated owners are women. having your own house.“ to be $79 billion – $122 With over 70 percent billion, approximately of SMEs not having — Representative from BTG Pactual, Brazil eight to 12 times the insurance coverage, estimated premium they represent a clear of $10 billion spent by target market for “Private healthcare is very valuable to women in 2013. insurers. women as the public system is too busy 2. Women in Brazil 5. Women in and too crowded.” are willing to spend Brazil emphasize more on insurance, convenience as a key — Amelia, Sao Paulo, Brazil particularly for their criterion in purchasing household, than insurance, and mention in any other focus bancassurance and market, despite limited mobile as desirable compulsory insurance distribution channels. requirements. 3. Private healthcare is valued by Brazilian women over the public system for its quality and convenience. They are willing to pay for it as soon as it becomes affordable. SETTING THE SCENE: THE BUSINESS CASE B y 2030, the projected retail insurance premium opportunity for women in Brazil is expected to grow to $79 billion – $122 billion,1 approximately eight to 12 times the estimated retail premium of $10 billion2 spent by women in 2013.2 In 2030, the women’s life insurance market is expected to be between $41.8 billion – $64.5 billion, while non-life is expected to be between $27.7 billion – $42.3 billion, and health is expected to be $9.4 billion – $14.8 billion. The women’s market in Brazil is the second largest market opportunity among the 10 emerging markets of focus.3 69 BRAZIL AT-A-GLANCE $122 B WHAT’S CAUSING OVERALL THIS GROWTH? WOMEN’S GROWING INSURANCE FROM Increase in income $79 B MARKET Increase in labor force 8-12x participation $10 B Women’s willingness to protect their wealth for GROWTH their beneficiaries 2013 2030* Increase in assets Longer life expectancy Longer retirement years GROWING LIFE FROM Growing segment of single $64.5 B INSURANCE women Increase in women’s 8-12x $41.8 B household bargaining $5 B power GROWTH 2013 2030* Large protection gap for women-owned SMEs KEY SEGMENTS: HEALTH GROWING INSURANCE FROM $14.8 B 5-8x $9.4 B Women Entrepreneurs $2 B GROWTH 2013 2030* Salaried Women without Children GROWING *The 2030 market size estimate is NON-LIFE FROM bounded by: a) Baseline Growth (lower boundary): INSURANCE Growth in the number of women customers and individual premium $42.3 B spend per customer due to improvements in the women’s 9-14x socioeconomic factors b) Opportunistic Growth (upper boundary): In addition to $27.7 B $3 B socioeconomic improvements, assume successful efforts in targeting more women to purchase insurance GROWTH 2013 2030* products and in upselling/cross-selling products to each woman 70 COUNTRY PROFILE: BRAZIL Insurers should strengthen the retail channel by placing an insurance agent within shops to exclusively handle requests and questions on insurance products OPPORTUNITY DRIVERS Opportunity Driver 1: increases in income, given the value Opportunity Driver 2: Increase Increase in women’s socio- and convenience of private healthcare. in women’s household economic conditions bargaining power Longer life expectancy and evolving Increase in income and labor force roles in society: On average, women While regional and cultural variations participation: Women’s income in in Brazil live seven years longer than need to be taken into account, in Brazil has risen by 10 percent per year, men, but retire five years earlier.5 This general, as women’s income increases, while the labor force participation means women need to account for 12 so does their household bargaining rate has increased by 1 percent per more years of retirement compared power. With gains in employment year from 2008 – 2014.4 Discussions to men, which leaves a protection and income, women who were with insurers in Brazil have indicated gap that can be addressed through once decision influencers are now a strong positive correlation between pension products. In addition, over becoming decision-makers. Market the ability of women to earn disposable the last five years, the mean age interviews show that women are income and the purchase of insurance. of marriage in Brazil has risen by becoming more risk aware, and have The rise in the number of women seven years, which means a growing a higher appetite for protection earning an income means an increase segment of single women remain self- products, especially for their children. in opportunities in the life, non-life, supporting longer and are more likely and health insurance segments. For example, an interview with Banco to accumulate assets that need to be For life insurance, more women are Itaú in Sao Paulo found that the protected. These trends indicate that looking to protect their wealth for majority of decision-makers for their women have an increasing need for their beneficiaries, while for non-life dental insurance product are women. insurance, even though they may not insurance, more women are expected have realized it yet due to some of the to purchase assets such as cars and Opportunity Driver 3: Women constraints listed in the next section. entrepreneurs are underinsured homes, which will result in an increase in property and casualty protection for Brazil has one of the largest these assets. Market discussions have proportions of women entrepreneurs also shown that women are more likely in the G20; 43 percent of SMEs to spend on health insurance due to 71 COUNTRY PROFILE: BRAZIL owners are women.6 However, there WHY AREN’T MORE WOMEN IN BRAZIL is currently a very large protection gap, as 70 percent of SMEs do not BUYING INSURANCE TODAY? have any insurance. Insurers have There are strong growth opportunities not come to me,” stated Cara in Sao not yet recognized the commercial for insurers who are willing to invest Paulo, Brazil. This requires clients to opportunities in helping entrepreneurs in understanding and addressing have extensive knowledge of insurance grow their businesses. Market the needs of women; however, products. Women, who may not have interviews indicated that insurers women currently face several as much experience or confidence have not developed dedicated constraints in accessing insurance. in making financial decisions, may solutions for entrepreneurs in general, not know when or what products due to the risks associated with Many women are not aware of the to ask for, and may result in a lost starting new businesses. However, benefits insurance can bring to their opportunity to acquire protection. discussions with an AXA executive lives and even if they are, they tend who specializes in the SME market to be put off by the use of technical Many women do not feel confident highlighted that women-owned SMEs language in policies. Interview results in making financial decisions. are more likely to pay their financial from Brazil show that many women In Brazil, many women are strong commitments on time, making do not understand how pension influencers of financial decisions, but them a potentially more attractive products and life insurance work due may not yet be comfortable with customer base worth tapping into. to the lack of exposure and education. making financial product purchasing decisions themselves. Interview Lack of proactive offering of results suggest that women may insurance solutions prevents perceive financial decisions to be too women from better acknowledging complex and rely on their spouses the benefits. Bancassurance is an to validate their choices and make important insurance distribution in the final purchase. This includes both Brazil, particularly for the middle and household spending decisions as well upper income brackets as it acts as a as professional financial decisions “one-stop-shop” to meet customers’ related to entrepreneurial activities. financial needs. However, women “Women may choose the products, but today do not feel that their insurance many still rely on their husbands to make needs are being properly met by the final financial purchase,” stated Ana, bancassurance agents. Discussions an entrepreneur in Sao Paulo, Brazil. with focus group members highlighted that bancassurance representatives Women do not perceive the value are not proactive in reaching out to for money from insurance. Many offer insurance. “I have to go to my bank women see insurance as being too to ask them about the products; they do expensive. For the 40 percent of women below the middle income bracket,7 the average annual spend of $4438 on insurance can represent between 15 percent to 35 percent Case Study: of their annual income, and is not currently affordable to them. Porto Seguro Even for the 32 percent of women belonging to the middle income Brands such as Porto Seguro, Brazil’s leading vehicle and property insurer, bracket, insurance is still perceived have been able to differentiate themselves in the highly competitive as a luxury more than as a necessary motor insurance market by offering services targeted toward women, form of protection,9 illustrating the such as a help desk for computer issues. These services progress that needs to be made in are not related to the insured vehicle, but are tangible terms of financial awareness. benefits that also help integrate the Porto Seguro brand in everyday lives of women. Insurers will do well to invest in understanding the daily needs of women and the types of services they can provide to bring value. 72 COUNTRY PROFILE: BRAZIL Key Segments 1. WOMEN ENTREPRENEURS Women entrepreneurs are not targeted as a customer segment and lack understanding of how insurance could benefit them. In Key Characteristics: Owns her Brazil, 70 percent of SMEs do not have insurance. Due to the limited own business, may be balancing financial management training and support available to women professional and personal entrepreneurs, many are not aware of the benefits that different demands, may be married and insurance solutions can bring. Many women also rely heavily on their have children. spouses for financial contributions (interviews in Brazil showed that 40 percent of women entrepreneurs in Brazil have their spouse as a business partner) and risk business interruption in the event that their spouse passes away. In addition, because many women entrepreneurs operate their businesses from their homes, they risk losing both their personal and professional assets in the case of business interruptions. Women entrepreneurs lack access to credit. Women entrepreneurs, particularly in Brazil, have expressed the need for an insurance product that facilitates access to credit. Maria, the head of the women’s entrepreneurship association in Sao Paulo, stated, “I see a lot of women entrepreneurs struggling with obtaining credit without putting up their personal assets as collateral. Some type of insurance that can guarantee women’s initial access to credit and help them build a credit history would be very beneficial as they start and grow their businesses.”  ALARIED WOMEN 2. S Making insurance more tangible is key. Many women in Brazil WITHOUT CHILDREN struggle to find the value of insurance; they make premium payments without knowing if they will receive the benefits and/or they buy into Key Characteristics: May certain insurance products such as life and pension that do not pay out be career-oriented, may until far out in the future. “I pay into my policy on a monthly basis, but what have tertiary degree, does happens to pay outs in the future? Are they secure?” Denise from Sao Paulo not have children. stated. They prefer to spend their income on goods that benefit them in the short term, and worry about their retirement “when they get there.” For Medium Income: While generally well-educated, Affordability is the main barrier to accessing private healthcare. may still be unfamiliar Private healthcare is especially desired by women in Brazil as the with financial products. private health system offers better quality care and shorter deadlines. A representative of BTG Pactual, a financial company, stated “having private For Upper Income: May be healthcare coverage is the second most desirable item in Brazil, after having familiar with financial products, your own house.” However, only 27 percent of the population actually has but still lack confidence in private health coverage10 as it is very expensive. “Private healthcare is very making the right decisions. valuable to women as the public system is too busy and too crowded,” stated Amelia in Sao Paulo. “Women who have bargaining power are much more likely to spend on their families, including providing them with full financial protection. They are also likely to purchase life insurance to make sure their children are taken care of.“ — Executive, Willis, Sao Paulo, Brazil 73 COUNTRY PROFILE: BRAZIL HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN To overcome these constraints and to Tapping into this has the potential to Strengthen multiple distribution tap into the full potential of the create a multiplier effect, to help channels to better engage women women’s market, insurers will need to insurers better target the needs of and proactively offer products/ find solutions to raise awareness, offer women and to increase the number of services. Women in Brazil identified tangible benefits, and develop women clients. bancassurance as a convenient insurance solutions that proactively “one-stop-shop” distribution point. meet the needs of women and reduce Risk prevention and financial However, to truly meet the needs of cost at affordable prices. education campaigns are key to busy women, bancassurance providers increasing awareness among need to use data analytics and Leverage the women’s workforce women. Interview results show that customer segmentation to predict and and its understanding of women’s financial literacy enables women to address the product and service needs to better develop and educate their peers and employees on demands of their women clients, based distribute products. Insurers need to the importance of savings. This type of on their banking history. This is explore how to better leverage the informal education is already occurring particularly important for women who women’s workforce and salesforce. among women, and insurers can need protection, such as women who Currently, 33 percent of the insurance leverage their network of employees to recently purchased a home, but may agents in Brazil are women, an increase dispense this kind of informal advice not be aware of their protection needs. from 28 percent in 1998.11 Interviews and increase financial awareness. with Willis in Sao Paulo found that Mobile is another channel that can be women brokers appear better able to Insurers may also choose to partner used to reach women in remote areas understand and meet the protection with the government and women who may not have convenient access needs of the entire family, not only business associations to develop such to traditional channels. Studies have those of other women. Given the educational campaigns. In some shown that women prefer mobile dominance of the broker distribution developed markets, road-safety applications to help them with channel in Brazil, it is important that campaigns are often a joint initiative by planning and productivity, so offering insurers tap into the relationship- insurers and the government. applications to educate women and building skills of women to expand their Awareness about maintaining a help them plan for their insurance and customer base. Insurers and brokers healthier lifestyle and the benefits of financial needs will be a very valuable interviewed did not provide gender- health insurance is another area that is tool for women.12 specific training for their salesforce to important to highlight. help both men and women better Collect gender disaggregated data Provide transparency and easy-to- to better understand the lifestyle reach women clients, which is already understand language in the policy needs of the different women implemented in some mature markets terms and claims process to customer segments. Insurers need to such as the United States. facilitate financial decision-making. overcome the stereotypes in the Interviews with insurers and brokers Women interviewed in Brazil found the market and invest in understanding the found that women are also well technical language used in insurance product and service needs of different represented at management level (41 product descriptions to be segments of women. Needs vary percent); however, the proportion of overwhelming and confusing, causing depending on the woman’s lifestyle and women drops at the executive levels them to shy away from purchasing socio-economic status. Insurers will be (20 percent). Women in leadership decisions. In terms of the claim process, able to explore and effectively target positions are important as they bring market research shows that women the women’s segment further only if their own life experience and value the functionality of online claims they start collecting data on a more perspective in setting the strategic tracking more than men. To them, it granular level, so that they can perform direction and product design, as reduces the uncertainty of whether the analytics on gender disaggregated data. indicated by one woman leader at AXA: claim will be paid and also allows them Higher data granularity could include “I provide input from my [woman’s] to proactively plan for the outcome, gender-specific data on products, perspective to understand if the product including alternative solutions. distribution channel preferences, usage makes sense and address my needs.” of add-on services, and age group Additionally, women employees and analysis. brokers tend to act as informal advisors for their family and friends and can thus advocate for the insurance company. 74 COUNTRY PROFILE: BRAZIL How to Meet the Needs of: 1. WOMEN ENTREPRENEURS of what risks they are exposed to and how insurance can support them in further growing their Offer business partnership insurance. While business. Agents need to be better trained to advise currently not popular, partnership insurance can be them on protection possibilities. important to protect the interest of both business partners and ensure business continuity in the case of 2. SALARIED WOMEN WITHOUT CHILDREN death of one of the partners, or divorce. This product may be especially important for women in Brazil, Consider strengthening distribution channels since many are heavily dependent on their spouses for within retail stores. Insurers should strengthen the financial contributions. retail channel by placing an insurance agent within shops to exclusively handle requests and questions on Offer bundled personal and professional packages. insurance products. This will be important for retailers For women entrepreneurs who run their businesses that sell high-value goods, as these are the products from their homes, bundling insurance packages for for which women are more likely to request insurance. personal and professional needs (for example, bundling business interruption insurance with health insurance Make insurance tangible through add-on services. or employee accident insurance) will be helpful in Insurers should look to offer add-on services in protecting against the loss of income in case they or addition to the coverage itself, as this will make their employees are unable to work. Flexibility to adapt insurance benefits more tangible. “Women are keen the product to the needs of the business will be very to insure themselves as they are increasingly looking for important. stronger protection; but they also want the service that comes with it…basically the full package, and insurance Target marketing efforts and train agents to companies should capitalize on that,” stated the CEO of better advise clients. Marketing needs to ensure AXA in Sao Paulo, Brazil. that women entrepreneurs get a better understanding Endnotes 1. Predicted growth calculated based on projected female labor 7. Francisco H. G. Ferreira, Julian Messina, Jamele Rigolini, force participation (sourced from ILO), projected female Luis-Felipe López-Calva, Maria Ana Lugo, and Renos Vakis. income (sourced from ILO), and a predicted increase in “Economic Mobility and the Rise of the Latin American number of women customers based on the proportion of Middle Class,” Washington, DC: World Bank, (2013). women in who purchase insurance in developed markets 8. Swiss Re, “World Insurance in 2013: Steering Towards (e.g., France) Recovery,” Sigma, no 3, (2014): 1-47 2. Calculated using Munich Re. (2015). Insurance Market 9. Francisco H. G. Ferreira, Julian Messina, Jamele Rigolini, Outlook. Luis-Felipe López-Calva, Maria Ana Lugo, and Renos Vakis. 3. Ten focus countries: Brazil, China, Colombia, India, Indonesia, “Economic Mobility and the Rise of the Latin American Mexico, Morocco, Nigeria, Thailand, and Turkey Middle Class,” Washington, DC: World Bank, (2013). 4. World Economic Forum, “The Global Gender Gap Report,” 10. Ibid. Insight Report, (2008 and 2014). 11. Francisco H. G. Ferreira,, Julian Messina, Jamele Rigolini, 5. International Labour Office, “ILO Social Security Inquiry; Luis-Felipe López-Calva, Maria Ana Lugo, and Renos Vakis. Indicator: old-age pensioners recipient ratio above “Economic Mobility and the Rise of the Latin American retirement age,” ILO Database, Accessed April 2015. Middle Class,” Washington, DC: World Bank, (2013). 6. EFE, “Women Account for 43pct of Brazil’s entrepreneurs,” 12. Qualcomm, Vital Wave, GSMA mWomen, “Transforming Fox News Latino, February 24,2015. Women’s Livelihoods Through Mobile Broadband,” (2014). 75 Women who had a personal experience with loss and its associated financial impact were more aware of the benefits insurance can offer 76 CHINA FIVE INSIGHTS 1. By 2030, the 3. Rapid urbanization “Whoever targets women clients in insurance premium has increased spend of women clients women’s desire for the market first will have a first-mover in China is expected family protection that advantage and earn the fast growing to reach between includes protection for income of this increasingly important $375 billion and $575 aging parents, who may customer base.” billion, approximately live further away and/ six to nine times the or in more rural areas. — Executive, National Insurer, Beijing, China estimated premium of $65 billion spent 4. Women highly by women in 2013. value their children’s China represents education and are “In China, buying insurance for the family looking for products the largest market is often a woman’s task because they are out of the 10 focus to help them save for more likely to be concerned about the countries in this study. expensive overseas needs of the family. Men are more self- education in the future. 2. Over the last six focused, while women spend money to 5. Women years, women’s promote their family. The majority of my salaries in China have entrepreneurs make [life insurance] clients are women because grown by over 60 up 25 percent of all they are the ones asking me for family percent, increasing entrepreneurs in products.” their sway over the China, a market poised family wallet. to grow if women can — Bai, Agent, Beijing China obtain better access to finance.1 SETTING THE SCENE: THE BUSINESS CASE B y 2030, the insurance premium spend of women clients in China is expected to reach between $375 billion and $575 billion, approximately six to nine times the estimated premium of $65 billion spent by women in 2013. About $205 billion – $315 billion is expected to come from the life insurance sector, while non-life is expected to account for $152 billion – $232 billion. The health segment is expected to grow to about $18 billion – $28 billion. China represents the largest women’s insurance market out of the 10 focus countries due to the already large base of women clients. 77 CHINA AT-A-GLANCE $575 B WHAT’S CAUSING OVERALL THIS GROWTH? WOMEN’S GROWING Increase in disposable income INSURANCE FROM MARKET $375 B Improvement in education Delay in marriage and childbirth 6-9x $65 B to focus on career Increase in women’s bargaining power GROWTH Increased appetite for 2013 2030* financial protection Willingness to spend on protection for their children, parents, and in-laws. GROWING Longer life expectancy LIFE FROM strengthen the need for life and pension products INSURANCE $315 B One child policy strengthen the need for life and pension products 6-9x $36 B $205 B Willingness to spend more on value-added services, convenience and comprehensive protection GROWTH 2013 2030* Urbanization i.e. women cannot rely on alternative informal solutions Growing women entrepreneurs’ segment HEALTH GROWING KEY SEGMENTS: INSURANCE FROM 5-9x $3 B $28 B $18 B 2013 2030* Working Mothers GROWTH GROWING Women Entrepreneurs NON-LIFE INSURANCE FROM *The 2030 market size estimate is bounded by: a) Baseline Growth (lower boundary): $232 B Growth in the number of women customers and individual premium 6-9x spend per customer due to improvements in the women’s socioeconomic factors $26 B $152 B b) Opportunistic Growth (upper boundary): In addition to socioeconomic improvements, assume successful GROWTH 2013 2030* efforts in targeting more women to purchase insurance products and in upselling/cross-selling products to each woman 78 COUNTRY PROFILE: CHINA OPPORTUNITY DRIVERS Opportunity Driver 1: Increased than men’s, while life expectancy still favor men in inheritance despite disposable income and appetite for women is longer (76 years old).4 equality under the law. for financial protection Women will therefore need to ensure continue to drive women’s that they have the resources to live Opportunity Driver 4: insurance market Urbanization means that 21 years in retirement.5 Additionally, the one child policy will increase the women cannot rely on From 2008-2013, women have alternative informal solutions increased their salaries by over 60 double burden to younger generations. in place of insurance percent.2 This rapid growth of the It will also compromise the extent to middle class has been accompanied which elder generations will be able to Urbanization exceeded 50 percent in by improvements in health conditions, receive support. This will put significant 2012, and has grown massively since education, and an increased disposable pressure on the social pension system, 1992 when the urbanization level income, making women more likely to and may reduce the quality of life was just 23 percent.6 Urbanization spend on products such as insurance. experienced by retirees. affects the traditional family set-up Market discussions also revealed that and informal protection network as Opportunity Driver 3: Women in there is a trend of women delaying children may move to bigger cities for China are willing to spend more marriage and childbirth to focus on their careers and leave their parents on their insurance cover their career and to “leverage that they behind. Given women’s “sandwich” went to university.” Discussions with AXA and other generational position, with the duty to insurers indicated that women support their children, their parents, Overall, women’s contribution to and in-laws, they are in need of are less price sensitive than men household income has increased, protection solutions for the extended for both life and health products. along with women’s bargaining power family. Women are willing to pay more for and their ability to make decisions on value-added services, convenience, household purchases and financial Opportunity Driver 5: Women and comprehensive protection. The decisions. Today 47 percent3 of Chinese entrepreneurs’ segment poised importance of protection extending women pay for their own health to grow if funding is secured to all family members was strongly insurance. The importance of health emphasized by participants during Women own 73 percent of the start- insurance extends to women’s families, the market research. Women clients ups in China; however, as a result of and market research indicates that interviewed indicated that they are unequal access to credit, a huge decline women are willing to spend more on willing to put 10-20 percent of their in female ownership can be noticed as protection that is ‘managed’ for their salary towards protection as compared businesses grow in size and maturity.7 children, parents and in-laws. to about 5 percent today. Women also Research suggests a lack of gendered recognize the importance of using approach for lending, and women- Opportunity Driver 2: Longer insurance to protect their assets, owned businesses are not large life expectancy and one child policy strengthen the need for especially since societal customs enough to be of interest to banks.8 life and pension products With the rise in the number of women entrepreneurs and women-owned Trends in retirement, income, and life businesses in China, insurers can use expectancy indicate that women could “Having insurance is more this opportunity to provide tailored require life insurance and pension secure than marrying a products that would facilitate access products to a greater extent than their male counterparts. For instance, the rich husband. In the case to credit. statutory retirement age for women in of divorce, woman will at China (55 years old) is five years earlier least maintain her insurance policy investments under her name, as opposed to losing them to her husband like she would a home.” – HuaChing, Head of Household, Beijing, China 79 COUNTRY PROFILE: CHINA WHY AREN’T MORE WOMEN IN CHINA BUYING INSURANCE TODAY? Currently, women face several them is not often discussed. Focus along with experiencing loss (such as constraints in accessing the group discussions indicated that economic/natural disaster or death of a insurance market. Acknowledging women who had some personal family member) significantly increased these barriers and providing active experience with loss and its associated their concern about the financial support to overcome them will be financial impact were more aware burden associated with not protecting critical to tap into the women’s of the benefits that insurance can their legacy for their children. insurance market opportunity. offer; the level of awareness also varied with age and marital status. Finally, market research shows that Women’s awareness about despite women’s significant interest insurance and its benefits is Interviews with older, married women in protecting their legacy, they do uneven across age, income, and with children showed that they were not know how to do so. Increased social groups. Culturally, death and more familiar with the benefits of insurance and risk management disasters are considered very morbid insurance. Increased likelihood of education efforts are needed to protect topics in China, and planning for having accumulated wealth and assets, against the potential threat of loss. Key Segments  ORKING MOTHERS 1. W Women demand family solutions for health and life. Market discussions with insurers revealed that they have tried to market women- Key Characteristics: Focus is on specific products for health insurance, with increased protection for providing for their children and pregnancy and women-specific illnesses. However, most of them stopped their future (finance, education); providing them due to low uptake. Discussions with women in China may be financially independent confirmed that they have a stronger interest in products that include and may want to protect their coverage for their entire family than products that cater only to them. own assets Annuity products are highly desirable. According to conversations For Middle Income: May be with agents, annuity education funds have seen a widespread increase in used to relying on family popularity. More and more parents are aiming to send their children to and friends for help, but, study overseas, and many are looking for annuity insurance to plan for due to urbanization, no the costs. Young parents may lack the awareness that they need to start longer has strong informal paying into these funds early on. support network Urbanization and reduced family support structures make women For Upper Income: Have ample less able to care directly for their parents. The rise in urbanization discretionary income to spend means that women are more likely to live further away from their family on sophisticated financial and cannot care for their parents as they used to in the past. However, products, but may also prefer they expressed the belief that insurance and innovative products could less risky options such as help them in managing the distance. They indicated that they are willing savings/checking accounts to pay for their parents’ health insurance and additional care such as a household helper. In the event of divorce, women face higher financial risk. Market discussions revealed that divorce and the split of assets are a major concern for women. Although not often expressed publicly, women are more likely to purchase insurance to protect their wealth in the case of divorce. This is partially driven by unequal distribution of property; as only 30 percent of women are formally listed as co-title owners and reimbursed for their contribution, many women are afraid of being left with no assets in the case of divorce.9 80 COUNTRY PROFILE: CHINA HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN Women feel current product To tap into the women’s market, addressed according to demographics. offerings do not fit their needs. insurers need to develop targeted Interview results with single women education campaigns which are tailored The younger generation requires under 30 show that the single to demographics. These should explore education regarding the economic women segment does not purchase how products can meet women’s burden of loss in order to demonstrate insurance outside of what is offered needs, develop family solutions, the value of insurance for themselves, by their employers. Although they and support women entrepreneurs and their current (such as parents) or see the value for insurance, they with risk mitigation solutions. future family members (such as spouses have not accumulated enough or children). In addition, demonstrating assets to protect or have not Targeted education campaigns the benefits of contributing early to experienced the financial cost of loss tailored to different demographics. a pension plan will help support the to justify the insurance premium. The differences in insurance awareness younger generation in maintaining between generations, and income a quality lifestyle when they retire. levels, need to be considered and Key Segments  OMEN ENTREPRENEURS 2. W Women entrepreneurs lack access to finance and understanding of risks they face. Self-employed workers are required to have medical Key Characteristics: Owns a insurance, however, pension and work injury insurance being voluntary. business, may be balancing Today, the insurance industry has not addressed women entrepreneurs professional and personal with dedicated solutions. Many women entrepreneurs pointed out that demands, may be married and they do not understand all the risks they are exposed to and often only may have children realize it when it is too late. To pay for the loss, they will then need to take out a loan in order to keep the business running. Women entrepreneurs make up 25 percent of all entrepreneurs The Chinese government has recognized the constraints women in China, 38 percent of micro entrepreneurs face — in particular in obtaining collateral to guarantee a and small business owners, loan — and are providing programs to help target women entrepreneurs. and 73 percent of the start- In particular, it offers credit guarantees to help women secure a bank up owners. Insurers cannot loan without collateral under the condition that they have obtained afford to overlook this growing entrepreneurial certification. Often, these credit guarantees are done segment — for example, women as either a joint guarantee and/or as loan insurance. As for other types entrepreneurs make up 46 of insurance, the industry does not proactively offer credit insurance to percent of all business owners women yet. that run their businesses on Alibaba’s business portal, the Chinese e-commerce giant.10 81 COUNTRY PROFILE: CHINA How to Meet the Needs of: 1. WORKING MOTHERS mother in Beijing, China stated. Women may not be able to respond on time in case of an Develop family solutions for health insurance. emergency, and may lose income when they need to Given the lack of uptake on women-specific health care for them due to health issues. Health insurance products and needs described by women for coverage could offer short-term income protection to cover the for the whole family, insurers need to investigate how costs associated with these trips. they can not only capture the whole family under one policy but also ensure women’s peace of mind about 2. WOMEN ENTREPRENEURS their parents. As stated in the section above regarding urbanization, insurers should seek to develop solutions Promote education on risks and support that consider the range of dependents that a woman women entrepreneurs in accessing finance with might care for, with add-on services that provide collaterals. Women entrepreneurs stated that they immediate support. have a sound understanding about the risks they face as entrepreneurs; however, when presented with risk Develop products that help women save for scenarios, they admitted that they did not consider the their children’s future. The future of their children impact when misfortune occurs. Often, their proposed is of utmost importance for women, and they are solution was to take out a bank loan, for which they increasingly aiming to send their children to study might not be eligible. overseas, an expensive investment. Many women resort to saving accounts at banks but do not consider Insurance outside commercial insurance can support insurance as an alternative. Insurers should develop women entrepreneurs as it will help them to keep products with a guaranteed savings element. their business running. Significant underestimated risks included income protection while suffering health Develop products to meet women’s concerns for issues and retirement planning. financial self-sufficiency. For women concerned about financial losses due to divorce, insurers should Women entrepreneurs also face issues accessing demonstrate how whole life and unit linked life funding from banks, despite a government program products with annuities can help these women grow in place to support them with collateral for the loan. their wealth and protect against bankruptcy in case Credit life insurance could present an alternative for they are not able to maintain joint assets. Insurers the bank to ensure that women will be able to pay should offer flexibility in life products to meet women’s back the loan in case anything happens, or to provide investment and life needs, for example, by providing additional payment protection insurance in case they a window when the insured can withdraw some of will not be able to pay their full installment. their investment or receive the annuities from their unit linked products based on setbacks in life (such Insurers can partner with the government on outreach as a divorce), as opposed to a fixed timeframe or at programs and the Women’s Entrepreneurship maturity. Association of China to reach out to the entrepreneur segment. Develop products that consider women’s needs in the context of urbanization. As women now tend to live further away from their parents due to urbanization, many women want to ensure not only that their parents receive sufficient health care but also that there is a quick response in the case of an emergency. “Health insurance should offer to send someone to my parent’s house in case they suffer from a broken leg to support them with the household,” Xin, a working 82 COUNTRY PROFILE: CHINA Encouraging the younger generation Explore products and product with health clubs, which not only of women to invest early in features designed to cater to increases the likelihood of purchase, insurance products will also benefit women and their families’ needs. but also encourages fitness and a the insurance companies as they There are currently few products in healthy lifestyle. build rapport with women and the market designed specifically for build a base of lifetime clients. women. The existing products are Leverage online channels to increase mainly supplementary health insurance proximity to women customers. Interviews with women in their 40s for female critical illness needs (such Studies indicate that women in show that their primary interest in as cancer, maternal care, and other China are especially drawn to making insurance is in the insurer’s ability to needs) and plastic surgery for accident purchases online for reasons including better help them support their aging provisions. Conversations with cost savings, time savings, and parents, but these women are not insurers indicate that these products reliability.11 For insurance in particular, always aware of the products and are not popular in the consumer women valued online contact points services available to them. Insurers market. This is partially due to lack for research, purchase, and claims. should proactively inform their women of awareness, but can be primarily Insurers should ensure that they have clients about product extensions and attributed to many women’s concerns sufficient and clear information about enhancements and develop wrap- for their family’s needs rather than different offerings available online, and around services to ensure women’s their personal coverage; thus these that women can also buy the cover peace of mind. Proactive education products should be considered as based on online quotes. Some women of coverage would enhance trust in part of broader family coverage. indicated that this would enable them insurance companies and demonstrate to make quicker purchasing decisions their interest in preserving the stability In addition, women were also receptive and free up their time. of the Chinese family, ultimately to tangible rewards, such as discounts allowing deeper penetration of to health clubs or spas, with the coverage and services to the over-40 purchase of a life policy. This is an female demographic and their families. opportunity for insurers to partner Endnotes 1. Chen Tingting and Kate Bollinger, “Leveling the Playing Field 6. Compiled by United Nations Development Program. “China for China’s Migrant Women Entrepreneurs,” December 3, National Human Development Report 2014” 2013. http:// 2014. www.cn.undp.org/content/dam/china/docs/Publications/ UNDP-CH_2013%20NHDR_EN.pdf 2. World Economic Forum, “The Global Gender Gap Report,” Insight Report, (2008 and 2014). 7. “What all nations can learn from gender economics in China,” Forbes, October 17, 2014. Available at http://www.forbes. 3. World Bank Global Findex Database 2014. — database on com/sites/forbeswomanfiles/2014/10/17/what-all-nations- personally paid for health insurance, female, 15+ The World can-learn-from-gender-economics-in-china/ Bank, “Global Findex Database 2014: Measuring Financial Inclusion around the World; Indicator: personally paid for 8. Ibid health insurance, female, 15+,” World Bank Global Findex, 9. Christina Larson. “How women lost out as China’s property Accessed April 2015. market boomed,” April 29,2014. Accessible at Bloomberg 4. International Labour Office, “ILO Social Security Inquiry; Business. http://www.bloomberg.com/bw/ Indicator: old-age pensioners recipient ratio above articles/2014-04-29/how-chinas-women-lost-out-as-the- retirement age,” ILO Database, Accessed April 2015. countrys-property-market-boomed 5. Economist Intelligence Unit, “Country Forecast,” Economist 10. Chen Tingting and Kate Bollinger, “Leveling the Playing Field Intelligence Unit Database, accessed January 2015. for China’s Migrant Women Entrepreneurs,” December 3, International Labour Office, “ILO Social Security Inquiry; 2014. Indicator: old-age pensioners recipient ratio above 11. “On the Rise and Online” The Economist. Accessed June 2015. retirement age,” ILO Database, Accessed April 2015. Accessible at The Economist. http://www.economistinsights. com/marketing-consumer/analysis/rise-and-online 83 Today, marketing efforts by insurers are focused on the technical details of insurance coverage, rather than on making the benefits of insurance clearer to the clients 84 COLOMBIA FIVE INSIGHTS 1. By 2030, the and has one of the best “I have a mortgage so I bought the required insurance premium environments for female spend of women SMEs (ranked third out credit insurance, but didn’t even know that clients in Colombia is of 20 countries for the my bank offered property protection. The predicted grow to $16 overall environment for agent didn’t offer it to me even though [he] billion – $25 billion, female entrepreneurs).1 knew I bought a home.” approximately five to eight times the 4. Non-life insurance – Selena, Working Mother, Bogota, Colombia estimated $3 billion is expected to premium spent by experience the fastest women in 2013. growth rates, due to an expected increase in 2. Colombian women assets held in women’s are more protection- names as their income focused, and are willing and purchasing power to buy insurance once increase. they are aware of the benefits of insurance 5. Women face a and feel that products higher protection meet the protection gap than men. On needs of their average, they need to households. cover 12 more years of retirement which will 3. Colombia has drive the demand in life the second highest and pension products. percentage of female executives in the world (53 percent of executives are women) SETTING THE SCENE: THE BUSINESS CASE T he Colombian market for women’s retail insurance has the potential to increase to $16 billion – $25 billion,2 approximately five to eight times the estimated premium of $3 billion spent by women in 2013. Life and non-life segments are expected to grow from $1.1 billion (life) and $1.7 billion (non-life) in 2013, to $5.7 billion – $8.8 billion and $9.9 billion – $15.2 billion respectively in 2030. Across all product lines, non-life insurance growth will be driven by women’s increase in purchasing power which will give them access to assets. The health market is expected to grow from $0.04 billion to $0.2 – 0.3 billion. 85 COLOMBIA AT-A-GLANCE $25 B WHAT’S CAUSING OVERALL GROWING THIS GROWTH? WOMEN’S INSURANCE FROM Increase in tertiary education MARKET $16 B Increase in savings and wealth 5-8x GROWTH $3 B Willingness to spend on protection needs Willingness to spend on family 2013 2030* and their well-being Increase in life expectancy for women Increase in retirement gap for women LIFE GROWING FROM Increase in women’s insurance INSURANCE take-up rates as a result of $8.8 B greater appetite for financial 5-8x protection $1.1 B $5.7 B Healthcare coverage and life insurance solutions a priority GROWTH 2013 2030* for Colombian women Favorable environment for development of women-owned SMEs GROWING KEY SEGMENTS: HEALTH INSURANCE FROM 5-7x $0.04 B $0.3 B $0.2 B Working Mothers GROWTH 2013 2030* GROWING Women Entrepreneurs NON-LIFE FROM $15.2 B *The 2030 market size estimate is INSURANCE bounded by: a) Baseline Growth (lower boundary): Growth in the number of women customers and individual premium 6-9x spend per customer due to $9.9 B improvements in the women’s socioeconomic factors $1.7 B b) Opportunistic Growth (upper boundary): In addition to socioeconomic improvements, GROWTH assume successful efforts in targeting 2013 2030* more women to purchase insurance products and in upselling/cross-selling products to each woman 86 COUNTRY PROFILE: COLOMBIA OPPORTUNITY DRIVERS Opportunity Driver 1: Opportunity Driver 2: Private by mandatory employer coverage;5 Improvements in healthcare coverage and life thus, as the number of women who socioeconomic conditions, insurance solutions are a graduate from tertiary education combined with greater appetite priority for Colombian women and enter the workforce increases, for financial protection, more women will receive benefit will increase women’s Market discussions have shown that from private health insurance. insurance take-up rates women in Colombia are more likely to spend their income on their family and In addition, women outlive men by The percentage of women with tertiary their well-being. In particular, women seven years and retire five years degrees in Colombia has increased by are willing to spend on healthcare and earlier on average; this creates a 16 percent between 2008 and 2014, protection as they are able to afford it. greater need for pension products while women’s estimated income to address these 12 additional years has increased by 50 percent over the There is a substantial difference of retirement. This retirement gap is same period.3 These trends will not between the quality of care provided expected to drive growth of pension only enable women to accumulate by the public system and that of the plans in the future. The difference in life wealth and assets but also to purchase private healthcare system. Although expectancy between men and women protection and savings products. the public healthcare system provides is also an opportunity for women to Focus group discussions revealed universal coverage (covering 97 persuade their husbands to purchase that Colombian women are more percent of the population), the life insurance, as the policy can help protection-focused and are willing to system is strained and lacks capacity support their entire family in case the spend a proportion of their income to provide quality care for patients.4 husband passes away and vice versa. to meet the protection needs of Private healthcare is seen as valuable their households once they feel that and is held by about 40 percent of insurance products meet their needs. the population. This is strongly driven 87 COUNTRY PROFILE: COLOMBIA Opportunity Driver 3: A vibrant WHY AREN’T MORE WOMEN IN COLOMBIA women’s entrepreneur market BUYING INSURANCE TODAY? Colombia has the second highest percentage of female executives in Currently, women face several Women’s insurance needs are the world (53 percent of executives constraints in accessing insurance not proactively addressed. Even if are women)6, and has one of the products and services. These bancassurance is not the dominant most favorable environments for the barriers need to be addressed distribution channel today (agents development of women-owned SMEs by insurers in order to tap into make up about 60 percent of the (ranked third out of 20 countries the potential opportunities for market), market interviews revealed for the overall environment for growth presented by women. that women value this channel to female entrepreneurs) due to the address all their financial needs at Women are not sufficiently aware once. However, women expressed support and education available. of the range of existing insurance dissatisfaction with the way banks Nevertheless, insurers have not solutions that exist to mitigate offer insurance products. They expect yet developed dedicated insurance risks. Insurance is perceived today as tailored insurance products to be solutions for women entrepreneurs. a “fee” that must be paid, rather than proactively offered, based on the data Interviews confirmed that only a necessary and beneficial investment that banks have on them. Selena, a property insurance is mandatory, and in protection. Focus group discussions survey participant, stated: “I have a insurers do not currently offer any have shown that even women who mortgage so I bought the required credit combined protection for business can afford insurance are not always insurance, but didn’t even know that and personal lines, thereby missing aware of the types of risks they my bank offered property protection. out on cross-selling opportunities. face and how insurance can protect The agent didn’t offer it to me even them. This can be partially attributed though [he] knew I bought a home.” to the few types of insurance that are compulsory. In addition, limited Women expressed the same level exposure to insurance is a particular of dissatisfaction about the ability issue for women who are just of agents to offer them tailored entering the workforce (such as products. While agents have less recent university graduates) and/or data about their clients compared “Do they actually think I pay accumulating assets, as they are not to banks, they can use informal attention to their boring acquiring the protection they need to conversation to identify clients’ needs. commercials which are not protect their current wealth and future income flow. When women are about Women expect simplified processes applicable to my life? I do not to retire, they need more financial and frequent contact points even know what they try to with their insurer. The women resources than their husbands, due offer.” to their longer life expectancy. interviewed stated that the claims process was too complex and — Daniela, Insurance Client, Bogota, Today, marketing efforts by insurers long: “Too much paperwork and long Colombia. are focused on the technical details waiting times, as my husband is not so of insurance coverage, rather than patient he passes all claim submissions on making the benefits of insurance on to me,” said Gabriela, working clearer to the clients. Raising mother from Bogota, Colombia. awareness among women clients could significantly favor market In Colombia, women respond better perception and take-up rate. In fact, to more personalized communication very little insurance marketing is than men; for example, they receive targeted toward women today. a greeting card from their insurers on 88 COUNTRY PROFILE: COLOMBIA their child’s birthday and a reminder luxury that is received as part of their to contribute to their children’s health employer-contributed plans and not “My insurance agent was plan. Women, however, also raised purchased individually. Bearing in aware that I was pregnant the issue of poor communication mind that, on average, women earn but did not recommend to from their insurers regarding updates approximately half the income of on their insurance policy status. men,8 they often perceive insurance as extend my private medical expensive and prefer to use informal insurance to cover my child.” Women see insurance as being insurance methods such as family too expensive. Currently, insurance contributions to meet their protection — Graciela, New Mother, Bogota, is mostly sold to the upper income needs. However, insurers need to Colombia bracket, which represents only understand if this perception is indeed 28 percent of the population.7 In a purchasing power constraint or a contrast, women in lower income lack of value-for-money assessment. brackets see life insurance as a Key Segments  ORKING MOTHERS 1. W Women want to protect their assets independently of their spouses. Interviews for this study with Liberty Seguro in Colombia Key Characteristics: Focus is on indicated that credit protection products are in demand due to the providing for her children and longer life expectancy of women compared to their spouses. In the case her children’s future (finance, of the death of a spouse, women want to ensure that they can maintain education); may be financially a certain quality of lifestyle. independent and want to protect her own assets. Current products lack flexibility to meet women’s changing needs for themselves and their dependents. Insurers see women as a For Middle Income: May be homogenous market and offer women-oriented products (such as used to relying on family and critical illness cover or cancer protection) without further segmenting friends for help, but due to their offer and marketing efforts according to women’s income and urbanization, no longer has lifestyle. Women want more flexibility to adapt the products to their as strong an informal support financial and family needs (for example, to use their life insurance network. payout as an education fund) instead of being offered the same standard set of products. For Upper Income: Has ample discretionary income to spend Discussions show that women are willing to spend on health insurance on sophisticated financial but indicated that the products are too generic: “My product coverage is products, but may also prefer the same as for my husband. What about pregnancy related checkups?” Susana, less risky options such as a new mother, stated. savings/checking accounts.  OMEN ENTREPRENEURS 2. W Women entrepreneurs’ protection needs extend beyond commercial insurance offerings. Despite the encouraging business Key Characteristics: Owns her environment for women entrepreneurs, market discussions revealed own business, may be balancing that women entrepreneurs tend not to have any insurance outside professional and personal the compulsory property protection for entrepreneurs. Insurers have demands, may be married and not been able to convince women of the benefits of commercial and may have children. personal coverage. 89 COUNTRY PROFILE: COLOMBIA HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN To overcome these constraints, be involved in the entire insurance Further classify women clients and tap into the full potential of process from purchasing, to claims, based on lifestyle preferences to the women’s market, insurers will payout, and renewal. Specifically, better understand their needs need to find solutions to increase women want to understand each step and develop product features. It is women’s insurance awareness, to and detail of the expected outcome. important for insurers to segment the offer tailored products proactively, women’s population based on their and to improve the claims processes Services such as reminders of lifestyles and to allow flexibility to and client communication. renewals, regular follow-ups on their meet their individual needs. This can investment portfolio, and options include everything from introducing Target education campaigns to track claims online help provide more flexible payout options (such to increase awareness among women with transparency of the as offering different payout timeline women. Insurers need to build process, help them set expectations options depending on life milestones) understanding around the common and avoid unwelcome surprises. to more targeted market strategies. types of risks women face, and the Currently, the add-on services offered different solutions insurance can Develop affordable insurance by Colombian insurers to women offer to mitigate them. This will be solutions for the lower end of the are mature and of high quality — particularly important for those who customer base, and make them everything from assistance with driving have just entered the workforce, accessible through alternative home after a party to legal assistance as insurers can help these women distribution channels. Due to the with filling out an incident report is manage their income and financial particularities of the lower income widely available — but these are not needs. Programs on the benefits segment’s purchasing behavior and differentiated based on the various of insurance for their children, the risk awareness, retailers and grocery segments of the women’s population. general household well-being, and stores are gaining in popularity their retirement needs will help put as ways to distribute insurance. Analyzing data based on segment can insurance into a context that is more Simple personal accident, credit also help insurers to develop more relatable and relevant for women. life, and warranty insurance can be tangible products for life insurance sold through retail channels. When and health insurance. They will be Strengthen distribution channels using these alternative distribution able to see what the most frequently to proactively address women’s channels, insurers will need to develop claimed conditions and incidents are, needs. Banks currently have a wealth dedicated salesforce training materials and to develop products accordingly. of client information that is not to make sure their products can be being leveraged to understand and successfully explained and sold. proactively meet the needs of women consumers. In order for bancassurance Another approach is to explore the to truly meet the “one-stop-shop” online channel, especially since women status expectations, further analytics in Latin America have been shown to and segmentation are needed. be more likely to purchase products online.9 Currently, the online channel “As women increasingly Agents should also be trained comprises a small proportion of have access to education, on how to better highlight and the market, as most women prefer they will have greater communicate the key attributes of face-to-face interactions. Security acknowledgment of products insurance products to women clients. concerns regarding online payments and risks, which will result This includes proactively identifying are another factor. However, there in an increased willingness customized solutions adapted to their is an increasing trend toward using income level and moment in their lives. online aggregator sites (such as to purchase insurance.” RedSeguro) that allow quick and easy Strengthen claims process and — Executive, Zurich Insurance Group, comparison and purchase of products, improve communication. It is Bogota, Colombia reducing costs for the client.10 Online important for insurers to view sales and mobile sales channels can be as the start, but not the end of a used to reach women in remote relationship with women clients. areas, or those who have no access Women have a greater appetite to to traditional distributions channels. 90 COUNTRY PROFILE: COLOMBIA How to Meet the Needs of: 1. WORKING MOTHERS 2. WOMEN ENTREPRENEURS Develop products to meet women’s concerns for Further bundle entrepreneurs’ compulsory financial self-sufficiency. For women concerned property protection insurance with other about financial losses after a divorce, insurers should products. Insurers should consider bundling liability demonstrate how whole life and unit-linked life with mandatory protection products such as property products with annuities can help grow their wealth protection, as this will raise awareness of the need and protect against bankruptcy in case they are not for professional liability insurance and encourage able to maintain joint assets. Insurers should offer women to purchase such insurance to protect against flexibility in life products to meet a woman’s needs by, business interruption. Bundling compulsory covers for example, providing a window when the insured with non-compulsory covers can create a platform to can withdraw some of their investment or receive the raise awareness about holistic insurance cover and its annuities from their unit-linked products based on support to entrepreneurial growth. Flexibility will also setbacks in life (such as divorce), as opposed to a fixed be essential to ensuring that women will be able to timeframe or at maturity. adjust their coverage and bundle based on the maturity of their business. For example, professional liability Develop family solutions for health insurance. may be less important with one employee, but may Women receive private health insurance from their gain more importance as the enterprise hires more employer. Insurers should explore ways to allow people. It is important to add personal line products to these women to add their children to their policies. the package, and the impact on the business should be Insurers should also investigate how disability products explained. could be tailored to women, for instance, by offering additional services to support women who have to Distribute through women’s entrepreneurship change their lifestyle because of disability. associations. Providing insurance through women’s entrepreneurship associations in local geographies enables insurers to access an entire network of clients, similar to affinity insurance schemes, where insurance is offered to a defined group of people. Insurers will be able to provide group rates on life and health products — which are generally lower than individual rates — to the entrepreneurs. Partnership with an association also allows insurers to educate its members about risk management. Endnotes 1. The Economist Intelligence Unit. “Women’s Entrepreneurial 7. Francisco H. G. Ferreira, Julian Messina, Jamele Rigolini, Venture Scope,” (2013). Luis-Felipe López-Calva, Maria Ana Lugo and Renos Vakis, ‘Economic Mobility and the Rise of the Latin American Middle 2. Total market size has been rounded for consistency. Class“, 2013. 3. World Economic Forum, “The Global Gender Gap Report,” 8. World Economic Forum, “The Global Gender Gap Report,” Insight Report, (2008 and 2014). Insight Report, (2008 and 2014). 4. Webster, Paul Christopher. “Health in Colombia: a system in 9. ComScore “Consumers in Brazil and Argentina Most Likely to crisis” April 3, 2012. Accessible at: http://www.ncbi.nlm.nih. Make Purchases Online, Females More Likely than Males to gov/pmc/articles/PMC3314050/ Buy Online in Latin America” Press Release. December 1, 2010. 5. Ibid Accessible at http://www.comscore.com/Insights/Press- 6. The Economist Intelligence Unit. “Women’s Entrepreneurial Releases/2010/12/comScore-Releases-Study-on-Latin- Venture Scope,” (2013). American-E-Commerce-Landscape 10. Ibid 91 Women feel that male agents do not sufficiently address their needs and may prefer purchasing insurance from women agents 92 INDIA FIVE INSIGHTS 1. Insurance premium 3. While a large spend by women in portion of the “…India will be the most interesting India has the potential Indian population country to watch; we anticipate that to be between $22 is considered low nearly 90% of India’s population will be billion – $35 billion, income, huge income ‘middle class’ by 2040.” approximately two growth projections to four times the indicate that these — Goldman Sachs, The Power of the Purse, 2009 estimated premium individuals may of $10 billion spent quickly grow into a by women in 2013. market for insurers. 2. Three million 4. Women are still micro, small, and underrepresented medium enterprises as insurance agents in India today have despite agents full or partial women being a strong ownership;1 women’s distribution force. entrepreneurship has been growing 5. The Indian at more than 4.5 government is percent annually.2 promoting insurance and pension schemes — women face larger protection gaps than men due to their longer life expectancy, making pensions a high potential opportunity for insurers targeting the women’s market. SETTING THE SCENE: THE BUSINESS CASE B y 2030, the annual women’s insurance market in India is predicted to be between $22 billion – $35 billion, approximately two to four times the estimated premium of $10 billion spent by women in 2013. In 2013, women spent $0.05 billion on health insurance premiums; by 2030, this can reach $0.1 billion – $0.16 billion per annum. Life and non-life segments are expected to grow at similar rates, from $8.6 billion (life) and $1.1 billion (non-life) in 2013, to $17.7 – $27.6 billion and $4.4 – $6.9 billion respectively in 2030. 93 INDIA AT-A-GLANCE $35 B WHAT’S CAUSING OVERALL THIS GROWTH? WOMEN’S GROWING Improvement in tertiary INSURANCE FROM education MARKET $22 B Increase in income 2-4x $10 B Increase in wealth and assets Increase in number of working women GROWTH 2013 2030* Growing awareness of insurance products among women, particularly in the life and health sector Supportive regulatory environment $27.6 B LIFE Willingness to provide for GROWING their children INSURANCE FROM Concern about being a burden to their families $17.7 B 2-3x $8.6 B Decrease in fertility rates and increase in life expectancy drive the need for protection in old age GROWTH 2013 2030* Rise in the number of women’s unions Growing demand for insurance coverage for women owned businesses HEALTH GROWING KEY SEGMENTS: INSURANCE FROM 2-3x $0.05 B $0.16 B $0.1 B Women Entrepreneurs GROWTH 2013 2030* Low-Income Customers NON-LIFE GROWING *The 2030 market size estimate is INSURANCE FROM bounded by: a) Baseline Growth (lower boundary): $6.9 B Growth in the number of women 4-6x customers and individual premium $4.4 B spend per customer due to improvements in the women’s socioeconomic factors $1.1 B b) Opportunistic Growth (upper boundary): In addition to GROWTH 2013 2030* socioeconomic improvements, assume successful efforts in targeting more women to purchase insurance products and in upselling/cross-selling products to each woman 94 COUNTRY PROFILE: INDIA Women and girls are at a particular disadvantage in markets such as India where adding additional family members to health coverage makes the plan unaffordable OPPORTUNITY DRIVERS Opportunity Driver 1: an ability to increasingly afford Improvements in socio- protection and savings products. “There are hardly any great economic conditions are increasing the number of specialized plans available for Opportunity Driver 2: Growing working women, driving awareness of insurance women. Insurance companies this segment’s potential products among women, have attempted creating such as a customer base particularly in the life and plans but they have no major health sector, is spurred The percentage of women with tertiary cost or feature advantage, in part by a supportive degrees has doubled from 2008 – 2014, regulatory environment 4 vis-a-vis a regular plan in the while women’s income has increased market.” by more than 20 percent over the Social security, insurance, and pension period.3 Women who can afford topics were a major focus of the — Mahavir Chopra, Director, Health insurance are willing to spend on health Indian national election campaign Insurance, Coverfox Insurance Brokers and life products, which represent a in 2014. Following the election, the particular area of growth. Increased Indian Finance Minister announced enrollment in tertiary education in February 2015 the introduction of means more women are expected to a universal social security system, enter the workforce in the coming which will give the population access years and will be exposed to optional to subsidized insurance and pensions private health insurance through their and provide coverage for accidents employers, increasing awareness of and death.5 Media coverage of these insurance products in the future. programs has helped to increase the awareness of insurance among the Greater financial inclusion and general population, including women. career prospects for women are allowing them to accumulate wealth and assets, creating a need for and 95 COUNTRY PROFILE: INDIA Opportunity Driver 3: Another consequence of these percent of total demand.14 While there Women think of others trends is the increase in elder care is no mandatory insurance coverage in homes.10 These cater to affluent connection with entrepreneurship, the Research findings from the Indian people, widows in particular, and higher stakes for women running their market show that women are more are typically inaccessible for lower- own businesses are likely to raise their likely than men to be concerned income groups which tend to willingness to purchase insurance. about providing for their children include a high proportion of women. and ensuring that their family is Insurance products that improve able to maintain the same quality accessibility of old-age homes to Figure A: Over 1 in 10 women has of life in the event that they can no lower-income women are likely longer provide for them.6 Women are outstanding loans as a result of to increase in the coming years. concerned about being a burden to median expenses their families and children through Opportunity Driver 5: A rise funeral costs and outstanding debts.7 in the number of women’s Outstanding Loans in % of Adult Population unions and a growing women’s Opportunity Driver 4: Decreases entrepreneur market Health and in fertility and increases in emergencies 12.6% life expectancy drive need The Ministry of Micro, Small, and for protection in old age Medium Enterprises (MSMEs) Home 3.2% estimated that the number of women- constructions Old-age care in India has traditionally led businesses in India grows by 4.51 been provided by the family network. percent annually,11 and around one-third However, women today are having Purchase of India’s early-stage entrepreneurs 2.3% home fewer children who can provide are women.12 The Indian government care for them in their old age. operates more than 25 different Women also outlive men by four School fees 6.0% entrepreneur schemes exclusively for years.9 These trends are increasing women.13 The total supply of formal women’s need for pension products finance to women-owned MSMEs in Funerals and weddings 3.6% to address this protection gap. 2012 was around $42 billion, resulting in a finance gap of $116 billion, or 73 Source: World Bank, 2011 Case Study: Unilever’s Project Shakti Hindustan Unilever Limited (HUL), Unilever’s business Moreover, HUL invests its resources in training the in India, generates about half its profits from rural entrepreneurs, helping them become confident, areas. To increase its market share, HUL sought to business-savvy professionals capable of running their increase its reach from 100,000 villages to 500,000 own enterprise. It is conceivable that a corresponding villages, but was constrained by insufficient retail channel to offer insurance coverage could be distribution networks, advertising coverage, and poor successful in the rural areas as well. Also, insurers roads and transport. To overcome these constraints, may wish to explore the possibility of corporate HUL created Project Shakti. Shakti contributes by tie-ups with such consumer goods companies and creating profitable microenterprise opportunities for leverage on their extensive distribution networks rural women. Armed with microcredit, rural women in rural India. Rather than building a network from become Shakti entrepreneurs: Direct-to-home scratch, insurers can seek to use the existing set- distributors in rural markets. This microenterprise ups of these companies to sell their products. offers low risks and high returns. The products distributed are some of the country’s most trusted brands of customer goods, and include a range of mass- market products especially relevant to rural clients. 96 COUNTRY PROFILE: INDIA Key Segments 1. WOMEN ENTREPRENEURS The women entrepreneur segment has not yet been penetrated. Women entrepreneurship is on the rise; there are nearly three million Key Characteristics: Own a micro, small, and medium enterprises in India owned partially or entirely business, may be balancing by women and employing over eight million people.22 However, women professional and personal entrepreneurs frequently lack insurance coverage, due to insufficient demands, may be married, and awareness and poor targeting by insurers. A major issue for women may have children. entrepreneurs is the lack of formal access to finance, resulting in a lack of collateral and start-up capital. Women entrepreneurs struggle with non- credit needs such as cash management and insurance, and lack access to non-financial services such as training, mentoring, and networking. 2. LOW-INCOME CUSTOMERS Women in the lower income segment lack access to insurers’ sales channels. Despite urbanization accelerating in recent years, 68 percent Key Characteristics: Focus is on of the Indian population still lives in rural areas.23 Fewer insurance making sure her basic needs policies are sold to the rural population compared to city-dwellers, are met, relies on family, due to difficulties in accessing these geographies. For example, health friends, and neighbors for insurance penetration in India is around 5 percent across India, but up to support and financial advice 13 – 15 percent in urban areas.24 Only a minority of sales are associated (which may not always be with mobile or online purchasing, which limits access to insurance for accurate), may worry about women in urban areas. leaving debt to her children. Women see the cost of insurance as too high and often cannot afford insurance. Currently, insurance companies cater primarily to the middle and high-income brackets, leaving the majority of the Indian population — and so the majority of women — without insurance coverage.25 Approximately 25 percent of the Indian population still falls under the low-income bracket, earning less than $1.25 per day, according to the World Bank, driving up the potential for microinsurance beyond typical products such as agricultural insurance and credit life for women. WHY AREN’T MORE WOMEN IN INDIA BUYING INSURANCE TODAY? Women are still not sufficiently of insurer’s portfolios, based on of compulsory insurance and served by the insurance industry and, statements by insurers.15 Several low levels of education limit despite the improvements outlined insurance products that cater to women’s exposure and literacy in above, the lack of awareness on women are currently being offered; insurance products. Low levels of insurance benefits remains a key however, few have been successful in compulsory insurance-only motor barrier. Moreover, for many women, the market.16 Media coverage shows vehicle insurance is compulsory – commercial insurance products are that women feel that male agents limit women’s insurance coverage, as simply too expensive despite increases do not sufficiently address their they are less likely than men to own in women’s incomes overall. needs and may prefer purchasing a vehicle and purchase insurance.18 insurance from women agents.17 The rural population is significantly Women’s needs are insufficiently less aware of insurance than the addressed by insurance companies. Although insurance awareness urban population.19 Lack of awareness Women only make up 20-30 percent is growing, in some areas, lack of the different types of protection 97 COUNTRY PROFILE: INDIA available limits decision-making HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS and fails to capitalize on women’s ability to influence the purchase TO BETTER PROTECT WOMEN decisions of others by not equipping To tap into the women’s market, being, and their retirement needs will them with the right knowledge insurers need to develop education help put insurance into a context that to perform this role effectively. campaigns, strengthen their is relatable and relevant for women, distribution channels, and develop and will enable them to learn more Women tend to rely on savings, product features to meet women’s about the different products available. rather than insurance, in case of needs. Pricing needs to be reviewed a health emergency. World Bank and women clients’ journey improved. Leverage women in the salesforce data on outstanding loans supports Bundled entrepreneur products to sell products to women clients. that there is a market for financial can support the growth of the Insurers in India primarily use individual investments in general and in particular women’s entrepreneur market. agents to place their products in the for women.20 For example, 12.6 percent market. While there are efforts to of women have outstanding loans in Targeted education campaigns increase the number of women agents, health and emergencies, indicating that to increase awareness among approximately 75 percent of them women are willing to spend more on women. Insurers need to build are still men. Findings indicate that health than on other types of expenses. programs designed to enable women male agents are not as successful as to better understand the concept and women in addressing women’s needs Finally, women and girls are at a advantages of insurance. They should as consumers.26 Insurers should take particular disadvantage in markets specifically focus on the most common steps to further grow the women such as India where adding additional types of risks women face for which agent salesforce and use them to tap family members to a health coverage insurance can offer peace of mind into the women’s insurance market. makes the plan unaffordable, and provide a real safety net against and coverage for female family the unknown. This will be particularly In India, experience by Bharti AXA Life members is often deprioritized.21 important for university students or Insurance shows that the average young professionals, as insurers can premium per policy sold by female help these women manage their agents’ can be up to 50 percent higher income and financial needs early on. than those sold by men agents,27 while Aegon Religare Life Insurance Programs on the benefits of insurance found that while 31 percent of agents for their children, the household well- are women, they bring in close to 40 percent of total Aegon’s business.28 Employing women agents in rural areas can help insurers to reach out to the near 70 percent29 of the Case Study: population that lives in rural areas. For example, in the manufacturing Support Women Agents industry, Unilever successfully engages rural women as their salesforce30 to In India, women expressed concerns about the lifestyle of the sell their products. Insurers need to insurance agent. For example, night time events with clients look into how to adapt the business (such as dinners) can be disruptive to family life, or even a model to reach out to more women. safety concern, especially if women are traveling alone. Conduct in-depth research on One way to address the safety concerns of women agents is for insurers what women expect from health and brokers to provide a ride–share program for women. For women insurance. According to the World agents who live in remote areas or who need to travel late at night, Bank, women in India have the highest a ride-share program will be invaluable to ensure their safety. The amount of loans outstanding for program needs to be flexible to adapt to a woman’s timetable – for health and emergencies.31 Insurers example, women who need to drop their children off at daycare will need to conduct research to find require a later pick-up time. Such out what women need from health programs exist in India; Bajaj Allianz, for instance, offers pick-up and drop- off assistance to women agents. 98 COUNTRY PROFILE: INDIA How to Meet the Needs of: 1. WOMEN ENTREPRENEURS Finally, to ensure that women are not excluded from family cover, insurers should consider Offer solutions for entrepreneurs. Women packaging family healthcare to automatically include entrepreneurs face many challenges in taking out bank all family members. An example of this is India’s Self- loans. Keeping in mind that entrepreneurship can be Employed Women’s Association’s (SEWA) family health used as a vehicle for economic growth as a whole, microinsurance plans which, although they are more and considering the number of women entrepreneurs expensive than individual coverage, keep incremental in the market, insurers should focus specially on the costs low by ensuring a larger population; between 2005 women entrepreneur’s market segment. Success in and 2009, this program tripled in size.33 this segment has a particular power of multiplication, enabling women to grow their business by offering Rethink distribution systems. Insurers need to credit life insurance policies and thus securing their think of innovative ways to reach out to the women access to bank loans. Furthermore, insurers can offer population outside of cooperation with MFIs. Insurer women life insurance policies with the incentive of can make further use of the growing online access using these as collateral to obtain bank loans at a lower and mobile penetration by targeting women-centric cost. Costs can be lowered in the long run as women platforms and domains or online media sites geared entrepreneurs enter into life and health insurance toward women. The effect of this is amplified, especially contracts by assuring that the entrepreneurs receive by the growing significance of mobile phones. Insurers adequate illness-related treatment so their working have an opportunity to draw learnings from Project ability is optimally preserved. Life insurance coverage Shakti, an innovative and successful rural distribution may also stimulate women to seek other insurance initiative of HUL that targets small villages populated by solutions such as bankruptcy insurance. less than 5,000 individuals (see Case Study: “Unilever’s Project Shakti”). 2. LOW-INCOME CUSTOMERS Identify opportunities to lower costs, such as Explore microinsurance market for family cover. through mobile distribution or partnerships. Women play a role as influencers in their households Furthermore, as women do not currently see as well as caregivers, and should therefore be a natural insurance as an affordable product, insurers need to segment to target for the insurance industry. However, review their pricing and also identify their major cost the majority of products available in the market are drivers — a strong cost driver will most likely be the not affordable to them. Insurers need to think beyond agent distribution model. Offering more products via traditional microinsurance products such as agricultural mobile phones will help to lower distribution costs, as and credit life covers to cater to specific events in a commissions for agents are usually high, and increase woman’s lifecycle, such as childbirth or a spouse’s death. reach. As online access in India continues to grow as expected,34 insurance products can be offered via the Women are particularly vulnerable to health issues and online market as well. tend to delay seeing a doctor for cost reasons. Pregnancy and maternity-related riders, in particular, are of utmost importance. Focusing on women means planting a seed to grow the individual cover to a family cover. 99 COUNTRY PROFILE: INDIA insurance, whether it is related to rise, by working to better identify the insurers have an opportunity to align women-specific conditions or for clients that are entering the middle their products around the available the benefit of their children. class and retaining them by offering government subsidies to optimize them a higher level of protection. A uptake and returns for clients, in Make use of the knowledge that product built on adding additional particular for women. In offering women are key influencers for short-term protection would also longevity-oriented products, insurers financial decisions in a household. In require new distribution partners can also address women’s increased India, men are traditionally the financial as other channels, such as banks or need for retirement savings as they decision-makers throughout all income telecommunication providers, which are experiencing lower fertility rates, brackets, with women being influencers might be better positioned to capture and thus cannot rely as much on of financial decisions. In tailoring and the rise in income than agents. their children. In addition, insurers targeting products, insurers should raise can help make old-age homes women’s awareness of insurance with Leverage ongoing discussions and more affordable with a suitable a view of enabling and empowering media coverage. With current plans insurance coverage advance. women as advocates for insurance by the Modi government elected in in household financial decisions. 2014 to improve insurance and pension coverage for all Indians, the topic is Convert clients along their journey currently receiving significant media from lower income to middle class. attention. Furthermore, government ‘‘Studies show that women are A study from Goldman Sachs on the subsidies are available — for example, key drivers for a sustainable power of the women’s consumer for pension schemes — if individuals growth in a developing market notes that “Beyond 2025, India enter into certain types of contracts. will be the most interesting country to country.” Insurance companies should use the watch; we anticipate that nearly 90% of publicity related to current discussions — Tapan Singhel, Managing Director and India’s population will be ‘middle class’ to increase awareness of their CEO, Bajaj Allianz General Insurance, by 2040.”32 Insurers would be wise to products in the market. Furthermore, Pune, India 8 capture this growth as clients’ incomes 100 COUNTRY PROFILE: INDIA Endnotes 1. The International Finance Corporation (IFC), “Micro, Small and 19. Harshal T. Pandve, and Chandrakant V. Parulekar. “Health Medium Enterprises Finance Improving Access to Finance for insurance: Is Indian rural population aware?” (2013). http:// Women-owned Business in India,” (2014). www.ncbi.nlm.nih.gov/pmc/articles/PMC3783668/ 2. Daniela Yu and Yamini Tandon, “India’s Big Problem: Nurturing 20. The World Bank, “Global Findex Database 2014: Measuring Entrepreneurs,” Gallup, August 1, 2012 Financial Inclusion around the World; Indicator: Outstanding Loans in % of females, 15+,” World Bank Global Findex, 3. World Economic Forum, “The Global Gender Gap Report,” Accessed April 2015. Insight Report, (2008 and 2014). 21. “Microinsurance that works for Women: Making Gender- 4. Gauri Kohli, “Growth insured — A Close look at the Indian Sensitive Microinsurance Programs,” Women’s World Banking, Industry” January 27, 2015. Zurich Insurance Company, ILO Microinsurance Innovation 5. Shishir Sinha, “Govt announces details of new insurance, Facility and the Swiss Development Cooperation, (2009). pension schemes,” The Hindu Business Line.March 2, 2015. 22. The International Finance Corporation (IFC), “Micro, Small and 6. Kamalji Sahay, “About Time Insurers Unlocked Women Power,“ Medium Enterprises Finance Improving Access to Finance for The Financial Express, May 4, 2014. Women-owned Business in India,” (2014). Available at http:// 7. Shishir Sinha, “Govt announces details of new insurance, www.ifc.org/wps/wcm/connect/ pension schemes,” The Hindu Business Line.March 2, 2015. a17915804336f2c29b1dff384c61d9f7/Womenownedbusiness1. pdf?MOD=AJPERES 8. “Bajaj Allianz Promotion Women’s Careers,“ Allianz, Press Report, January 10, 2014. Accessible at https://www.allianz. 23. The World Bank, “World Development Indicators” Indicator: com/en/press/news/company/human_resources/news_2014- Rural Population (% of total population) (2014),“United 01-09.html/ Nations, World Urbanization Prospects, Accessed April 2015. 9. World Economic Forum, “The Global Gender Gap Report,” 24. Chandralekha Mukerji,”Budget 2015: Inexpensive health, Insight Report, (2008 and 2014). accident, pension and life insurance for all,” The Economic Times, February 28, 2015. 10. Aparajite Ray, “It’s houseful in old-age homes,” The Times of India, October 24, 2014. 25. Ibid. 11. Daniela Yu and Yamini Tandon, “India’s Big Problem: Nurturing 26. Teena Jaim, “Women emerging as star insurance agents,” Live Entrepreneurs,” Gallup, August 1, 2012. mint, September 9, 2009 12. Palanivelu, Dr. V.R. and M. Rehmath Jahan “Women 27. Yogini Joglekar,“Women Pulling Ahead of Men as Insurance Entrepreneurship in the Context of Gender Competitiveness, Agents,” DNAIndia, September 29, 2011. http://www.dnaindia. Opportunities and Hurdles“ International Conference on Arts, com/money/report-women-pulling-ahead-of-men-as- Economics and Management (ICAEM’14) March 22-23, 2014. insurance-agents-1592843 13. Vinesh “Role of Women Entrepreneurs in India,” Global Journal 28. Insurance Research Center, “India: Proportion of Women Life of Finance and Management, (2014). Accessed at http://www. Insurance Agents Rise,” (2011). http://www.irc.ac.ir/en/news/ ripublication.com/gjfm-spl/gjfmv6n5_14.pdf news.php?newsid=273 14. The International Finance Corporation (IFC), “Micro, Small and 29. Census of India, “Rural Urban Distribution of Population,” Medium Enterprises Finance Improving Access to Finance for (2011). Accessed at http://censusindia.gov.in/2011-prov-results/ Women-owned Business in India,” (2014). Available at http:// paper2/data_files/india/Rural_Urban_2011.pdf www.ifc.org/wps/wcm/connect/ 30. Unilever, “For Rojamma, Project Shakti means being able to a17915804336f2c29b1dff384c61d9f7/Womenownedbusiness1. educate her daughters,” February 28, 2005.Accessed athttp:// pdf?MOD=AJPERES www.unilever.com/Images/es_Project_Shakti_tcm13-387473_ 15. Kamalji Sahay, “About Time Insurers Unlocked Women Power,“ tcm244-409741.pdf The Financial Express, May 4, 2014. 31. World Bank, “Outstanding Loans in % of Adult Population,” 16. Only Insurance, “Life Insurance — Indian women have little or Accessed March 2015. no life insurance,” Accessed June 2015. http://www. 32. Sandra Lawson and Douglas B. Gilman, “The Power of the onlyinsurance.com/Life-Insurance/Indian-women-have-little- Purse: Gender Equality and Middle-Class Spending,” Goldman or-no-life-insurance.aspx Sachs Global Market Institute, (2009). 17. Yogini Joglekar, “Women pulling ahead of men as insurance 33. “Microinsurance that works for Women: Making Gender- agents,” September 29, 2011. http://www.dnaindia.com/ Sensitive Microinsurance Programs,” Women’s World Banking, money/report-women-pulling-ahead-of-men-as-insurance- Zurich Insurance Company, ILO Microinsurance Innovation agents-1592843 Facility and the Swiss Development Cooperation, (2009). 18. Manish Shirgaokar, “The Rapid Rise of Middle-Class Vehicle 34. Vinesh “Role of Women Entrepreneurs in India,” Global Journal Ownership in Mumbai,” Fall 2012. http://www.uctc.net/ of Finance and Management, (2014). Accessed at http://www. research/UCTC-DISS-2012-01.pdf ripublication.com/gjfm-spl/gjfmv6n5_14.pdf 101 Women in Indonesia expressed demand for health insurance add-on products which would help them with their household tasks, and help reduce their burden to care for their aging spouses 102 INDONESIA FIVE INSIGHTS 1. By 2030, the insurance 3. Cost, awareness, premium spend of women and lack of targeted clients in Indonesia is products are the biggest predicted to be $9 billion – constraints faced by women $14 billion, approximately in accessing insurance. “Women care about the protection of 10 to 16 times the estimated the family and steer the husband toward premium of $0.9 billion 4. Over 18 percent of loans taken out by women taking out life insurance.” spent by women in 2013. The women’s market in Indonesia are to cover health and — ACA Insurance Executive, Jakarta, Indonesia is expected to experience the emergency costs,1 and fastest growth rate out of only 1 percent2 of women the 10 emerging markets. currently personally pay for health insurance, reflecting 2. The average income of insufficient insurance women has doubled in coverage for healthcare. the last six years, making women growing influencers 5. Women in Indonesia of household finances. will need to plan for 18 years of retirement and will demand products to protect their health and assets in their old age. SETTING THE SCENE: THE BUSINESS CASE O verall, the Indonesian insurance market has shown tremendous growth over the last 10 years. The sector is poised to record further growth through a large and relatively untapped market of almost 250 million people and an expanding economy. By 2030, the insurance premium spend of women clients in Indonesia is estimated to be $9 billion – $14 billion, approximately 10 to 16 times the estimated premium of $0.9 billion spent by women in 2013. The projected growth rate in the women’s insurance market in Indonesia is the fastest of all the focus markets,3 reflecting the rapid growth expected in the insurance industry overall. The women’s health insurance market is expected to grow from $0.002 billion in 2013 to $0.016 billion – $0.025 billion by 2030. The women’s life insurance market is expected to grow from $0.7 billion in 2013, to $7.0 billion – $11.0 billion in 2030, while the non-life insurance market is expected to grow from $0.2 billion in 2013 to $2 – $3 billion. The rapid growth in the women’s insurance market can be partially attributed to the currently low representation of women as clients in the insurers’ portfolios. Interviews with several local insurance companies in Jakarta, Indonesia, revealed that women clients represent only between 8 percent-12 percent of total policyholders. Women make up a higher percentage of health insurance clients (25-50 percent), and less of life insurance clients (less than 10 percent). As women’s socioeconomic progress is reflected in their purchasing habits, it is expected that they will become a much bigger portion of insurers’ portfolios. 103 INDONESIA AT-A-GLANCE $14 B WHAT’S CAUSING OVERALL THIS GROWTH? WOMEN’S GROWING INSURANCE FROM Progress in tertiary education MARKET $9 B Increase in income 10-16x GROWTH $0.9 B Increase in life expectancy creating a need for life insurance and pension products, and a greater 2013 2030* demand for healthcare 5 more years of retirement as compared to men Declining birth rates entailing $11 B the need to rely on savings LIFE GROWING rather than children as INSURANCE safety net FROM Women see good opportunities $7 B 10-16x to start a firm in Indonesia Favorable environment for $0.7 B women owned businesses GROWTH 2013 2030* KEY SEGMENTS: HEALTH GROWING INSURANCE FROM Retirees 9-15x $0.025 B $0.002 B $0.016 B GROWTH 2013 2030* Low-Income Customers *The 2030 market size estimate is bounded by: a) Baseline Growth (lower boundary): Growth in the number of women customers and individual premium NON-LIFE GROWING spend per customer due to improvements in the women’s INSURANCE FROM socioeconomic factors b) Opportunistic Growth (upper $3 B boundary): In addition to socioeconomic improvements, 10-17x $2 B assume successful efforts in targeting more women to purchase insurance products and in upselling/cross-selling $0.2 B products to each woman GROWTH 2013 2030* 104 COUNTRY PROFILE: INDONESIA Due to the fragmented geographical landscape of Indonesia, women often lack access to insurance and rely on agents “to come to the village once in a while” OPPORTUNITY DRIVERS Opportunity Driver 1: Women Opportunity Driver 2: Women model of financial aid and physical are making tremendous face a bigger protection support to women as they grow older, progress in tertiary gap, which drives the savings, access to healthcare, and education and have more need for life, pension, and elderly assistance will become crucial than doubled their salary healthcare products to accommodate the aging population. A report by McKinsey found that, as Women’s life expectancy in Indonesia Opportunity Driver 3: clients move up in income bracket and has increased to reach on average 73 Women in Indonesia see it as spending, they are purchasing more years.6 The official retirement age for desirable to start a business discretionary items such as insurance.4 women is 55 years7 in Indonesia, which According to McKinsey, “that will means that they will need to plan for Nearly half (49 percent)10 of women mean an additional $1 trillion in annual 18 years of retirement, compared to see good opportunities to start a firm spending by the nation’s optimistic and their male counterparts, who have an in Indonesia but lack access to financial increasingly sophisticated consumers.” average retirement span of 13 years. resources or fear bankruptcy if their Within the last six years, women’s business fails, demonstrating clear enrollment in tertiary education This protection gap creates a need for demand for formal financial services. has doubled and so has women’s life insurance and pension products, income,5 increasing their capacity to increases the demand for better About 21 percent11 of the adult spend on products such as insurance healthcare, and puts additional population are established business for themselves and their family pressure on children to care for their owners, which is one of the highest members. However, the vast majority parents. Birth rates are declining, and rates in Southeast Asia compared to of women are still not aware of the have reached 2.2 children per family in neighboring countries at a similar benefits of insurance, underscoring 20158 against 5.6 children per family in economic development level. Of the the need for more targeted education 19709. This has significantly changed total number of small and medium on the benefits of insurance. the support structure for the elderly sized enterprises in Indonesia, 30 population: the younger population percent12 are owned by women. cannot rely on their children’s support as a safety net in the future. Without children to provide the traditional 105 COUNTRY PROFILE: INDONESIA WHY AREN’T MORE WOMEN IN INDONESIA BUYING INSURANCE TODAY? Currently, women in Indonesia risk on their lives. Frequent natural hospital. First views on the quality of face several challenges in obtaining disasters in Indonesia have resulted in the treatment and the government insurance, and general awareness many women becoming accustomed funding are rather skeptical;14 however, about insurance as a risk mitigation to the possibility of a tragedy. Despite many women would be willing to solution is low. In the future, these this, women often underestimate purchase complementary health cover. women may face a large protection how these events will affect their Women in Indonesia show high rates gap linked with aging, which they lives and assets. Women interviewed of death, from high blood pressure either underestimate or which, indicated that they might have heard and obesity,15 a problem which could they believe, current products do of insurance, but do not see the link potentially be addressed by access to not sufficiently address. Women between the risks they face and how better healthcare. Many women who entrepreneurs also struggle to insurance could help them maintain want better quality of care still rely understand the risks they are facing or improve their living standard. on their spouses, who often do not and how insurance could support see the need to purchase additional them in growing their business. Women need better healthcare health cover.16 Currently, however, products. The Indonesian government healthcare products in Indonesia are Many women are not aware of introduced a new national health restricted to hospital cash plans and potential risks and the concept of insurance program in early 2014 require upfront self-funding, which insurance. Market discussions with with the aim of covering the entire is often a challenge for women. insurers, insurance associations, and population.13 The service means that Women are often forced to take out women indicated that the biggest patients now have a choice as to loans for healthcare costs; over 18 barrier for women is their unawareness where they can access treatment, as percent of loans taken out by women and underestimation of the effect of long as they can afford to travel to the are to cover health and emergency costs.17 Only 1 percent18 of women currently personally pay for healthcare insurance, demonstrating the lack of insurance coverage for healthcare. Women entrepreneurs’ protection needs are not met. As previously stated, 49 percent of women in Indonesia see good opportunities to start their own company, as it gives them more flexibility in managing their household and care responsibilities. However, women entrepreneurs struggle to access funding19 to initiate and grow these businesses. Currently credit life cover is only available through microinsurance, and excludes women entrepreneurs with larger- scale businesses who are looking for collateral to get their loans approved. One of the biggest fears for women in starting a business is the risk of bankruptcy. Insurers could provide some form of bankruptcy protection which would further support women entrepreneurs and business owners overall. It would also help with access to financial resources and attract more women to the workforce. 106 COUNTRY PROFILE: INDONESIA Key Segments 1. RETIREES Retirees face an enormous protection gap. Women retirees in Indonesia are facing a higher protection gap due to their lower income, Key Characteristics: Focus is on and higher life expectancy rates, as well as the decline in birth rates. maintaining quality of life after As Indonesia’s population is aging, and with women’s life expectancy retirement, health conscious, exceeding that of men by at least five years,20 healthcare products will be willing to spend for best health needed to provide women with additional services to cater to their needs. benefits, may inherit assets from spouse, may be looking to In 2013, only 8 percent21 of the total population was covered by any sort downsize, but still own assets of formal pension, which leaves the large majority uncovered in their such as cars; pragmatic about old age. Statistics suggest that over 41 percent22 of the elderly (60 years spending, not technology savvy. and above) live in poverty. Additionally, with 18 years of retirement to plan for, women are under great pressure to make their savings last and protect their health for a long period of time. She may need assistance around the home. Women in Indonesia expressed demand for services tied to health insurance products. These services would help elderly women with household tasks that they may not be physically strong enough to conduct, and help reduce their burden to care for their aging spouses. These could include discounts on in-home care, or a special hotline for home emergencies 2. LOW-INCOME CUSTOMERS Many women cannot afford insurance. Women interviewed said that insurance, particularly life and health products, is not affordable Key Characteristics: Focus is on for them. Focus group discussions indicate that bundled life and health making sure the family’s basic packages for young women are currently available for around $25 needs are met, rely on family, per month, which represents 5 percent of a woman’s average salary. friends, and neighbors for Cover costs are likely to be higher for older women. For reference, life support and financial advice insurance packages in the United States are around $61 per month for (which may not always be younger women — however, this represents only 2 percent of a women’s accurate), may worry about average annual salary of $40,000.23 leaving debt to their children. Low-income women may lack access to purchase insurance. Due to the fragmented geographical landscape of Indonesia, women often lack access to insurance and rely on agents “to come to the village once in a while.” Nearly 50 percent of the population lives in rural areas and interviewed insurers indicated that fewer policies are sold to the rural population compared to people living in cities. In rural areas, this results in agents becoming the most dominant distribution channel. Life insurance agents in particular capture 50 percent24 of the insurance sales in these populations. According to discussions with Asosiasi Asurani Jiwa Indonesia in Jakarta, about 18 percent of sales are generated via direct selling. Based on discussions with the insurers, hardly any sales are generated from mobile or online purchasing as Indonesia’s IT infrastructure does not yet fully support such an offering. 107 COUNTRY PROFILE: INDONESIA HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN To tap into the women’s market, Insurers in Indonesia have started Insurers should consider engaging insurers need to establish education to engage hospital staff as part of new distribution partners such as campaigns, explore ways to reach campaigns to increase understanding telecommunication providers. Indonesia out to the majority of the population, about health risk. Hospital staff are is the fourth largest mobile market in develop products that address asked to speak to women about the world, showing enormous potential women’s needs in health and business, health risk — in particular, about for using mobile as a distribution and make products affordable. breast cancer — to reinforce the channel.25 Phones can be used to reach importance of health insurance. out to the rural women’s population, Targeted education campaigns to complementing an online offering increase awareness of risks that Marketing initiatives should help to the urban women’s population. women face. Insurers need to build women visualize the risks to which Insurers can consider a call back programs that enable women to better women are exposed to, as they are option as part of their client service understand the most common types of often not aware of these. In addition to to lower the clients’ cellphone costs. risks they face based on their lifestyle, clarifying and simplifying information and how insurance can mitigate on the coverage, insurers should help In Indonesia, 87 percent26 of women these risks. This will be particularly women understand the benefits of with Internet access indicated they important for those who have just having insurance, and the dangers would prefer to shop online and follow entered the work force, as insurers in foregoing insurance cover. social media recommendations. This can help these women manage their indicates that the online channel may income and financial needs early on. Explore innovative distribution be worth evaluating and potentially models via mobile channels to pursuing. Among Indonesia’s 40 million Programs that articulate the benefits reach out to the geographically female Internet users, 66 percent of insurance for their children, the fragmented women population. have bought items online for their household well-being (via health Insurers should review their distribution families, and 74 percent27 said they are protection), and their retirement models in order to reach out to the most influenced by friends in social needs will help put insurance into a geographically split population. media and community platforms. context that is relatable and relevant The majority of policies are sold via With rising Internet usage, online for many women to learn more about agents; mobile and online distribution insurance products are likely to offer the different products available. channels are underdeveloped. a potential opportunity for insurers to reach the women’s segment. Engage growing population of educated women as members of the salesforce. A higher number of educated women also leads to more women being eligible to join the Case Study: insurers’ salesforce and sell products to Leveraging the Arisan other women, which is a channel for insurers to further leverage. Women Insurers have developed a novel approach to educating the agents can help insurers expand and tap women client market by combining both doctors and the “Arisan” into rural areas. Working as an agent club — a popular type of social gathering that approximately 75 gives women the ability to work at percent of women in Indonesia participate in — as distribution their own pace while managing their channels. Working with doctors, midwives, and nurses, insurers family and gaining financial benefits organize events with the Arisan club members, where the medical (see Case Study: “AXA’s ‘Wanita Hebat’ professionals will help women visualize and understand health risks (Amazing Women) Program”). that they are susceptible to — such as breast cancer. Following In addition, engaging more female sales the presentation of health risks, the insurers will then show agents can help build trust in insurance participants what products are available to help them manage products. In rural areas, where these risks. Interviews with women in Indonesia indicate that this there may be less defined financial method is effective, as women trust medical authority figures. infrastructure, trust is critical for clients. 108 COUNTRY PROFILE: INDONESIA How to Meet the Needs of: 1. RETIREES insurers can evaluate the effectiveness of online and mobile distribution as they pursue it, Develop product add-on services that support and subsequently grow this channel. elderly women in their daily life. Women will need more and longer health support in the future. Insurers Microinsurance products currently available on the mar- should think about services to either add to the policies ket only focus on credit life and agricultural insurance. of retired women, or to include them in their children’s There are no products specific to women that either fo- policies to help them cope with their daily life. These cus on women’s retirement needs or meet the education services could include mobile nurses to check on them; funding needs of children. Insurers should explore ways to assistance with their grocery shopping; or additional address these needs through add-ons to existing products. medical services such as providing blood pressure readers. Consider innovative distribution and education channels. In the past, women in rural areas faced similar issues of accessibility in banking and created their own 2. LOW-INCOME CUSTOMERS community solution by gathering themselves in an Explore the microinsurance market and transition “arisan,” an association of women created to help them products to ensure affordability. As many women do gather socially and share the latest on fashion, jobs, not currently view insurance as an affordable product, and life, as well as to engage in peer-to-peer lending insurers need to review their pricing and consider the by taking turns in sharing a sum of money through development of a transition product as outlined in the contributions to a group fund.28 Arisans can be seen as study. Insurers should also identify their major cost an alternative to banking solutions in this type of rural drivers, as the agent distribution model is likely to be environment. The arisan solution also shows that women expensive. Offering more products online and via the can develop creative solutions when they lack access to mobile phone will help to lower distribution costs, as required products and services. For example, discussions commissions for agents are usually high. As online and with women revealed that they often use the money mobile channels may not be significantly developed at from an arisan to fund losses that could potentially have present, the focus will possibly continue to be offline been funded by insurance (see Case Study: “Leveraging channels, leveraging agents in the near future. However, the Arisan”). Case Study: AXA’s “Wanita Hebat” (Amazing Women) Program AXA Indonesia has pioneered a program to recruit are highly efficient. Overall, these promising women as agents in Indonesia. Data from certain results demonstrate that AXA Indonesia’s push product lines have shown that there is a correlation to increase gender diversity among its salesforce between growth of the women agent workforce will differentiate AXA from its competitors. and growth of the women customer base. AXA has closely monitored the results of the ongoing recruitment program since it began in October 2014, and results show an increase in the number of recruits and certification rates, indicating that the targeted messaging and marketing channels 109 COUNTRY PROFILE: INDONESIA Develop further bundled products • Direct payments of hospital expenses insurers can protect a certain level of that cater to women’s healthcare, credit, and increase the credit limit • Health check-ups depending retirement, and funding of their they cover based on performance of on a women’s age children’s education needs at the business. This will help women affordable prices. 80 percent • Disability benefits access the initial capital they need of insurers surveyed in Indonesia • Additional services for the elderly, to start their business, and use their confirmed that product design is such as home care services future earnings as collateral to build already an important aspect of through mobile nurses and their asset base and increase their their differentiation for women. In support for grocery shopping credit limit. In case of bankruptcy, their order to avoid a protection gap for loans would be insured. Anecdotal women in the future, insurers need Insurers should also collaborate evidence in interviews has shown that to expand the spectrum of holistic with the government to explore women are more likely than men to protection products to cover their ideas on combined funding, as this pay back loans, so women potentially health and retirement funding. Bundled will relieve the government from present a lower risk for insurers. products, while currently offered by a the sole responsibility of funding number of insurers, are currently very future payments to the elderly. Additional products might also be expensive for women. These products explored, such as coverage in case of Offer products that support women insolvency or business interruption as should also provide an opportunity entrepreneurs in receiving funding this is the biggest fear of women to receive advances from the policy for their business and provide a entrepreneurs. Insurers should think to fund their children’s education. safety net in case of bankruptcy. about how this fear (or risk) can be In addition to annuity payments, One potential way insurers can help mitigated. products could potentially include: women access credit is through offering protection for their credit based on future payback potential. For example, 110 COUNTRY PROFILE: INDONESIA Endnotes 1. The World Bank, “Global Findex Database 2014: Measuring 16. IRIN: Humanitarian News and Analysis, “Indonesia: Gender Financial Inclusion around the World; Indicator: Outstanding inequality endangers women’s health,” May 17, 2010. Accessible Loans in % of females, 15+,” World Bank Global Findex, Accessed at http://www.irinnews.org/report/89150/indonesia-gender- April 2015. inequality-endangers-women-s-health 2. The World Bank, “Global Findex Database 2014: Measuring 17. The World Bank, “Global Findex Database 2014: Measuring Financial Inclusion around the World; Indicator: personally paid Financial Inclusion around the World; Indicator: Outstanding for health insurance, female, 15+,” World Bank Global Findex, Loans in % of females, 15+,” World Bank Global Findex, Accessed Accessed April 2015. April 2015. 3. Focus Markets: Brazil, China, Colombia, India, Indonesia, Mexico, 18. The World Bank, “Global Findex Database 2014: Measuring Morocco, Nigeria, Thailand, and Turkey Financial Inclusion around the World; Indicator: personally paid for health insurance, female, 15+,” World Bank Global Findex, 4. Arief Budiman, Heang Chhor and Rohit Razdan, “Understanding Accessed April 2015. the Diversity of Indonesia’s Customers,” McKinsey Quarterly, April 2013. 19. IFC “Strengthening Access to Finance for Women-Owned SMEs in Developing Countries” October 2011. Accessible at http:// 5. World Economic Forum, “The Global Gender Gap Report,” www.ifc.org/wps/wcm/connect/ Insight Report, (2008 and 2014). a4774a004a3f66539f0f9f8969adcc27/G20_Women_Report. 6. Economist Intelligence Unit, “Country Forecast,” Economist pdf?MOD=AJPERES Intelligence Unit Database, accessed January 2015. 20. World Economic Forum, “The Global Gender Gap Report,” 7. Trading Economics, “Indonesia Retirement Age 2009-2015.“ Insight Report, (2008 and 2014). Accessed June 2015. Available at http://www.tradingeconomics. 21. Jan Priebe and Fiona Howell, “Old-Age Poverty in Indonesia: com/indonesia/retirement-age-men Empirical Evidence and Policy Options A Role for Social 8. United Nations Department of Economic and Social Affairs. Pensions” March 2014. “World Population Prospects.” Accessed June 2015. 22. Ibid. 9. Leilani Hastings, “Decreasing Indonesia’s fertility rate from 5.6 to 23. IFC “Strengthening Access to Finance for Women-Owned SMEs 2.6: Can it be reduced to 2.1?” Maternal Health Task Force. in Developing Countries” October 2011. Accessible at http:// February 28, 2014. www.ifc.org/wps/wcm/connect/ 10. Global Entrepreneurship Monitor. “Global Entrepreneurship a4774a004a3f66539f0f9f8969adcc27/G20_Women_Report. Monitor 2013 Indonesia Report.”(2013). pdf?MOD=AJPERES 11. Ibid 24. Trading Economics. “Rural Population in Indonesia.” Accessed 12. IFC “Strengthening Access to Finance for Women-Owned SMEs June 2015. Accessible at http://www.tradingeconomics.com/ in Developing Countries” October 2011. Accessible at http:// indonesia/rural-population-wb-data.html www.ifc.org/wps/wcm/connect/ 25. Redwing, “Indonesia’s Mobile Driven Telecoms Market,” (2014), a4774a004a3f66539f0f9f8969adcc27/G20_Women_Report. accessed from http://redwing-asia.com/market-data/ pdf?MOD=AJPERES market-data-telecoms/ 13. Novia D. Rulistia, “What’s at stake in a high-society ‘arisan’?” 26. “Indonesian Women’s Online Shopping Habits,” The Wall Street Jakarta Post. November 24, 2011. Accessible at http://www. Journal, November 29, 2014, accessed from http://blogs.wsj. thejakartapost.com/news/2011/11/24/what-s-stake-a-high- com/briefly/2014/11/29/indonesian-womens-online-shopping- society-arisan.html habits-the-numbers/ 14. Jack Hewson, “Indonesia’s innovative healthcare scheme,” 27. Ibid Aljazeera. January 16, 2014. Accessible at http://www.aljazeera. 28. Novia D. Rulistia, “What’s at stake in a high-society ‘arisan’?” com/indepth/features/2014/01/indonesia-innovative- Jakarta Post. November 24 2011. Accessible at http://www. healthcare-scheme-201411485331598453.html thejakartapost.com/news/2011/11/24/what-s-stake-a-high- 15. World Health Organization, “Indonesia: WHO statistical profile,” society-arisan.html Last updated January 2015. Accessed June 2015. 111 Women prefer investing in tangible assets and struggle to see the benefits of insurance 112 MEXICO FIVE INSIGHTS 1. The women’s retail 3. 25.7 percent of “Men think of their wives first, then their insurance market women in Mexico in Mexico has the are involved in children. Women tend to think of their potential to grow entrepreneurial children first.” to $26 billion – $40 activities, but billion by 2030, six to women entrepreneurs — Representative, Asociación Mexicana 10 times the estimated are currently not de Instituciones de Seguros (AMIS), $4 billion insurance specifically targeted as Mexico City, Mexico premium spend by insurance customers. women in 2013. 4. Mexican women 2. The rise of single may be willing to “The relationship between income and mothers — one in four spend as much insurance in the national market is a ‘U’ households in Mexico as 10 – 15 percent shape, where the lower and higher income is headed by a single of their salary on brackets recognize the need for insurance, mother1— and the rise healthcare protection while the middle income bracket perceive in the percentage of for themselves and the population living their families. they have the wealth to pay out of pocket in poverty point to for replacements.” an increased need for 5. Affluent women affordable protection. in Mexico expressed — Executive, Zurich Seguros, Mexico City, Mexico a strong interest in add-on services to insurance products. SETTING THE SCENE: THE BUSINESS CASE T he women’s retail insurance market size is projected to grow to $26 billion – $40 billion by 2030; approximately six to 10 times that of the estimated $4 billion insurance premium spend by women in 2013. Given the vast and growing protection gap for women, life insurance premium spend is expected to grow from $2.0 billion in 2013 to $11.7 billion – $18.1 billion by 2030, while non- life premium spend is expected to grow from $2.0 billion in 2013 to $13.6 billion – $20.9 billion in 2030. Health insurance is expected to grow from $77 million to $433 – $669 million. 113 MEXICO AT-A-GLANCE $40 B WHAT’S CAUSING OVERALL GROWING THIS GROWTH? WOMEN’S INSURANCE FROM Increase in labor force MARKET $26 B participation 6-10x Increase in income $4 B Increase in tertiary education GROWTH 2013 2030* Increase in financial literacy and awareness of insurance Increased health risks intensify the need to spend GROWING on protection LIFE INSURANCE FROM Willingness to purchase $18.1 B private healthcare products and critical illness products 6-9x GROWTH $2 B $11.7 B for themselves, their husbands and families Increasing number of 2013 2030* women entrepreneurs KEY SEGMENTS: HEALTH GROWING INSURANCE FROM 6-9x Women Entrepreneurs $669 M $77 M $433 M GROWTH 2013 2030* Working Mothers *The 2030 market size estimate is bounded by: NON-LIFE GROWING a) Baseline Growth (lower boundary): Growth in the number of women INSURANCE FROM customers and individual premium $20.9 B spend per customer due to improvements in the women’s 7-10x socioeconomic factors b) Opportunistic Growth (upper boundary): In addition to $13.6 B socioeconomic improvements, assume successful efforts in targeting $2 B more women to purchase insurance GROWTH products and in upselling/cross-selling products to each woman 2013 2030* 114 COUNTRY PROFILE: MEXICO Female agents are perceived to be good at educating and training clients on insurance benefits, and see their jobs as lasting through the entire insurance lifecycle OPPORTUNITY DRIVERS Opportunity Driver 1: Additionally, according to Visa’s protection stronger than ever. Focus Increases in labor force 2013 International Barometer of group discussions have indicated participation and income Women’s Financial Literacy study, that women are increasingly willing out of 27 countries surveyed, women to purchase private health plans and From 2008 to 2014, women’s in Mexico talk to their children critical illness products for themselves, participation in the labor force about money management issues their husbands, and their families. increased by 11 percent while women’s most often, indicating they place Currently, women spend about 7 income increased by 73 percent.2 a high level of importance on percent of their income on insurance, These social and demographic factors ensuring that future generations which indicates significant room for are a strong source of growth in the are financially savvy.4 As women growth6 in health and life insurance. number of women clients and the learn more about the importance amount they spend on insurance. In of using insurance for protection, Opportunity Driver 4: particular, the increase in labor force Opportunities for growth in the they will also be able to influence participation means that more women women’s entrepreneur market others in their household to invest will be enrolled in insurance plans, in insurance, both life and non-life. notably through their employers. In Mexico, 25.7 percent of the female adult population are involved in Opportunity Driver 3: Increased Opportunity Driver 2: entrepreneurship activities,7 but health risks intensify the Increase in tertiary education are hardly covered or targeted by need to spend on protection and financial literacy insurers. Women entrepreneurs face Between 2012 and 2014, more than constraints in accessing credit, and An increase in tertiary education six million Mexicans were diagnosed this can limit the growth of their enrollment is expected to favor with diabetes, causing Mexico to spend enterprises.8 This is a particular market the acknowledgment of formal more than $4 billion in 2012 alone to segment for insurers to target, as risks management mechanisms, manage diabetes-related problems.5 women entrepreneurs are likely to such as insurance.3 This issue and the rise of other diseases have a great need for risk protection. have made the need for healthcare 115 COUNTRY PROFILE: MEXICO WHY AREN’T MORE WOMEN IN MEXICO BUYING INSURANCE TODAY? Currently, women face several Women do not perceive the value travel to an insurance agency or bank. constraints in accessing for money of insurance and may Considering women are less mobile the insurance market: consider it expensive. Many see and rely more on public transportation, insurance as luxury that is only this is particularly time-consuming.12 Women are not aware of the affordable by the wealthy. This is benefits of insurance. Women reinforced by the fact that women Women do not trust insurers. This is are not aware of the range of earn, on average, half the income of partially due to a lack of understanding protection provided by insurance. men,10 and may not want to spend on of the policy terms and exclusions. This is particularly prevalent within what they consider “not a priority.” Women are often surprised when their the lower and middle income coverage is denied or when they do bracket, who are less likely to have In addition, women prefer investing not receive the full claims payment access to private insurance. in tangible assets11 and struggle they expected. In interviews with to see the tangible benefits of women clients, they commented that Furthermore, the compulsory status insurance, especially within the much of the detail is “hidden in the fine of insurance in Mexico is inconsistent middle class, where women have print” and is not clear to them even at a state level. For example, although recourse to informal protection when they seek clarification through third-party liability motor insurance systems, such as relying on loans additional questions. Women have is compulsory on all federal roads, it from family members or friends. also indicated that they would like is enforced inconsistently at the state more insight into the claims process, level, and only 30 percent of vehicles In addition to price, reaching insurance which is seen as an integral part of currently hold it.9 Because women points of sale might actually be costly their experience with insurers. Those are less likely than men to own the both in terms of money and time. who do not live up to their promises vehicle, they are less likely to purchase Women reported that outside of major are seen as untrustworthy and can and be aware of motor insurance. urban centers, it can be complicated to discourage women from returning. HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN To address these issues and tap into the these risks; how they can access Invest in microinsurance or full potential of the women’s market, insurance; and what the common other low-cost products through insurers will need to find solutions to limits or exclusions of policies are. This partnerships. A large percentage of increase awareness and build trust, will be particularly important for those Mexico’s population lives in poverty improving service while lowering the within the lower and developing middle (52.3 percent in 2012)14 and, based price of their policies. income bracket. on a 2014 study from Munich Re, approximately 66 percent of Mexico’s Targeted education campaigns Develop partnerships to increase population are potential microinsurance to increase trust and awareness visibility. Insurers need to create clients.15 This presents an opportunity among women. Insurers need to build partnerships outside traditional for insurers to provide microinsurance campaigns to educate women about distribution channels to increase their as these households are likely to be the benefits of insurance based on their visibility in the market and better vulnerable to external and internal lifestyle needs. Education can be done connect with women in their daily lives. shocks, such as natural disasters, through a variety of channels such as unemployment, and chronic diseases. television and retail stores, which are Creative partnerships as featured in the Insurers can create new products with integrated into women’s everyday Zurich and Avon case study prove to be partners such as reputable NGOs and life, and not necessarily only through successful in reaching out to informally governments to provide insurance to financial institutions or employers. and semi-formally employed women. low-income customers, while creating Content can focus on helping women strategic alliances with the federal Partnering with women’s associations understand the most common types government, which implements social can help to educate women about their of risks based on their lifestyle; how programs. Building strategic alliances risks and reach large groups of women insurance can be used to mitigate with private microfinance institutions at a single point. 116 COUNTRY PROFILE: MEXICO Key Segments 1. WOMEN ENTREPRENEURS Women entrepreneurs face increased exposure to risk due to personal circumstances. Mexican women entrepreneurs face Key Characteristics: Own her own additional risk of business interruption compared to men. Focus group micro-, small- or medium-sized discussions found that women are more likely than men to operate businesses, may be balancing their businesses from home, and hence are more likely to face business professional and personal interruptions due to their household duties. In addition, caretaking demands, may be married and duties may also take women away from income-generating activities. may have children. According to the World Bank Global Findex, 53 percent of women indicate it would be “not at all possible” or “not very possible” to come up with emergency funds, compared to 45 percent of men.13 Women entrepreneurs have insufficient access to credit. Inability to access credit creates a barrier to starting their businesses and limits financial options to grow and obtain insurance for their businesses. In fact, many women rely on their personal savings and contributions from their families for funding, which makes them particularly vulnerable to business interruption and/or failure.  ORKING MOTHERS 2. W Women look for tailored value-added services such as childcare, repair or replacement assistance, and expect health insurance to Key Characteristics: Focus is on be more integrated in their overall life. Market research indicated providing for her children and that women who purchase insurance want more wrap-around services her children’s future (finance, to help them manage their individual work-life demands, and value education); may be financially assistance services as much as they value the financial benefits of independent and want to insurance. As non-communicable diseases are on the rise, women protect her own assets. expect to be rewarded for staying healthy. Women expect private health insurance to be more integrated into their lives and critical illness For Middle Income: May be used products to reflect women-specific features. to relying on family and friends for help, but due to urbanization Women want to protect their assets and income independently of no longer has as strong informal their spouses and family members. Women interviewed in Mexico support network. raised concerns around protecting their income and assets throughout changes in their legal status, from marriage to divorce or widowhood. For Upper Income: Has ample Key drivers of this sentiment were societal customs that favor men as discretionary income to spend the sole property holder, and patrilineal lines of inheritance that can be on luxury financial products, valued above all others. In addition, the rise of single mothers means but may also prefer using less this population may have a smaller social network, have a much smaller risky options such as savings/ safety net through informal protection methods, and thus may find checking accounts. greater value in formal protection provided by insurers. “I’d rather spend some of my income now to make sure I have a [financial] backup in case something happens, rather than not have anything when it’s too late.” — Patricia, Young Professional, Mexico City, Mexico, 117 COUNTRY PROFILE: MEXICO How to Meet the Needs of: 1. WOMEN ENTREPRENEURS Offer add-on services based on lifestyle needs and make their lives easier. Insurers Form partnerships with banks to help women also have the opportunity to build relationships with access credit. One potential way insurers can help current women clients by offering them flexible service women access credit is through offering protection options such as child care services from a trusted for their credit based on future payback potential. For agency. Survey participants in Mexico said that insurers example, insurers protect a certain level of credit, and need to be more proactive in offering tailored products then increase the credit limit they protect based on and services based on the lifestyle needs of women. performance of the business. This helps women access For example, working mothers are looking for help to the initial capital they need to grow their business, and balance the needs of their household with their work, use their future earnings as collateral to build their while elderly women may need help with mobility asset base and increase their credit limit. Evidence from and health monitoring, such as a 24-hour heart-rate- microfinance has shown that women are more likely monitor service that can respond in the case of an than men to pay back loans and therefore are a better emergency. Women heads of household in other Latin risk for insurers to take on. American markets, such as Brazil, are also using mobile applications to manage their finances, a value-added Distribute through women’s entrepreneurship service that insurers can provide. associations. Providing insurance through women’s entrepreneurship associations in remote locations Health products should reflect what women can do enables insurers to access an entire network of to improve their health by offering discounts for gym customers, similar to affinity insurance schemes memberships, or if they take measures to lower their which provide insurance to a group of individuals weight to prevent diabetes and cardiovascular diseases. such as a company’s employees. Insurers will be able Critical illness coverage is seen as an important product; to provide group rates on life and health products however, not all products in the market cover gender- to the entrepreneurs, which are generally lower specific conditions. Insurers could make the product than individual rates. In addition, such partnerships much more applicable to women’s needs if this type of allow insurers to leverage the association’s network coverage were emphasized. and resources to educate its members about risk management. Offer products that support women in case of divorce and widowhood to help them maintain 2. WORKING MOTHERS their living standards. As women are likely to face financial difficulties in case of a divorce if the assets are Educate new mothers. Insurance companies can use not under her name, insurers should offer products that child-focused retailers, such as toy stores as distribution keep women from facing bankruptcy. A life insurance channels for education programs. These programs can product which pays out partially in case of a divorce focus on the benefits provided by insurance for children could support women to cover initial expenses and and their household well-being via health protection. include a rider for legal expenses to support them in This will help put insurance into a context that is case of divorce. As women cannot be certain that their relatable and relevant for women, and will enable them husband’s wealth will be transferred to them in the to learn more about the different products available. case that their husband passes away, insurers should help create ways to ensure certainty that women are beneficiaries. 118 COUNTRY PROFILE: MEXICO will complement microcredit with their premiums are being used to cover claims tracking more so than men, as it microinsurance. any potential future claims. reduces uncertainty and allows them to proactively plan for the outcome. Online Increase the number of women Enabling online claims tracking will tracking will also build women’s trust in distributors. Interview results with also be valuable for the women’s insurers, as they will be able to see what AXA and Willis in Mexico City indicate market. Market interviews with women insurers are doing with their claims and that women are perceived to be better customers show that they value online prevent them from misconceptions. at educating and training clients on the purpose, benefits, and types of insurance coverage, and are often considered more dependable and helpful when clients have claims. A Case Study: female agent often tends to see her job as lasting through the entire lifecycle Zurich and Avon of insurance, and not just up to the end Women are drawn to becoming independent agents because of the of the sale; thus they are more likely to flexibility the work allows. Most companies in Mexico, however, invest time explaining the full process do not offer benefits to their agents as they are not employees. To to clients. They consider themselves address this access gap, Zurich Seguros in Mexico has partnered as franchise owners and take pride in with Avon to provide health, medical, and accident benefits to Avon owning the client relationships. agents through an innovative incentive plan at no cost to Avon. Increase transparency through clear language and online claims tracking. After two years of the partnership, Zurich Seguros and Avon are Given the emphasis that women place excited to look for opportunities to expand their on understanding the details when partnership to reach more women in the market. As one deciding to purchase insurance, clearly Zurich Executive said: “In insurance, thinking outside stating what the exclusions are will of the box is important to reach a new customer help set expectations on what women base and grow penetration within the market.” will receive compensation for, and how Endnotes 1. Carrie Khan, “As Stigma Eases, Single Motherhood In Mexico Is 10. World Economic Forum, “The Global Gender Gap Report,” On The Rise,” NPR.org, May 13, 2013. Insight Report, (2014). 2. World Economic Forum, “The Global Gender Gap Report,” 11. Julia Paxton, “Subsistence Savings Strategies of Male- and Insight Report, (2008 and 2014). Female-Headed Households: Evidence from Mexico,” (2009). 3. OECD, “Women and Financial Literacy: OECD/INFE Evidence, 12. Center for Financial Inclusion at Accion International, “Mexico’s Survey and Policy Response,” Financial Literacy and Education Prospects for Full Financial Inclusion,” September 2009. Russia Trust Fund, (2013). Accessible at https://centerforfinancialinclusionblog.files. wordpress.com/2011/10/mexicos-prospects-for-full-financial- 4. Visa, “International Barometer of Women’s Financial Literacy,” inclusion-english.pdf (2013). 13. World Bank Development Indicators “Global Findex (Global 5. Patricia Rey Mallen, “Diabetes Affects Almost 50 Percent of Financial Inclusion Database)” Indicators: Coming up with Mexicans, Costs the Government $44B A Year,” International emergency funds: not at all possible, female (% age 15+) [w2], Business Times, February 2014. Coming up with emergency funds: not very possible, female (% 6. Euromonitor International, “World Consumer Income and age 15+) [w2], Coming up with emergency funds: not at all Expenditure Patterns 2014,” 13th edition, (2013). possible, male (% age 15+) [w2], Coming up with emergency 7. World Bank Group “Enterprise Surveys: Mexico”, (2010) funds: not very possible, male (% age 15+) [w2]. (2014). Accessed accessible at:http://www.enterprisesurveys.org/Data/ June 2015. ExploreTopics/gender#latin-america-caribbean 14. The World Bank, “World Development Indicators” Indicator: 8. Global Entrepreneurship Monitor, “Global Entrepreneurship Poverty headcount ratio at national poverty lines (% of Monitor 2012 Women’s Report,” (2013). population),” World Bank Poverty Working Group, Accessed April 2015. 9. International Monetary Fund, “Mexico: Detailed Assessment of Observance of International Association of Insurance 15. Munich Re Foundation, “10th International Microinsurance Supervisors (IAIS) Insurance Core Principles,” March 2012. Conference,” (2014). Accessible at: www. microinsuranceconference.org/2014 119 Women have expressed a need for add-on services to address their protection as well as their day-to-day life needs 120 MOROCCO FIVE INSIGHTS 1. The women’s retail 3. Based on company “Women are a vehicle for the promotion insurance market is interviews, women expected to grow represent 50 percent of insurance… [They] are protective and from two to four times of the directly could indeed influence greatly the uptake its current size, up employed agent of insurance.” to $50 million – $77 market and, in general, million by 2030. exhibit good sales skills. — Representative, Societe Centrale de Reassurance (SCR), Casablanca, Morocco 2. Between 2008 and 4. Women in Morocco 2014, women’s income value insurance as in Morocco almost an important source doubled, allowing more of funding for private “Credit protection is all that gets offered women to become healthcare, and are to me; it helps in case I cannot pay back my influencers of household even willing to pay loan, but covers nothing else.” finance decisions. for additional cover, on top of what their — Fatima, insurance client, Casablanca employers provide. 5. Women cooperatives in Morocco are relevant in the labor market and could represent a target segment for insurers to better provide insurance solutions. SETTING THE SCENE: THE BUSINESS CASE T he Moroccan insurance industry is one of the largest in the Arab region, and the second-largest in Africa, after South Africa.1 By 2030, the potential size of the women’s retail market is estimated to reach $50 million – $77 million in premium spend, approximately two to four times greater than the $20 million women spent on insurance in 2013. Across product lines, the women’s life insurance market is expected to grow from $7.5 million in 2013 to $16.2 million – $24.8 million by 2030. The non-life insurance market is expected to grow from $10.0 million in 2013 to $27.5 million – $42.1 million by 2030, while the health insurance market is expected to grow from $2.8 million in 2013 to $6.6 million – $10.2 million by 2030. Focus group discussions and interviews provided evidence that there is a clear need and willingness among women to pay for the benefits that insurance can provide. 121 MOROCCO AT-A-GLANCE OVERALL $77 M WHAT’S CAUSING WOMEN’S GROWING THIS GROWTH? INSURANCE FROM Increasing salary MARKET $50 M Increasing disposable income 2-4x $20 M Strained and inadequate public health system Willingness to pay for private GROWTH healthcare 2013 2030* Increasing demand for better health insurance as a result of increase in income Willingness to purchase life LIFE GROWING insurance to provide for INSURANCE children’s future FROM Women represent 50% of the $24.8 M directly employed insurance 2-3x $7.5 M $16.2 M workforce Women are effective insurance sales agents GROWTH 2013 2030* Mandatory insurance driving awareness and sector growth KEY SEGMENTS: HEALTH GROWING INSURANCE FROM 2-4x $10.2 M $6.6 M $2.8 M Salaried Women Without Children GROWTH 2013 2030* Working Mothers NON-LIFE GROWING INSURANCE FROM $42.1 M *The 2030 market size estimate is bounded by: a) Baseline Growth (lower boundary): Growth in the number of women 3-4x customers and individual premium $27.5 M spend per customer due to $10 M improvements in the women’s socioeconomic factors b) Opportunistic Growth (upper boundary): In addition to GROWTH 2013 2030* socioeconomic improvements, assume successful efforts in targeting more women to purchase insurance products and in upselling/cross-selling products to each woman 122 COUNTRY PROFILE: MOROCCO As women move from the lower to middle income brackets, spend on insurance increases, in particular for products related to protecting their families OPPORTUNITY DRIVERS Opportunity Driver 1: Opportunity Driver 2: Women their employers currently offer them.7 Women In Morocco today are will spend their higher Women in higher income brackets earning more, and spending incomes on health and life also indicated that life insurance is more of their disposable insurance in particular important to them to provide their income on insurance children with a sustainable future. Discussions with women in Morocco Women’s income has almost doubled indicate that private healthcare is Opportunity Driver 3: between 2008 – 2014.2 Survey their preferred choice, even though Anecdotal evidence suggests results and studies3 have indicated only 16 percent of the population is that women can be effective that women are more likely to be covered due to the high cost.4 Based insurance distributors, aware of formal methods to mitigate on interview results, it is expected that especially considering cultural risks and of the insurance benefits as women’s income in Morocco grows and religious practices, which provided by their employer. Focus further, so will the demand for better require women distributors group discussions show that, as health insurance. The public healthcare to sell to women clients women move from the lower to system is strained in capacity, public middle income brackets, spend on hospitals’ medical equipment varies, Women represent 50 percent of insurance increases, in particular and staff is scarce, which makes the directly employed insurance for products related to protecting it difficult to provide quality care.5 workforce, with a higher proportion their families. Moreover, financially Moreover, access to public healthcare of women below management literate women are also better is poor in rural areas, and the system level. Interviews with insurance positioned to be strong influencers is unable to manage the need for companies demonstrate that women of purchasing decisions made by critical conditions,6 with waiting are very effective as agents. their husbands. The influencing role room deaths alarmingly common. Low turnover among women of women should not be overlooked, Women in Morocco value insurance workers supports the perception in as they are mostly the ones who as an important source of funding for the industry that women are loyal identify household protection needs, private healthcare, and those with employees. Interview results show evaluate and select products, and the financial resources are willing to women are viewed as trustworthy, sometimes make the final purchase. pay for private care on top of what 123 COUNTRY PROFILE: MOROCCO organized, and more eager to take on WHY AREN’T MORE WOMEN IN MOROCCO responsibilities. Women have a wide sphere of influence, and are more likely BUYING INSURANCE TODAY? to educate their friends and families Currently, women face several in society between the low-income about financial products, and so can constraints in accessing bracket (microinsurance market) and help insurers increase financial literacy. insurance. These barriers need the middle class in terms of product The role of women in influencing their to be addressed in order to tap offerings. This gap is especially households, families, and friends can be into the potential opportunities prevalent for entrepreneurs who find leveraged to increase insurance growth for growth in this segment. commercial insurance products too uptake by the broader population. expensive, but may not be satisfied Women are dissatisfied with the by microinsurance offerings. Furthermore, in some mainly rural transparency of policies and the conservative areas, women cannot claims process. Women report Women entrepreneurs’ needs are make direct purchases of goods and that policy terms are too complex not addressed by current market services from men. Rather, their and confusing. They also have offerings. Products in the market do husbands or fathers lead interactions difficulties with the claims process not adequately address the needs of within their economic environment. and with payout amounts, all of which women in terms of minimizing the Expanding the women’s salesforce discourage them from purchasing risks of setting up a new venture. Focus could help reach out directly to insurance products. Women who have group discussions indicate that many populations where direct interaction bought insurance products report that women entrepreneurs are unaware with men is culturally not accepted. they sought clearer communication of the business risks to which they on claims payment time, and expect are exposed; this is especially true Opportunity Driver 4: their insurer to honor the timeline for women who run their businesses Mandatory insurance is driving and payment amount they have from their home, who are at both sector growth and population awareness, especially committed to. Survey results with professional and personal risk in the within the salaried force women clients indicate that speed of case of certain misfortunes such as fire. payment recovery is a “key influencer” Many entrepreneurs who are aware Compulsory insurance, such as third- in a woman’s choice of policies. of these multi-faceted risks feel that party motor liability, employee health Insurers who do not live up to their the current products are not offered insurance, and Contrat-Programme promises, either in the time or amount proactively by agents. Discussions (provides mandatory property, health, of payout, are seen as untrustworthy with women entrepreneurs revealed and natural catastrophe coverage),8 “thieves,” dissuading women from that they perceive commercial has also been a strong driver of returning or renewing their policies. insurance as too expensive. There growth as the government looks to are many women’s cooperatives expand the overall industry, with Women see insurance as too in Morocco, particularly in rural additional growth expected in the expensive. Interview results show areas. These cooperative structures future. Salaried women will receive that women are more price-sensitive combine women ventures in one health insurance via their employers than men regarding insurance single productive unit and have been and are more likely to recommend products. As 52.9 percent of Morocco’s flagged as not being appropriately the benefits of health insurance to population lives on less than $4 covered by insurers with customized their friends. Having different types per day,9 many women often view product offerings and pricing. of compulsory insurance will help insurance as a luxury. There is a gap women increase their awareness of risks and insurance benefits. “Buying from a women is easier as they can relate to my life circumstances and tell me about risks I face and I have never thought about before.” — Zainab, Head of Household, Casablanca, Morocco 124 COUNTRY PROFILE: MOROCCO Key Segments  ORKING MOTHERS 1. W Over 40 percent of women are not aware of insurance and do not see the benefits. Awareness is closely linked to purchasing Key Characteristics: Has children, insurance cover.10 Gender differences in awareness of insurance in may have spouse, likely to steer general can be partly attributed to demographic and socioeconomic household finances toward factors. The lower the education level and income bracket, the less family purchases and risk likely women are to be aware of financial products. Without a strong mitigating measures. understanding of insurance products, women will not be likely to steer household finances toward these products. Women are dissatisfied with their access to insurance and the difficulty of the purchasing process. Women who are aware of the benefits of insurance want a quick and efficient service, especially as they balance professional and household demands. Interview results indicated a strong preference for online channels for research and purchasing. Working mothers are especially in favor of online channels due to the convenience. Women in rural areas lack access to the salesforce and often have to “wait” for the agent to see them. Currently, however, insurers lack innovation on this domain. Based on interviews, online and direct channels account for only 4 percent of sales; as such, this avenue offers significant potential for growth. 2. SALARIED WOMEN Affluent women do not get offered tailored solutions. Women who WITHOUT CHILDREN can afford insurance expect products that address their specific needs, (UPPER INCOME) particularly health and life products. Apart from some stand-alone initiatives, there are no women-specific product features and marketing Key Characteristics: May have a approaches, and women do not feel the marketing is effective, or that it tertiary degree, may be familiar is aimed directly at them. with financial products but still lacks confidence in making the right decision, may be looking to grow and protect her substantial income. HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN To overcome these challenges, and should consider creating partnerships with FMSAR, an insurance association, to tap into the full potential of the with regulators to develop educational relevaled that it is a part of the women’s market, insurers will need to programs for women, particularly “Foundation for Financial Education” to find solutions to increase education, for recent tertiary graduates. This promote financial education in schools. offer tangible benefits, clarify the population is a growing demographic policy language and the claims segment and is more likely to have Simplify policy wording to enhance process, as well as lower the costs. financial independence when it enters understanding and to build trust. the labor force. Some organizations Clear information about exclusions Start insurance education early. are already educating the younger and coverage limits should be Because insurance awareness is so low generation; for example, interviews emphasized, as it is what women among women in Morocco, insurers focus on most when researching 125 COUNTRY PROFILE: MOROCCO and selecting a policy. Stating the to pay certain claims. This allows up the majority (60 percent) of exclusions upfront will help set insurers to proactively manage Morocco’s population. Women in the expectations regarding what women women’s expectations and reduces low-income segment indicated that will receive in compensation and unwelcome surprises that may result they would be interested in saving how their premiums are used to otherwise in a decrease in trust. for their children’s education via an cover any potential future claims. It is Regular communication between insurance product and would like to important for women to understand women clients and insurers during be able to access better healthcare. these possible outcomes so they can the claims process is key to building a proactively plan for different events. long-term relationship based on trust. A bridge product would support women’s journey into the emerging Increase transparency in the Leverage women sales agents to middle income class by slowly building claims process and follow through address needs of female clients. up to a full insurance cover through on payment promises. Market Survey participants in Morocco riders added on to the policy at various research shows that women value indicated a preference for a female stages of a woman client’s life cycle. online claims tracking more than salesforce. Insurers can leverage men, as it reduces uncertainty and these agents, as well as data, to Identify and develop products allows them to proactively plan understand the needs of women and that can encourage growth in for the outcome. Online tracking educate their entire salesforce on women’s entrepreneurship. will help to build women’s trust in techniques to sell directly to women. Women entrepreneurs can help grow insurers’ processes and integrity. Best practices in other markets which the overall economy. Developing can be leveraged in Morocco include new products and improving Beyond these considerations, integrity development of specific training communication about the ones and honesty are valued highly by the materials to help the salesforce that already exist can increase the women’s market. Insurers must also better service women clients. number of women starting their own follow through on their promises; businesses. A review of commercial they should, for example, document Offer more economical protection insurance pricing structures, for what they have communicated and/ and explore microinsurance example, selling bundled solutions or promised and notify the client opportunities. The low- and lower- rather than several independent immediately if they are not able middle income segments still make individual policies, should be explored to potentially drive down the price of commercial line products. Health and life insurance, in addition to the already available credit insurance, can help to free up more money to reinvest into the business. Insurers need to revise their communications to highlight how these types of insurance can impact entrepreneurial growth. Leverage the women’s employee base. Anecdotal evidence from market interviews has demonstrated that women in the salesforce are perceived as being more patient in explaining policy coverages and are more understanding toward the concerns of other female clients, and hence more likely to proactively address them. Insurers should make sure to integrate findings from women sales agents into product development and client sales training, and should ensure gender diversity throughout their insurance value chain. 126 COUNTRY PROFILE: MOROCCO How to Meet the Needs of: 1. WORKING MOTHERS 2. SALARIED WOMEN WITHOUT CHILDREN (UPPER INCOME) Targeted education campaigns to increase awareness among women. Insurers need to engage Turn client needs into product offerings. To capitalize in education programs that can support the increase on the opportunity that women represent, insurers need of awareness and the understanding of risks women to understand where women experience challenges in are exposed to, as well as explain the benefits of their daily lives and incorporate wrap-around services insurance. Programs on the benefits of insurance that address these pain points and make insurance more for their children (such as how life insurance will tangible. Women have expressed a need for add-on reduce the potential burden on their children), and services to address their end-to-end protection needs for household well-being (via health protection), will (for example, helping draft accident reports, providing help present insurance into a context that is relevant psychological counseling after an accident) as well as for women. This, in turn, will empower them to take their day-to-day life needs. Some survey respondents action in learning more about the product, influencing said that, ideally, a good insurance package for women the purchasing decision (by helping select the product), should combine traditional insurance products with and making the purchase themselves. assistance services. Providing such services helps women with more than just their long-term protection Develop products according to women’s needs and financial needs; it demonstrates that insurance and attract them through targeted marketing. protection also helps with day-to-day tasks and helps Women want insurance products that cater to their integrate the insurance brand into their everyday lives. needs. Health insurance should feature women- specific components such as pregnancy riders, and life insurance should offer flexible payment terms. Endnotes 1. KPMG. “Sector Report: Insurance in Africa, ” (2015)Accessible 6. Global Health Workfoce Alliance, “The Morocco Country Case at : https://www.kpmg.com/Africa/en/IssuesAndInsights/ Study: Positive Practice Environments,” 2010. Accessible at: Articles-Publications/General-Industries-Publications/ http://www.who.int/workforcealliance/knowledge/PPE_ Documents/Insurance%20in%20Africa%202015.pdf Morocco_CaseStudy.pdf 2. World Economic Forum, “The Global Gender Gap Report,” 7. DR Hotchkiss, et Al. “Household Health Expenditures in Insight Report, (2008 and 2014). Morocco: Implications for Health Care Reform,” Tulane University Medical Center School of Public Health. (1999) 3. The World Bank Group “Enhancing Financial Capability and Inclusion in Morocco: A Demand-Side Assessment” December 8. “New laws seen boosting Maghreb insurance sector,” Thomson 2014. Accessible at: http://responsiblefinance.worldbank.org/~/ Reuters: Zawya. August 11, 2014. Accessible at: https://www. media/GIAWB/FL/Documents/Publications/Enhancing- zawya.com/story/New_laws_seen_boosting_Maghreb_ Financial-Capability-and-Inclusion-in-Morocco-FINAL.pdf insurance_sector-ZAWYA20140811072442/ 4. Ruger, Jennifer Prah and Daniel Kress, “Health Financing and 9. The World Bank,“Poverty & Equity: Country Dashboard: Insurance Reform in Morocco” July 2007. Accessible at: http:// Morocco (2007),“ Accessible at http://povertydata.worldbank. www.ncbi.nlm.nih.gov/pmc/articles/PMC2898512/ org/poverty/country/MAR 5. Aida Alami,“Morocco’s Health Care System in Distress” New 10. The World Bank, “Enhancing Financial Capability and Inclusion York Times. March 27, 2013. Accessible at http://www.nytimes. in Morocco: A Demand -Side Assessment, ”(2014). com/2013/03/28/world/middleeast/fewer-than-30-percent- of-moroccans-have-health-insurance.html 127 Insurers should offer additional medical and life insurance protection as a bundled product to entrepreneurs, to support these women in growing their businesses 128 NIGERIA FIVE INSIGHTS 1. The insurance 3. Affordability is “I do understand that private healthcare premium spend of the key constraint women clients in to insurance uptake would improve my quality of life, however, Nigeria is predicted as over 60 percent of I do not have the money left at the end of to reach $5 billion – Nigeria’s population is the month to afford it. Insurers ask us to $8 billion by 2030, considered low-income, pay first and claim back — where should approximately nine to leaving room to grow the money come from?” 13 times the estimated the microinsurance premium of $0.6 billion market. — Lola, Insurance Client, Lagos, Nigeria spent by women in 2013. While not the largest 4. Women are seen opportunity out of the as successful sales focus markets,1 Nigeria agents, capable of “The way women approach their work, is the second fastest breaking down trust they are able to bring more organizational growing market. barriers. skills and trust.” 2. Women 5. Women are highly — Executive, AIICO Insurance, Lagos, Nigeria entrepreneurs in likely to suffer from Nigeria are a growing financial shocks after area of focus for their husbands die financial institutions, due to unfavorable but are not well served inheritance practices in by insurers. Nigeria — or in case of a divorce — resulting in high demand for insurance for their SETTING THE SCENE: THE BUSINESS CASE personal assets. T he insurance premium spend of women clients in Nigeria is predicted to reach $5 billion – $8 billion by 2030, approximately nine to 13 times the estimated premium of $0.6 billion spent by women in 2013. After Indonesia, Nigeria represents the second fastest growing women’s insurance opportunity out of the 10 focus markets, thanks to the rapid increase in income experienced by women.2 The biggest driver of growth is expected to come from non-life products. In 2013, the non-life product line was valued at $0.56 billion, which represents 80 percent of women’s total insurance premium spend. This segment’s willingness to spend on non-life products makes this a high-potential growth area for insurers. Women’s overall financial situation is expected to improve, as the rising middle class’ ability to grow their assets will require more non-life protection, while the compulsory liability insurance for entrepreneurs is another driver for growth. In 2030, the women’s non-life insurance market is projected to be $4.6 billion – $7.1 billion. The life insurance market is projected to grow from $76 million in 2013 to $621 million – $952 million by 2030, while health insurance is expected to grow from $0.2 million to $2 million – $3 million. 129 NIGERIA AT-A-GLANCE OVERALL $8 B WHAT’S CAUSING WOMEN’S GROWING THIS GROWTH? INSURANCE FROM Increase in salary and MARKET $5 B disposable income 9-13x Room for growth of the microinsurance market $0.6 B Need for better healthcare GROWTH 2013 2030* Private healthcare is the preferred choice for many women Women’s willingness LIFE to spend on private cover GROWING for themselves and INSURANCE FROM their children Room to create insurance 8-13x $952 M $621 M products catering to $76 M women entrepreneurs GROWTH 2013 2030* Women show better sales performance Women can act as advocates for insurers HEALTH KEY SEGMENTS: GROWING INSURANCE FROM 9-13x $0.2 M $3 M $2 M Women Entrepreneurs GROWTH 2013 2030* Low-Income Customers NON-LIFE $7.1 B GROWING *The 2030 market size estimate is INSURANCE FROM bounded by: a) Baseline Growth (lower boundary): $4.6 B Growth in the number of women customers and individual premium 8-13x spend per customer due to improvements in the women’s socioeconomic factors $0.56 B b) Opportunistic Growth (upper boundary): In addition to socioeconomic improvements, GROWTH 2013 2030* assume successful efforts in targeting more women to purchase insurance products and in upselling/cross-selling products to each woman 130 COUNTRY PROFILE: NIGERIA Women not only value private coverage for themselves but would also like to extend it to their children OPPORTUNITY DRIVERS Opportunity Driver 1: Women enable insurers to reach out to the years old in Nigeria is 117 per 1,000 today are earning more and majority of the population for whom children, one of the highest in the have more disposable income regular insurance products will not world.5 At the root of the situation is available to spend on insurance be affordable. There are currently the significant under-development no gender-specific microinsurance of the Nigerian healthcare system: While an increase in education is products available in the Nigerian inadequate infrastructure and not reflected in the overall formal market, indicating that the specific insufficient public funding have led workforce participation (which has needs of women may not currently to gaps in the supply of medicine decreased slightly over the last six be effectively addressed. as well as poor access to health years), it has led to higher incomes professionals. Women are particularly among already formally employed Opportunity Driver 3: Women affected by insufficient healthcare, women: the average salary for women will spend their higher incomes and market discussions have shown has tripled from 2008 – 2014.3 on health insurance for that they are more inclined to spend themselves and their children on private healthcare than men. Opportunity Driver 2: There is room to grow the women’s Discussions have also indicated that The combination of high infant microinsurance market many women not only value private mortality, illness, and death during coverage for themselves but would Despite the improvements in income childbirth significantly lowers life also like to extend it to their children. mentioned above, women remain at expectancy of women and creates Despite measures by the Nigerian higher risk than men of being in or a need for better healthcare. government to address the state of falling back into the lower income public health, private care will remain Adequate cover is important both to bracket, with over 60 percent of a preferred choice for many women. mothers and for their children, as the Nigeria’s population living below the mortality rate for children under five poverty line.4 Microinsurance will 131 COUNTRY PROFILE: NIGERIA Opportunity Driver 4: There WHY AREN’T MORE WOMEN IN NIGERIA is room to grow the women entrepreneurs’ market BUYING INSURANCE TODAY? A study on women entrepreneurs Currently, women face several Current products do not cater by IFC6 shows that the women obstacles in accessing insurance. to the needs of women. A review entrepreneurs’ market is often These barriers need to be addressed of the insurance products on the underestimated and overlooked. in order to tap into the opportunities Nigerian market shows a lack of Banks have already started to grow for growth represented by women. availability of health insurance the women’s market by simplifying with women-specific components The majority of women are not such as pregnancy riders or specific access to funding. However, despite aware of insurance and if they conditions in critical illness policies. providing compulsory insurance for are, they often mistrust insurers. business owners, insurers have not Awareness of products among women Local interviews indicate that health been able to demonstrate the value is low, in particular beyond compulsory insurance has the greatest need for of additional insurance to women insurance policies, which are applicable gender-specific requirements. In entrepreneurs. In particular, products to entrepreneurs and car owners.7 Nigeria, patients in the public health like health insurance for business This lack of awareness and lack of system often experience long waiting owners, life covers to secure loans, familiarity causes women to view lists for medication and a low quality and business continuity covers are not insurers as untrustworthy. Women of care. While women recognize the currently bundled into the compulsory interviewed indicated that they need for private care, currently only cover, which would help women to often felt the “small print” left them 0.2 percent of the female population manage and grow their own business. unsure and doubtful. Women also pays for private healthcare. Market perceived the insurance industry as discussions revealed that women are Opportunity Driver 5: Women show great strength in the corrupt, and not run with the best overall dissatisfied with the healthcare sales process and act as interests of the client in mind. service; those who have the means advocates for insurance seek medical consultation abroad to The role of religion in society influences receive better healthcare, and look Insurers stated that women have women’s decision to purchase to purchase some form of insurance a stronger and more sustainable insurance. In Nigeria, 50 percent of the with global coverage rather than customer base than men and show population identifies as Muslim, 40 one that would only cover Nigeria. better sales performances. Focus group percent as Christian, and 10 percent discussions also indicated that women observe indigenous religions;8 some Products may not protect women are more likely to work for an agency of the women interviewed remarked in the case of divorce or death of force than as brokers. that they believe that risks in their a spouse. In some places in Nigeria, lives are “in the hands of Allah” and customary law can prevent women in Women employed in the insurance are opposed to taking out insurance. Nigeria from inheriting their spouse’s industry stated that they give informal assets.9 In these cases, where women advice on the benefits of insurance to Women are dissatisfied because are not aware of differences between their family and friends, an advocacy conducting business with insurers constitutional inheritance law and effect that insurers can leverage to is difficult. Many women expressed customary laws, the spouse’s assets their advantage. the need to be able to better conduct are most likely to be passed on to research as well as purchase insurance the family, who will also receive online. “Being able to get sufficient payments from his life insurance if no information either offline or online, and beneficiaries are named in the policy. purchase cover online quickly would “Insurers are quick to collect support the sales process,” said Uloma, a head of household in Lagos. premium but are a hassle when it comes to pay the claim. You Additionally, women are dissatisfied never know if they pay or not with the transparency of their and if they pay, it is late.” cover and with the claims process. Though they see both as vital services — Teresa, Entrepreneur, provided by insurers, they are not Lagos, Nigeria sure how and when their claim will be paid out, and they believe they will not get value from the product. 132 COUNTRY PROFILE: NIGERIA Key Segments  OW-INCOME WOMEN 1. L The majority of women cannot afford insurance. Affordability is still CUSTOMERS one of the biggest barriers to insurance for women, as over 60 percent of the Nigerian population earns less than $1.25 per day. Key Characteristics: The focus is on making sure her and However, World Bank data on outstanding loans support the idea that her family’s basic needs are there is a market for financial investments in general, and in particular, met; she relies on family, for women. For example, 9.3 percent of women have outstanding loans friends, and neighbors for in health and emergencies and 4.9 percent in school fees. Despite low support and financial advice; insurance penetration, it is important for insurers to capture the low- and may worry about leaving income market in Nigeria, as they will be the emerging consumers. debt to her children. 2. WOMEN ENTREPRENEURS Women need to better understand the risks they face as entrepreneurs. In Nigeria, 36 percent of women are formal Key Characteristics: Owns her entrepreneurs, and women and men have roughly equal rates of own business, and potentially entrepreneurship.10 runs it from her home; may have employees to provide for; Although Nigeria’s entrepreneurs must purchase compulsory may be balancing professional professional liability insurance, in practice, insurers only provide the and personal demands; may be cover once the entrepreneur’s business has reached a certain size. married and may have children. There is also little awareness of other insurance products and how they could help meet specific needs related to protecting and growing entrepreneurs’ businesses. In particular, theft, damage, fire, and income protection (in the case of insolvency) are coverages which are attractive for business owners. Many women are still relying on informal insurance, calling on neighbors and family to help out either with time or with financial support as the need arises. Business interruption insurance can also help women entrepreneurs grow their businesses, and they indicated, for example, that the unpredictability of power cuts due to less developed infrastructure significantly increases their costs of conducting business. HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN To overcome these challenges awareness and understanding of the the coverage and the claims process. and tap into the potential of the risks to which they are exposed, as well women’s market, insurers will need as explain the benefits of insurance. Engage more women agents and to develop affordable and appropriate distributors to reach the women’s covers for the women’s segment, In addition to the lack of awareness, market. Another way insurers especially women entrepreneurs. there is a lack of trust, among can reach more women and build women, for insurers. Insurers need trust is through active engagement Target education campaigns to to build trust through implementing of women sales agents. Female increase awareness among women. standardized and transparent agents are perceived to have larger Insurers need to engage in education processes, in particular relating to the social networks and closer ties to programs that can increase women’s communication about the details of community, friends, and family. They 133 COUNTRY PROFILE: NIGERIA do not only sell financial products Currently in Nigeria, no scheme exists to their friends and family, but also to officially incentivize female em- “Women sales agents are provide them with financial advice — ployees to become advocates for better at building longer term in particular, on insurance products. insurance to their friends and families. relationships and building Female agents interviewed supported Referral schemes could be employed the idea that “women-to-women” to support the uptake of insurance trust.” selling is more successful, indicating among women and potentially en- — Executive, Ark Insurance Brokers, they are better able to discuss personal courage them to cover their families. Lagos, Nigeria family concerns and finance with other women. Working as an agent In addition to improving reach, wom- is also seen as quite desirable for en sales agents can help build trust women, due to the flexibility and and long-term client relationships as financial independence it offers. underlined by executives from both Ark How to Meet the Needs of: 1. LOW-INCOME WOMEN CUSTOMERS products can help increase the number of women starting and successfully growing their Explore the microinsurance market and women’s own business. product needs to cater for lower-income market. Women play a growing role as decision makers within Train agents to recognize and market to the their households and should therefore be a natural needs of women entrepreneurs. Agents are not segment to target for microinsurance. trained to offer a holistic approach to cover all of the entrepreneurs’ needs. Insurers need to develop Currently, microinsurance covers are mainly addressed training and supportive marketing material on the to men, as they tend to be the ones taking out a loan, insurance covers that are available, beyond those that for which they need a credit life cover. However, the are mandatory for entrepreneurs, and how they affect credit life cover will only ensure the payoff of the loan their business. Marketing materials should include and will not cover any further expenses associated with an explanation of risks that entrepreneurs face and the death of the husband. Therefore, insurers should how these risks can be mitigated. This can include explore possibilities to offer microinsurance products a demonstration on how health and life insurance, that extend beyond credit life and need to think of on top of the already available credit and liability innovative ways to reach out to the women population insurance, can help to free up money to reinvest into outside the cooperation with MFIs. the business. Women are particularly vulnerable to health issues Develop products that help cover business and tend to delay seeing a doctor for cost reasons. interruption. An additional range of products could Pregnancy and maternity related riders are of particular be explored, such as coverage in case of insolvency importance. Eventually, individual coverage can grow or business interruption; market discussions showed to family coverage. For example, LAPO, one of the top that this is the biggest fear of women entrepreneurs. structured and managed microinsurance facilities, Insurers should think about how this fear (or risk) can recently added coverage for C-sections within its be addressed. policies. The operation was deemed viable, with a claims ratio for this product at approximately 40 percent.11 Address women entrepreneurs’ needs beyond commercial lines. Women entrepreneurs are 2. WOMEN ENTREPRENEURS vulnerable to personal shocks from illness or disability. Insurers should capture these risks by offering Identify and develop products that can help to additional medical and life insurance protection as a grow women’s businesses. Women entrepreneurs bundled product to entrepreneurs, to support these can help to grow the overall economy. Developing women in growing their business. products or improving communication about existing 134 COUNTRY PROFILE: NIGERIA Insurance Brokers and AIICO insurance. Explore ways to protect women options, find price quotes, and review Finally, discussions with insurers also independently of their spouse. additional services or claims procedures. indicate that women can be more suc- Women may be excluded as cessful in converting leads into clients. beneficiaries of their spouse’s life Women surveyed indicated they insurance if it is not clearly stipulated would prefer an online mechanism Develop products and services that that they should be the beneficiaries. to be able to track the status of their address women’s needs. Women in Insurers should explore how they claim to understand when to expect the middle and upper income brackets can ensure that the woman is named the payout as well as the amount. tend to be covered under group risk as a beneficiary at inception or if They want to be able to anticipate policies provided by their employ- the woman can take out a policy any issues and to have information er. This results in greater awareness on her spouse’s life so that a payout on coverage details that they can of insurance benefits and, according is guaranteed. Sometimes payouts refer to in case of questions. to focus group discussions, greater are not possible or are postponed demand for further add-on covers because the woman does not have from their employer, in particular a bank account. Insurers should for health and critical illness. Insur- work closely with banks to combine ers should consider building stronger complementary products such as life “When it comes to life offerings related to employee benefits. cover and personal bank accounts. insurance, women are more successful at turning leads Focus group discussions revealed Improve the ease of conducting that some women would appreciate into clients. In the car/motor business through online channels. additional services that include regular Women with Internet access said that space, female brokers are more health check-ups, particularly for cer- being able to purchase insurance online successful at managing long vical and breast cancer so as to enable would save them time and would make term clients.” early detection of illnesses. Insurers them more willing to buy insurance. therefore need to explore how to Online services would improve access — Executive, AXA Mansard, Lagos, incorporate women-specific addition- to information to make an informed Nigeria al services into healthcare products; decision or influence the husband’s for example, free check-ups would decision. Engaging women online can increase women’s satisfaction and also help them explore different coverage enable early detection of illnesses. Endnotes 1. Ten Markets: Brazil, China, Colombia, India, Indonesia, Nigeria, 7. According to the Insurance Consumers Association of Nigeria, Mexico, Morocco, Thailand, and Turkey Compulsory Insurance in Nigeria includes: Builders Liability, Occupiers Liability, Employers Liability, Healthcare Professional 2. World Economic Forum, “The Global Gender Gap Report,” Indemnity and Motor 3rd Party Liability Insight Report, (2008 and 2014) 8. Central Intelligence Agency, “The World Factbook: Nigeria,” 3. Ibid Accessed June 2015. 4. The World Bank, “World Development Indicators” Indicator: 9. Rose Nwaebuni, “Nigeria: A difficult place to be a widow,” Poverty headcount ratio at national poverty lines (% of November 27 2014. The Africa Report. Accessed at http://www. population),” World Bank Poverty Working Group, Accessed theafricareport.com/West-Africa/nigeria-a-difficult-place-to- April 2015. be-a-widow.html 5. The World Bank, “World Development Indicators” Indicator: 10. Global Entrepreneurship Monitor. “Global Entrepreneurship Mortality rate, under-5 (per 1,000 live births),” UN inter-agency Monitor 2012 Women’s Report.” (2013). Group for Child Mortality Estimation, Accessed April 2015. 11. Denise Dias, Denis Garand, and Donna Swiderek, ‘Towards 6. The International Finance Corporation, “Banking on Women in Inclusive Insurance In Nigeria” Making Finance Work for Africa, Business: Access Bank, Nigeria,” January 2008. Accessed at GIZ, and BMZ, June 2013. http://www.ifc.org/wps/wcm/connect /06d00080488553aeaffcff6a6515bb18/CaseStudy_Nigeria_D5. pdf?MOD=AJPERES&CACHEID= 06d00080488553aeaffcff6a6515bb18 135 Women want products and services that are straightforward and won’t add to their list of chores 136 THAILAND FIVE INSIGHTS 1. By 2030, the 4. Women already “I have many different customer loyalty insurance premium dominate insurers’ spend of women clients portfolios for private cards and use reward programs, but my in Thailand is predicted medical insurance, insurance does not offer anything.” to be $5 billion – $8 with one in five1 women billion, approximately in Thailand personally — May, Insurance Client, Bangkok, Thailand five to eight times paying for their health the estimated premium insurance, despite of $1.0 billion spent the public system by women in 2013. covering 99.5 percent2 of the population. 2. Decreasing fertility rates and increasing 5. Thai women spend life expectancy have about 3 percent of their led to a dramatic aging income on insurance; of the Thai population. however, market Women have an discussions show that average of 17 years of women who are already retirement to plan for, aware of the benefits of and fewer dependents insurance, particularly to support them. of life and health, are willing to spend 10- 3. Women in Thailand 15 percent of their account for the majority income on insurance, of the population indicating a large and 46 percent of the growth opportunity. working population. Compared to women in other focus countries, they are more likely to make financial decisions independently of their spouses. SETTING THE SCENE: THE BUSINESS CASE T he Thai insurance market can be characterized as being in a state of steady growth. By 2030, the insurance premium spend of women clients in Thailand is predicted to be $5 billion – $8 billion or approximately five to eight times the estimated premium of $1 billion spent by women in 2013. A similar growth rate is expected across all product lines; the women’s life insurance market is expected to grow from $0.69 billion in 2013 to $3.6 billion – $5.4 billion by 2030; the women’s non- life market is expected to grow from $0.19 billion to $1.1 billion – $1.6 billion; and the women’s health market is expected to grow from $0.1 billion to $0.52 billion – $0.81 billion. 137 THAILAND AT-A-GLANCE $8 B WHAT’S CAUSING OVERALL GROWING THIS GROWTH? WOMEN’S INSURANCE FROM Women outnumber men in MARKET $5 B tertiary education Strong participation in 5-8x workforce $1 B Increasing income Significant economic and GROWTH social power 2013 2030* Women in Thailand are key decision makers regarding financial products for their households Increasing life expectancy LIFE GROWING $5.4 B causing bigger protection gap INSURANCE FROM Comfort about insurance among middle class $3.6 B 5-8x Decreasing birth rates causing bigger protection gap $0.69 B Willingness to spend on health insurance for improved GROWTH 2013 2030* services Favorable business environment Growing number of women entrepreneurs HEALTH GROWING KEY SEGMENTS: INSURANCE FROM 5-8x $0.81 B $0.52 B $0.1 B GROWTH 2013 2030* Women Entrepreneurs Retirees NON-LIFE GROWING INSURANCE FROM *The 2030 market size estimate is bounded by: a) Baseline Growth (lower boundary): $1.6 B Growth in the number of women 6-8x customers and individual premium $1.1 B spend per customer due to improvements in the women’s socioeconomic factors $0.19 B b) Opportunistic Growth (upper boundary): In addition to GROWTH 2013 2030* socioeconomic improvements, assume successful efforts in targeting more women to purchase insurance products and in upselling/cross-selling products to each woman 138 COUNTRY PROFILE: THAILAND OPPORTUNITY DRIVERS Opportunity Driver 1: Women for insurers to engage with women by Opportunity Driver 4: outnumber men in tertiary helping with their retirement planning. Favorable business education, show strong Women (like men) are only eligible for environment supports the participation in the workforce, retirement payments if they have paid growth of women’s business and benefit from higher income into the system for at least 15 years.7 Thailand’s women entrepreneurs are Women account for 51 percent of major drivers of the economy; with The aging population in Thailand Thailand’s population and about 46 annual growth rates of 2.25 percent, creates a need for women to percent of the working population they contribute nearly 40 percent of privately invest into pension or life (approximately 64 percent3 of Thailand’s GDP.10 Discussions with local insurance to guarantee financial working-age women in Thailand women entrepreneurs indicated that resources for the future. are employed).4 Nearly 60 percent5 they are not fully aware of the risks of the eligible women population Opportunity Driver 3: they face as entrepreneurs and how are enrolled in tertiary education. An established level of additional insurance protection, in Women are an integral component comfort with insurance and addition to liability cover, could support of the society and have significant a growing middle class them in growing their businesses. economic and social power. In Thailand, 22.6 percent8 of women For commercial lines, no gender- Market interviews have shown personally pay for their health specific products exist to support that the majority of women in insurance, despite the public system female entrepreneurs. However, Thailand are key decision makers covering 99.5 percent9 of the unlike developed markets, there regarding financial products for population. Some gender-specific are very few compulsory insurance their households. Their power is health products are already available products for entrepreneurs. fueled by women attaining higher on the Thai healthcare market, Compulsory insurance only exists levels of education than men, and an including components such as for gas stations and businesses that increasing income, and thus a better pregnancy covers or women-specific pose a risk to the environment. overall economic position in society. scans. Private medical care is seen as a luxury product, but women in When conducting business, many Opportunity Driver 2: the emerging middle income bracket women look to banks as their Women face a bigger show a willingness to spend on health immediate partners as their main protection gap than men insurance if it gives them access to concern is to get sufficient funding. due to higher life expectancy Funding requirements include start- better treatment, faster care, and and decreasing birth rates up expenses, expansion funding, or a more sophisticated medical facilities. loan as a result of a risk induced loss. On average, Thai women outlive men Insurers have an opportunity to become by six years. The rise in life expectancy, the security fallback option for business which is at 77 years for Thai women, owners who are not currently insured. is not supported by a higher age of retirement, which remains at 60 for both men and women. This means that “My bank provides me with women have to plan for an average all these discounts to food of 17 years of retirement. Moreover, fertility rates decreased from 5.6 in vendors, so every time I go 1970 to 1.4 in 20126 and continue to purchase something from gradually decline. This means women there, I am reminded of why have fewer children to support them as I stay with the bank. I wish they age. Both of these trends lead to insurance companies would a protection gap, which is an opening do the same — to remind me why I should stay with them.” — June, Working Professional, Bangkok, Thailand 139 COUNTRY PROFILE: THAILAND WHY AREN’T MORE WOMEN IN THAILAND BUYING INSURANCE TODAY? Currently, women face several Women view the claims processes documents via an online portal. constraints in accessing insurance as burdensome, and this deters Updating personal and beneficiary products as the awareness of insurance them from insurance purchases. information is difficult. Many women as a risk mitigation solution is low. In Women in Thailand often return to view the process of changing this general, women are underestimating work after they have a child, which information as too time consuming, their needs for retirement planning can compromise their free time. They and have indicated that this is one and are dissatisfied with the want products and services that are of the key reasons why they change client experience, while women straightforward and won’t add to their their insurers. Interestingly, even entrepreneurs struggle to understand list of chores. Women in focus group when functionality is improved and the risks they are facing and how discussions stated that they find the purchasing functions are enabled insurance could support them in policy documentation too long and by websites, women may still opt growing their businesses. complex. In particular, exclusions for additional in-person support. are not stated in an obvious manner, An interview with AIG in Thailand While tailored products are available and claims processes are seen as found that even though women may based on women’s needs, many burdensome and long. “I have taken out purchase online, they will still call in women lack awareness about the health and life insurance. The policies are to discuss the product in more detail risks they face and how insurance really long and I have to admit I did not before buying insurance. could help mitigate them. Market even read it. I know that the insurer has a discussions with women, insurers, and big name which gives me enough comfort,” Insurers have not recognized the Office of Insurance Commission Tangmo, a working professional from women’s desire to communicate (OIC) have revealed that, for women Bangkok, said. with their insurers. Women in Thailand, the main barrier to taking surveyed indicated interest in out insurance is awareness. While Women’s online activity is regular communication and building women know that, in the event of a increasing across different areas a relationship with a commercial tragedy, they face various risks, they of their lives but not for insurance insurance organization. The banking lack awareness of security and cover purchases. In Thailand, aggregator industry has realized that women like options that insurance can provide. In sites such as GluayGluay.com are more holistic services and offer female- particular, the underestimation of their growing in popularity due to ease specific credit cards which come with own life expectancy and the need for of price comparison.11 But many additional incentives, such as movie pension and life insurance products women are frustrated by the lack of days or discounts for specific shops.12 exposes women to a high risk of functionalities of insurers’ websites. In There is an opportunity for the poverty when they retire. particular, the policy data and claims insurance industry to consider processing are not satisfying. It is not innovative approaches to embed Current insurance products do possible to receive pre-populated insurance in women’s lifestyle. not target women’s lifestyle needs. Women are dissatisfied with the services offered by insurers to accommodate their lifestyle needs. Services such as roadside assistance HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS are already provided by motor insurers, TO BETTER PROTECT WOMEN but the services for other products, such as life or homeowners, do not To tap into the women’s market, offerings, and has started to meet their expectations. Additional insurers need to establish education work closely with the Ministry of service offerings will become campaigns and develop ways to Education to start teaching children particularly important for an aging make insurance more accessible at school about the importance women’s population, in particular to the woman consumer. of insurance from an early age. to support women who will live by Targeted education campaigns Insurers in Thailand are involved in themselves without family support. to increase awareness of risks various initiatives to raise awareness that women face. The insurance and offer road-safety trainings at industry recognizes the current driving schools, using this new driver low levels of awareness that many base to educate parents about women have regarding insurance products such as personal accident 140 COUNTRY PROFILE: THAILAND Key Segments 1. RETIREES Pension and retirement planning are not sufficient to prevent poverty in the future. Market discussions with Thai women revealed Key Characteristics: Focus is on that they are not confident about planning their retirement. If they are maintaining quality of life after aware of their need to plan for retirement, they often indicated that retirement, health conscious, the products are very complex and that they would like to see more willing to spend for best health information on the investment of their funds. Pension products will be in benefits, may inherit assets great demand in the future. from spouse, may be looking to downsize, but still own assets Given Thailand’s aging population, there will be an additional need such as cars; pragmatic about for services associated with life or health insurance, such as caretaker spending, not technology savvy. services that visit the elderly at home or do grocery shopping for them if their children work or live further away. Women demand wrap-around services for themselves and aging spouses. Women’s retirement needs will go beyond payments by insurers, and they will require additional support to comprehensively plan for their aging and related healthcare needs. These types of services are particularly valuable for elderly women, as they usually take on more of the household tasks, but may not be physically strong enough to continue managing the home. Products that offer tied services to help both elderly women and men living independently will reduce elderly women’s burden of care for their spouses 2. WOMEN ENTREPRENEURS Women entrepreneurs lack understanding of the risks they face and current products to provide for their needs. As earlier stated, Key Characteristics: Owns her women entrepreneurs play a critical role in Thailand’s economy; own business, may be balancing however, they have very little understanding of the risks they face. professional and personal Insurance could be a great mitigator if positioned and explained properly. demands, may be married, and It should be noted that currently the only required insurance for business may have children. are the insurance policies that address the effects of business ventures that could damage the environment through exposure to chemicals, opening great opportunities for the much needed products. Women entrepreneurs need access to funding and risk mitigation options for their business ventures. One of the key issues for women entrepreneurs in Thailand is access to sufficient funding, and the fear of running an unprofitable business, which is not directly addressed by any insurance products currently available in the market. 141 COUNTRY PROFILE: THAILAND and life insurance, as well as advertise often a joint task by the insurers and understanding of what is included and products for education funding. regulators. Awareness on maintaining excluded in the policy, combined with Insurers believe that mothers are a healthier lifestyle (to reduce the less technical wording, will increase more open to discussing the value rate of diabetes and cancer) and women’s understanding of what is of insurance once they have a better the benefits of health insurance are covered and avoid disappointment understanding of the risks their other areas that are important to when a claim occurs, ultimately children face. However, insurers highlight, as Thailand has high levels increasing trust in insurance. indicated that this practice does not of obesity, with over 40 percent of extend to the whole country and is the population being overweight or For mothers working outside currently available only in bigger cities. obese.13 Insurance companies should the home, develop services that consider combining information support women in their busy daily Insurers can also support the on health insurance products lives. Women appreciate services government and the OIC to increase with health education programs offered by the motor industry and awareness outside the school provided by the government. health insurers; however, other curriculum by further developing products lack service components and educational campaigns to reach Ensure that policies are short and often only offer payouts as an option. more members of the population. clear. Policy documents should be Insurers should consider services For example, in other developed easy to understand and shorter than to replace goods or sending skilled markets, road-safety campaigns are current versions. Having a decent personnel directly to repair household How to Meet the Needs of: 1. RETIREES 2. WOMEN ENTREPRENEURS Create education campaigns for pension products. Understand and point out the risks women Awareness of pension products, such as annuities, face as entrepreneurs and envelop products to needs to be greater, as women might otherwise end up protect against them. Women indicated that their in poverty when they reach retirement age. This means biggest fear is starting a business and running into that the industry, regulators, and government need to financial difficulties, or even being unable to secure join forces to increase public awareness. startup funds. Credit life insurance, which already exists in Thailand, is not always seen as collateral to Develop retirement offerings that reflect holistic secure funding, as many women are not aware of the needs and services beyond annuity payments. existence of the product. In addition to enhancing Retirement planning is of utmost importance for communications about the value of credit life cover, the aging women population. Insurers need to find insurers should consider developing a product that ways to begin educating potential consumers about protects women from bankruptcy. retiring early due to long annuity payout periods with a high associated longevity risk. This communication Distribute through women’s entrepreneurship should focus on the risks that occur if women do not associations. Partnerships with women’s sufficiently fund their retirement when they are young. entrepreneurship associations enable insurers to access an entire network of clients, similar to affinity insurance Given the decrease in birth rates, women in particular schemes. Insurers will be able to provide group rates on should expect less funding from their children in the life and health products to the entrepreneurs that are future and a decrease in the ability of their children to generally lower than individual rates due to spreading take care of them on a daily basis as they age. of the risk pool. In addition, partnership with an association allows insurers to leverage the association’s Insurers should investigate how additional services for the network and resources to educate its members about elderly such as pension products can enhance the tan- risk management. gibility of the pension product. Additional services could include caretaker services such as grocery shopping, or regular mobile nurse visits to check on their well-being. 142 COUNTRY PROFILE: THAILAND items such as air conditioning life insurance and have to submit credit card companies and banks, units or washing machines. duplicative information to the insurer. as it increases their touch points. Insurers should consider reward Attract women and strengthen Also, despite the online trend, many opportunities such as discounts on loyalty through stronger online women would still like to have the gym memberships or a diet tracking presence, especially for the higher option to talk to an agent on the app for lowering health risks in income bracket and younger phone (as part of the sales support) order to enhance communication segment. On average, women to confirm information and answer with their women consumers. expect add-on services, especially any additional questions. Leveraging functionalities for policy administration women agents would be particularly and claims management. Claims valuable for the industry as women are forms are usually available online, perceived to be better at explaining but need to be printed, filled in insurance products in Thailand and manually, and then scanned in for are preferred by women clients. “Insurers only pay the time submission. Many younger women They are seen as more patient and value of my broken items complain that they need to look detailed when answering questions. but then it is upon me to buy up and fill in too many data fields, which could be pre-populated if a For higher income women, use a replacement and arrange portal would hold their data. Women reward programs as a method to delivery.” indicated that they are particularly improve communication. Many dissatisfied with cases where they women appreciate reward programs — Bat, Working Mother, are the beneficiary on their husband’s as additional services offered by Bangkok Thailand Endnotes 1. The World Bank, “Global Findex Database 2014: Measuring 8. The World Bank, “Global Findex Database 2014: Measuring Financial Inclusion around the World; Indicator: personally paid Financial Inclusion around the World; Indicator: personally paid for health insurance, female, 15+,” World Bank Global Findex, for health insurance, female, 15+,” World Bank Global Findex, Accessed April 2015. Accessed April 2015. 2. The World Bank “Thailand: Sustaining Health Protection for All” 9. The World Bank “Thailand: Sustaining Health Protection for All” August 20, 2012. Accessible at: http://www.worldbank.org/en/ August 20, 2012. Accessible at: http://www.worldbank.org/en/ news/feature/2012/08/20/thailand-sustaining-health- news/feature/2012/08/20/thailand-sustaining-health- protection-for-all protection-for-all 3. The World Bank, “World Databank — Thailand 2013; 10. Asia Pacific Economic Cooperation, “Access to Trade and Indicator: Employment to population ratio, 15+, female (%) Growth of Women’s SMEs in APEC Developing Economies,” (modeled ILO estimate).” Accessible at http://data.worldbank. February 2013. Accessible at: http://wlsme.org/sites/default/ org/indicator/SL.EMP.TOTL.SP.FE.ZS. files/resource/files/2013_PPWE_Access-Trade-Growth- Women-SMEs.pdf 4. The World Bank, “World Databank — Thailand 2013 and 2014; Indicators: Population, female (% of total) and Labor force, 11. Teledirect Telecommerce “Comparison sites starting to make female (% of total labor force).” Accessible at http://data. waves in Asia,” July 6, 2012. Accessible at http://teledirect.com. worldbank.org/indicator/SP.POP.TOTL.FE.ZS and http://data. sg/comparison-sites-starting-to-make-waves-in-asia/ worldbank.org/indicator/SL.TLF.TOTL.FE.ZS. 12. Krungsri Credit Cards “Krungsri Lady Titanium MasterCard” 5. World Economic Forum, “The Global Gender Gap Report,” Accessed June 2015. Accessible at http://www.krungsricard. Insight Report, (2008 and 2014). com/kccstatic/en/creditcard_lady_titanium.html 6. The World Bank, “World Databank — Thailand 2012,” Accessed 13. Jitnarin N1, Kosulwat V, Rojroongwasinkul N, Boonpraderm A, July 2015 Haddock CK, Poston WS “Prevalence of overweight and obesity in Thai population: results of the National Thai Food 7. OECD “Pensions at a Glance Asia/Pacific 2011” 2012. Accessible Consumption Survey.” National Development and Research at http://www.oecd.org/els/public-pensions/49454202.pdf Institutes, Public Health Solutions of NYC, New York, NY 10010, USA. December 2011. Accessible at http://www.ncbi.nlm.nih. gov/pubmed/22526130 143 Women’s expectations are currently not met by bancassurance or agents, so there are opportunities for insurers to better train bancassurance staff to proactively offer gender- specific products 144 TURKEY FIVE INSIGHTS 1. In 2030, the insurance 3. Employers indicate premium spend by that women are “They know my financial situation; why do women clients in Turkey more likely to they not recommend the right products?” is predicted to reach $31 purchase employer- billion – $47 billion, provided insurance — Azra, Bancassurance Client, Istanbul, Turkey approximately eight to for themselves and 12 times the estimated their children. premium of $3.7 billion 4. Bancassurers “Life insurance is not an easy product; I ask spent by women in 2013. The women’s insurance are the primary my agent for advice, but when I want to distributors to opportunity in Turkey is change my premium payments, it takes the women, but are not the third largest out of agent a long time to get back to me with a the 10 focus markets.1 meeting women’s revised cover calculation.” needs in terms of 2. 40% of MSMEs are product offerings. — Ada, Insurance Client, Istanbul, Turkey owned by women, but lack insurance products 5. Many women to fit their needs. lack experience with insurance and would benefit from add-ons and tangible services, and are largely overlooked by the insurance industry to date. SETTING THE SCENE: THE BUSINESS CASE T he women’s retail insurance market in Turkey presents the third largest opportunity out of the 10 focus markets. By 2030, the potential size of the women’s individual insurance market is estimated to reach $31 billion – $47 billion, approximately eight to 12 times the estimated premium of $3.7 billion spent by women in 2013. The non-life product line is expected to dominate, growing from $3.2 billion in 2013 to $26.7 billion – $40.4 billion by 2030. The life insurance market is expected to grow from $0.5 billion in 2013 to $4.4 billion – $6.7 billion by 2030, while the health market is expected to grow from $15 million in 2013 to $122 million – $189 million. 145 TURKEY AT-A-GLANCE $47 B WHAT’S CAUSING OVERALL GROWING THIS GROWTH? WOMEN’S INSURANCE FROM $31 B Increase in labor force MARKET participation 8-12x GROWTH $3.7 B Increasing income Increase in tertiary education 2013 2030* Increasing life expectancy causing bigger protection gap Women play a significant LIFE GROWING role in influencing INSURANCE FROM purchasing decisions Large and untapped $6.7 B 8-12x entrepreneur segment $4.4 B $0.5 B GROWTH KEY SEGMENTS: 2013 2030* HEALTH Women Entrepreneurs GROWING INSURANCE FROM 8-13x $15 M $189 M $122 M Working Mothers GROWTH 2013 2030* *The 2030 market size estimate is bounded by: a) Baseline Growth (lower boundary): Growth in the number of women customers and individual premium spend per customer due to $40.4 B improvements in the women’s socioeconomic factors NON-LIFE b) Opportunistic Growth (upper boundary): In addition to INSURANCE GROWING socioeconomic improvements, FROM assume successful efforts in targeting more women to purchase insurance 8-13x products and in upselling/cross-selling $26.7 B products to each woman $3.2 B GROWTH 2013 2030* 146 COUNTRY PROFILE: TURKEY Women want to take the time to understand the details of an insurance product and not focus only on the price OPPORTUNITY DRIVERS Opportunity Driver 1: Women’s base of working women consumers employment increases, insurers will be socio-economic situation is for insurers to target. Furthermore, better able to target women and the improving in Turkey, resulting while women are still paid on average family wallet through their employers. in an increase in the segment of 50 percent less than men, the average working women as a potential Opportunity Driver 3: Women women’s income has more than customer base influence household purchasing doubled from 2008 – 2014,5 indicating room for growth in terms of women’s decisions In recent years, Turkey has experienced rapid economic growth, increasing share of wallet and resulting in Women in Turkey play a significant employment prospects across the women being more likely to spend on role in influencing purchasing decisions population and enabling improvements insurance products. and spreading awareness within their in health and education. Women families. In Turkey, 40 percent of are living longer and are enrolling Opportunity Driver 2: Women are more likely to purchase households have women as the sole in tertiary education in increasing financial decision-maker.6 Increases in insurance through their numbers (enrollment doubled between income, as outlined above, combined employer 2008 and 2014).2 Currently, only 29 with improved financial literacy, will percent 3 of women participate in In addition to an increase in serve to further increase women’s the workforce, but data show that disposable income with which to household bargaining power. As almost half of all working women in purchase insurance, increases in labor women become more aware of the Turkey work in the informal economy.4 participation could also mean increases risks in life and their potential financial However, the higher educational in the proportion of clients purchasing consequences, insurers can develop attainment is expected to be reflected insurance through their employer. Also, solutions that meet their concerns and in women’s participation in the labor as women’s education and their convert them into new customers. force in the coming years, growing the 147 COUNTRY PROFILE: TURKEY Opportunity Driver 4: The WHY AREN’T MORE WOMEN IN TURKEY women entrepreneurs’ segment today is large and untapped BUYING INSURANCE TODAY? A 2015 study by the World Bank If insurance companies want to Women see insurance as too Group indicates that women- capitalize on the women segment, expensive. Personal life insurance owned businesses represent 40 several issues need to be addressed. coverage is currently not affordable to percent7 of registered micro, small, all segments of the female population, Women do not see tangible benefits especially for those who are financially and medium enterprises, and are in insurance today. Women may dependent on their husbands. Even currently underserved in terms never realize the benefits of insurance in the health sector where the of insurance. Because of the lack if they do not make a claim, especially government has implemented a series of available insurance products, as there are few touch points with the of reforms that have led to universal women entrepreneurs tend to rely insurer. Interview results suggest that health coverage,8 those who can afford on informal means such as their women are not aware of pensions or the private system prefer the higher husbands and extended families for life insurance benefits. Women live, on quality of care offered. financial contributions, putting both average, seven more years than men them and their business at risk in the and retire two years earlier (58 for Women are dissatisfied with lack case of an event, such as death of a women, 60 for men), but they tend to of product targeting and poor spouse. Insurance could therefore underestimate their life expectancy, processing speed. Discussions with play a risk-mitigating role for women which makes them vulnerable to any local focus groups indicated that entrepreneurs with credit insurance, sudden economic shocks and affects bancassurance (the largest distribution which would be a valuable solution to their ability to afford retirement. channel for life products in Turkey) is secure business loans, and potentially Lack of tangible, immediate benefits less popular with women, as banks do explore other business insurance makes it difficult for insurance to not always proactively offer products solutions in addition to what is compete against other products for a based on the client’s banking history, currently offered. women’s share of wallet. Discussions which women would prefer. Agents, indicate that women who are aware of who make up the largest distribution insurance are more likely to purchase channel for non-life products, lack life insurance and pension products for client data that financial institutions themselves if affordable. might have. Therefore, they tend to offer highly standardized products and “After my promotion, the first tend to take time to revise coverage insurance product I purchased based on client requests. was health insurance — the quality of the healthcare is better and I get check-up services included in my cover.” HOW CAN THIS CHANGE? POSSIBLE SOLUTIONS TO BETTER PROTECT WOMEN — Belinay, Young Professional, Istanbul, Turkey To solve these problems and to tap graduated women who have greater into the full potential of the women’s potential for financial independence. market, insurers will need to find Currently, programs exist for banking Women’s expectations are currently solutions to offer to the women (such as those initiated by the Capital entrepreneur segment. They must Markets Board of Turkey) could be not met by bancassurance or agents, also raise awareness, offer tangible leveraged by insurers to identify target so there are opportunities for insurers benefits, and proactively meet the groups. A particular focus on health and needs of women while lowering costs. life insurance will be important, as these to better train bancassurance staff and are areas in which women have specific their agents to proactively offer gender- Develop targeted education campaigns to increase awareness needs and also an important influence in the decision-making process. specific among women. products. Regulators and the financial services industry could develop Insurers should launch educational education programs for women, programs helping women learn about particularly among the growing the most common types of risks they demographic of young, recently face based on their life milestones, 148 COUNTRY PROFILE: TURKEY Key Segments 1. WOMEN ENTREPRENEURS Bancassurance is the main distribution channel through which women buy their commercial insurance, but women entrepreneurs Key Characteristics: Owns her are not targeted sufficiently by the bancassurers. Women mainly own business, may be balancing use banks to purchase their commercial insurance, as they are one professional and personal of the key touch points for women starting or growing their own demands, may be married and business. Banks often require credit insurance to secure a loan and sell may have children. it with the loan. Women are, however, not made aware by the bank of other insurance products that could help them grow their business by mitigating risk. Women entrepreneurs may lack awareness of other insurance products. Limited financial management training and support provided to women entrepreneurs mean that many lack awareness of insurance products and the benefits they provide. Women entrepreneurs’ needs are currently not catered for holistically. Given that 50% of working women in Turkey are in the informal economy, and many do so in home-based businesses, they risk losing both their personal and professional assets in the case of events such as fire. No solutions are available to serve the holistic business needs of women, that is, to combine their business with their personal needs.  OTHERS 2. WORKING M Women are not aware of the benefits of insurance, and are often mistrusting of insurance companies. This is mainly due to lack of Key Characteristics: Focus is experience with the insurance industry, as, historically, women’s spouses on providing for her children tend to make the final financial decisions. Women instead tend to play and her children’s future influencing roles in household finances. This influencing role, while (finance, education). important, offers them less exposure to the final purchase. Regulators and insurers have been working to bring more awareness to the public For Middle Income: May be on natural disasters, by, for example, introducing compulsory earthquake used to relying on family protection cover for all homes. However, state-run insurance education and friends for help, but due programs for women do not exist yet. to urbanization, no longer has as strong an informal Many women lack the confidence to make financial decisions. In support network as she had general, women in Turkey today still face cultural and societal barriers when living in a rural area. in reaching financial independence. Increased education of women is expected to increase the rate of labor force participation in the next For Upper Income: Has ample years, as well as increase women’s financial literacy. However, today discretionary income to many women still lack the confidence to make financial decisions spend on luxury financial independently. products, but may also prefer less risky options such as Women tend to be more interested in the details of the coverage. savings/checking accounts. Women want to take the time to understand the details of a product and not focus only on the price. An executive from AXA in Turkey said, “Women are rational, and interested in details. They ask more about the product’s characteristics and details of the coverage. Compared to male clients, female clients need to be assured more [about the benefits], especially as a new client.” 149 COUNTRY PROFILE: TURKEY How to Meet the Needs of: 1. WOMEN ENTREPRENEURS interruption insurance with health insurance or employee accident insurance. Flexibility to Rethink insurance packaging and communication adapt the product to the needs of the business will be for entrepreneurs. Women entrepreneurs’ needs important. for protection go beyond what is currently offered by banks and insurance companies. To enable women 2. WORKING MOTHERS to start and grow their businesses, insurers need to explore innovative product solutions which de- Ensure women have sufficient information risk business activities, such as insurance against available to feel confident in making or influencing bankruptcy. These products may also encourage purchasing decisions. Insurers can help women to women to start their own businesses. Insurers and make decisions by introducing shorter policy documents banks further need to rethink the way that commercial and using clearer and less technical language. Women insurance is packaged and how benefits to women are have also expressed dissatisfaction with the claims communicated. This will require closer collaboration process, and being more transparent by giving them between banks and insurers. Insurers could also use the ability to track claims online could be a solution. commercial insurance as an entry point to bundle Leading practices in other markets demonstrate that a it with personal line covers such as life or health transparent and well-explained claims process supports insurance. An example of this is bundling business women’s decision-making and helps build their trust interruption insurance with health insurance or in insurers. Increased confidence and trust of women employee accident insurance. Flexibility to adapt the in insurance products and services will have knock- product to the needs of the business will be important. on effects, as it has had with other financial products. Interview results show that women are trying to educate Identify specific needs of women entrepreneurs. their peers and employees on the importance of savings, Insurers in Turkey are starting to investigate the in particular, as their life expectancy is much higher than potential of women customers to better understand that of their husbands. their purchasing behavior as well as their influence on their husband’s decision making on financial products. Employ more women sales agents to market to However, currently, limited data exist on the insurance women clients not currently being reached. Insurers needs of female entrepreneurs. Most insurers can leverage their own women’s workforce as advocates agree that property and liability insurance (such as for insurance and to test new product and marketing compulsory earthquake insurance) will be important in ideas. Women staff indicated that they give informal protecting the entrepreneur’s physical assets. advice to their friends and families about financial products. “Only when I started working for an insurance Develop bundled products for personal and company, I understood how important a life insurance policy professional needs. Bundling insurance packages is. Not for me as such but for my children in case anything for women entrepreneurs who run their businesses happens to me,” Ecrin, a working mother woman from from their homes — addressing both their personal Istanbul, stated. Insurers should think about programs to and professional needs — will protect against loss of incentivize their women employees for recommending income in the event that they or their employees are insurance products to their friends. unable to work. An example of this is bundling business 150 COUNTRY PROFILE: TURKEY such as a new job, marriage, or Proactively target products and Direct sales through mobile and online divorce, and how insurance can services to meet women’s needs and channels are growing in popularity mitigate these risks. Insurers can speed up process times. Women’s — especially through multi-national help women who have entered the expectations are currently not met by insurers — as an effective way to workforce manage their income bancassurance or agents, so there are reach a larger percentage of the and financial needs. Programs that opportunities for insurers to better population at potentially lower articulate the benefits of insurance train bancassurance staff to proactively cost. Loosening of regulations on for their children (such as how life offer gender-specific products, by direct sales for pension products insurance reduces the burden on their using analytics to offer “the right means that it is no longer necessary children of events such as the death product at the right time.” Greater to have face-to-face interaction of one of the parents), the household collaboration with banks could enable to receive cover, so policies can be wellbeing (via health protection), and insurers to tap into a wealth of data, bought and activated online. These their retirement needs (how their since a client’s financial situation can sales channels will enable insurers husband’s life insurance policy may generate key insights into what could to reach more women in Turkey, help with their retirement financial be offered, for example, knowing what including those who are not currently needs) will help put insurance into a women are taking loans for. Actively part of the formal labor market, and context that is related to their lives. targeting women and offering tailored are therefore less likely to receive solutions to address their needs will insurance products via their employer. Make insurance more tangible and increase insurance penetration of relevant to women. Add-on services the women’s segment in Turkey. could be introduced to support women in their busy lives; for example, instead Beyond more tailored products and of paying out a claim, the insurer services, insurers need to answer could send a replacement directly, concerns related to processing speed or dispatch a certified handyman to for pricing requests and changes to repair broken items. Women’s interest policies. These transactions could be “I was in contact with the bank in healthy lifestyles could be a topic improved by increasing the degree staff when I purchased the life for communication and could be an of automation in the underwriting cover; sometimes I even forget element to build on, for example, by process at the point of sale. that I have cover as I only get offering discounts in health or fitness reminded when they take the centers through insurers’ reward Identify lower cost distribution channels to bring down the cost of premium out of my account.” programs. Women-specific add-on services leveraging mobile phone premiums. Agents and bancassurance — Nisa, Bancassurance Client, Istanbul, apps could also be another way to are expensive channels in terms of Turkey make insurance more tangible. distribution for insurers — in fact, they are among the main drivers of cost — but they are still the largest distribution channels in the Turkish market. Endnotes 1. Ten Markets: Brazil, China, Colombia, Mexico, Morocco, Nigeria, 6. TEB Bank, Global Banking Alliance for Women, May 2015 India, Indonesia, Thailand, and Turkey Newsletter 2. World Economic Forum, “The Global Gender Gap Report,” 7. The World Bank, “World Bank Group – Turkey Partnership: Insight Report, (2008 and 2014). Country Program Snapshot.” April 2015. Accessible at http:// www.worldbank.org/content/dam/Worldbank/document/ 3. The World Bank, “World Development Indicators 2013” eca/Turkey-Snapshot.pdf Indicator: Labor force participation rate, female (% of female population ages 15+). 8. The World Bank, “Turkey on the way of universal health coverage through the health transportation program (2003- 4. Riada Akyol, “Turkish women’s informal work — a complex 2013) (English), January 1, 2015. story”, Aljazeera, August 2, 2014. 5. World Economic Forum, “The Global Gender Gap Report,” Insight Report, (2008 and 2014). 151 Realizing the full potential of the women’s insurance market will create impact far beyond the insurers’ bottom line, increasing innovation, women’s economic empowerment, and economic growth 152 11. Conclusion T he women’s insurance market is poised for growth. Globally, the women’s premium spend is expected to grow by up to two times its current size to $1.45 trillion to $1.7 trillion in 2030. Women entrepreneurs, who make up one third of the world’s business owners, are looking for financial solutions to expand their business and seek protection. Insurers who invest in understanding and targeting the women’s market will have a first mover advantage in capturing this growth. There are currently significant gaps in addressing help women overcome constraints in accessing insurance women’s needs for complete, affordable, and tangible products. Examples exist of insurers working with other insurance coverage that delivers peace of mind. In organizations to increase financial literacy, market to addition, insurers have not targeted products, marketing a majority-female workforce, and leverage existing or distribution approaches to different women’s community relationships to build their own brand segments. A comprehensive strategy is needed, beginning and trust. with collecting gender-disaggregated data and leading to development of products to provide the right coverage, Realizing the full potential of the women’s insurance at the right time, for the right woman. Distribution market will create an impact far beyond the insurers’ methods will need to provide women with enough clear bottom line. Women’s multifaceted roles in society information on products, while at the same time deliver make them a unique conduit for positive social efficiently and in a personalized manner. and economic progress. By leveraging saleswomen and their client-facing qualities, and by growing Greater inclusion of women within the insurance women homemakers, employees, business owners/ industry, more specifically in the marketing and entrepreneurs, and retirees’ insurance coverage, distribution functions will enable insurers to respond markets can expect increased economic growth to the diverse needs of clients. Additional hiring cannot be and innovation, as well as stronger economic the only solution. Insurers can start now, by encouraging empowerment. This, in turn, will further the growth of their salesforce to lead with listening and developing an insurers’ customer base, completing a virtuous cycle. understanding of women clients’ unique needs. Success will also require collaboration; insurers will need to engage with other stakeholders ranging from governments to NGOs to complementary industries to 153 Insurance will help women recognize and anticipate risks, a behavior they will pass on to their family and community 154 Annex A: List of Graphs and Figures LIST OF GRAPHS Graph 1 Women’s Retail vs. Total Retail and Commercial Insurance Market Size in the 10 Focus Markets ......................14 Graph 2 2013 Women’s Insurance Market Size in the 10 Focus Markets .........................................................................................15 Graph 3 2030 Women’s Insurance Market Size in the 10 Focus Markets .......................................................................................15 Graph 4 2013 Women’s Life Insurance Market Size in the 10 Focus Markets ................................................................................16 Graph 5 2030 Women’s Life Insurance Market Size in the 10 Focus Markets ...............................................................................16 Graph 6 Life Expectancy in Years of Women vs. Men in the 10 Focus Markets ............................................................................17 Graph 7 Gap in Years Between Life Expectancy and Statutory Retirement Age for Women and Men ................................17 Graph 8 2013 Women’s Private Health Insurance Market Size in the 10 Focus Markets ...........................................................19 Graph 9 2030 Women’s Private Health Insurance Market Size in the 10 Focus Markets ..........................................................19 Graph 10 2013 Women’s Non-Life Insurance Market Size in the 10 Focus Markets .................................................................... 20 Graph 11 2030 Women’s Non-Life Insurance Market Size in the 10 Focus Markets ................................................................... 20 Graph 12 Female Enrollment in Tertiary Education in the 10 Focus Markets ..................................................................................21 Graph 13 Female Labor Force Participation Rates in the 10 Focus Markets ................................................................................... 22 Graph 14 Women’s Estimated Earned Income in the 10 Focus Markets .......................................................................................... 23 Graph 15 Trend Between AXA’s Women Salesforce and Women Clients in Asian Markets ......................................................26 LIST OF FIGURES Figure 1 Projected Women’s Insurance Market Size in 2030 in the 10 Focus Markets ..............................................................15 Figure 2 Projected Women’s Life Insurance Market Size in 2030 in the 10 Focus Markets ......................................................16 Figure 3 Projected Women’s Private Health Insurance Market Size in 2030 in the 10 Focus Markets .................................19 Figure 4 Projected Women’s Non-Life Insurance Market Size in 2030 in the 10 Focus Markets .......................................... 20 155 Annex B: Definitions Bancassurance: Partnership or relationship between an Insurance Distribution/Salesforce: Sellers of insurance insurer and a bank, whereby insurance is sold through the products. Include independent insurance agents, tied bank. insurance agents, insurance brokers, and bancassurance representatives. Baseline Growth: Growth in the number of women clients and personal premium spend per customer due Life Insurance: For the purposes of this report, life to improvements in socioeconomic factors of women, insurance is divided into two categories: with no changes to any other variables. This is the growth assuming that no efforts are made to target more women Protection Oriented Life Insurance: Offers and/or to upsell/cross-sell to more women. protection only — payout to a beneficiary in the case of the policyholder’s death. This type of insurance is Book of Business: The clients or accounts serviced used to secure the policyholder’s income to be passed by brokers, agents (tied and independent), and onto the beneficiary to reduce the financial burden bancassurance representatives. on the beneficiary after the policyholder’s death. Examples include whole life, credit life, and term life. Focus Markets: Brazil, China, Colombia, Indonesia, India, Mexico, Morocco, Nigeria, Thailand, Turkey Savings Oriented Life Insurance: Offers protection component (e.g. payout for claims) and savings Health Insurance: For the purposes of this report, component (e.g. investments in mutual funds) that health insurance is defined as private health insurance. provides returns to the policyholder. Savings oriented Private health insurance is defined to be voluntary policies life insurance in certain markets can offer tax benefits offered through insurance companies, with premiums that can make it more appealing than investments calculated based on risk ratings. in banking products. Examples include endowment, universal life, and annuity products. 156 Microinsurance: Microinsurance is a mechanism Unit-Linked Life Insurance Products: Unit Linked to protect low-income households against risks, products are type of insurance vehicle in which the such as illness, a death in the family, or crop failure.154 policyholder purchases units at their net asset values and Microinsurance is typically defined in terms of the also makes contributions toward another investment income of target clients (those with daily income of vehicle.157 $2 to $8), the limits on the amount of premium or the size of the benefit set by the local regulator (variable, “U Shaped” Relationship between Income and based on market, type of insurance, and coverage), or a Insurance Purchase: Lower income correlates to combination of these criteria.155, 156 higher insurance purchase due to high perceived need for financial protection. As income increases, insurance Non-Life Insurance: For the purposes of this report, purchase decreases to a minimum, due to perceived belief non-life insurance is defined as property and casualty that out-of-pocket spend is sufficient to recover loss. (P&C) insurance. Examples include motor insurance and After the minimum point, insurance purchase rises with home insurance. additional increases in income due to perception that higher value assets will require more extensive coverage. Opportunistic Growth: In addition to the socioeconomic improvements, this assumes successful efforts in Women Clients: Women purchasers of retail insurance targeting more women to purchase insurance products products. (increasing the number of women who purchase insurance) and in upselling/cross-selling products to each Women’s Insurance Market Size: Individual annual woman (increasing the premium spend per woman). premium spend by women retail customers, including spend by those who are self-employed. The market size Opportunity Driver: Factors and behaviors that does not include commercial lines (e.g. women covered increase women’s ability or willingness to purchase under employer plans) or insurance spend by women on insurance, which, in turn, increases the size of the others (e.g. spend on children). women’s insurance market. Examples include: increase in socioeconomic conditions, increase in bargaining power. “S Shaped” Relationship between Income and Insurance Purchase: As income increases, purchase of insurance will increase at an exponential growth rate due to perceived need for more protection. Growth will continue until the inflection point, where insurance purchase slows with increase in income due to saturation of insurance products. 157 Programs that articulate the benefits of insurance for their children, the household well- being (via health protection), and their retirement needs will help put insurance into a context 158 Annex C: Detailed Methodology T he market sizing presented in this report is global in scope, but focuses on 10 emerging markets (Brazil, China, Colombia, India, Indonesia, Mexico, Morocco, Nigeria, Thailand, and Turkey). These markets were selected based on rapid growth experienced by both the women’s and insurance markets. The socioeconomic advancements made by women vary by market, but trends indicate an increased need in the future to protect women’s assets and independence in the future. In addition, insurance companies’ rate of growth in these markets is rapidly outpacing growth in the developed markets. A recent study by McKinsey & Company noted that though developed markets accounted for 84 percent of insurance premiums, developing markets drove more than half of the global premium growth.158 In particular, projections indicate that global insurance growth will be driven in large part by the BRIC (Brazil, Russia, India, and China) markets, as well as parts of North Africa, Asia, and Latin America. Primary and secondary research were used to gather quantitative data on women’s insurance purchasing behavior — i.e. the uptake of insurance within the women’s market. Qualitative data was also collected to inform analysis on the trends, challenges, and opportunities in the women’s insurance market, as well as to validate and test assumptions. Data was collected over the course of eight weeks beginning January 2015. See Figure M1 for an overview of the methodology. A key finding from the data collection process is the limited amount of publically available gender disaggregated quantitative data on women’s purchasing behavior in the insurance industry, specifically on the number of women insurance clients and the total insurance premium spend per woman. Hence, qualitative data from interviews were used to make logical assumptions and test trends in these areas. Figure M1: Overview of Methodology 1 2 Primary Research Secondary Research 3 Identification of Causal Factors 4 Sizing of the Women’s Insurance Market Opportunity 159 1. Primary Research 174 interviews and surveys were conducted across 10 markets with the following stakeholders: • Senior insurance, reinsurance and bancassurance representatives: What is the current status of women as both customers and members of the salesforce in the insurance markets, and what initiatives are currently in place to increase women’s involvement in insurance? • Insurance brokers and agents: What benefits and challenges are faced by women in the salesforce? • Women consumer focus groups (from various demographic brackets, including entrepreneurs): What are their perceptions, needs, and usage of insurance products in their markets? • Insurance associations: What are the current products and services offered by insurers, and are they relevant and meeting the needs of women customers? • Insurance regulators: How do public policies and programs currently provide opportunities and barriers to involving more women in the insurance sector? • Universities: What are the trends in male vs. female engagement in insurance related fields (e.g. business management, engineering, actuarial sciences)? 2. Secondary Research Desk research was also conducted using the following sources (see Figure M2 right): • Literature Review: Review of existing reports on gender, insurance, and development from academics, international development organizations, and insurance industry authorities to understand and learn from existing initiatives on women in insurance. This secondary research complemented data collected through primary research. • Insurance Industry Database – AXCO – Economist Intelligence Unity – Swiss Re – Munich Re • Gender and Development Database – International Labour Organization – United Nations Statistical Division (UNSTAT) – World Bank – World Health Organization – World Economic Forum 160 Figure M2: Types of Data Collected from Secondary Research Insurance Insurance Business Assets Premiums Premiums Environment Insurance Consumption Fiscal Position Density Insurance Economic Sectors Social Wellbeing Penetration Insurance Macro Economics Penetration Policy Environ- ment Education Education Financial Behavior Financial Behavior Regulatory Regulatory Environment Environment Health Care Health Care Employment/ Employment/ Employment/ Employment/ Income levels Income levels Income levels Income levels Demographics Demographics Demographics Demographics Demographics Demographics 3. Identifying Causal Factors that Influence Women’s Purchase of Insurance A statistical exercise was carried out to determine what economic, behavior or socioeconomic factors have the greatest influence on women’s uptake of insurance. This required identification of a data set to represent women’s insurance uptake (the dependent variable) to test various economic, behavior, and socioeconomic causal factors (independent variables) against. Identification of a data set to represent women’s insurance uptake (dependent variable selection) The data assessment found that data on female insurance penetration is sparse. Personally paid for health insurance (percentage age 15+) for 2011 was selected as the proxy to represent women’s insurance uptake as it was available across all markets. Identification of causal factors that influence personally paid health insurance purchase (independent variable selection) A regression analysis was then carried out to test which economic, behavioral or socioeconomic factors most influenced women’s propensity to personally pay for health insurance. The regression was conducted across 137 markets. Upon analysis of the Personally Paid for Health Insurance data set for men and women, findings show there is a high correlation between male and female insurance penetration (see Figure M3). 161 Figure M3: Correlation Between Women’s and Men’s Personally Paid Health Insurance Purchase Rates (15+) Personally paid for health insurance, female (% age 15+) Personally paid for health insurance, male (% age 15+) 50 40 98% Correlation 30 20 10 0 Markets The variation between countries is explained by general macro-economic factors such as GDP per capita, but offers little insight into what might be affecting the behavior of women in particular. To understand drivers of women’s insurance buying behavior, focus was shifted to the difference between men’s and women’s insurance penetration. The gap between men and women is smaller in some markets than others (see Figure M4), so a deeper understanding was needed on what market factors lead to greater parity between men’s and women’s insurance purchase rates. Figure M4: Difference Between Women’s and Men’s Personally Paid Health Insurance Purchase Rates (15+) Difference 4 2 0 -2 -4 -6 -8 Markets Using a cross sectional regression model, 197 data series were tested for their correlation with the gap between the rates of men’s and women’s personally purchased health insurance. These data sets range across demographic, education, employment, financial behavior, fiscal position, regulatory, and healthcare categories. Through the regression, individual wealth (GDP per capita), fertility rate and women’s labor force participation rate were found to have the biggest influence on the gap between men’s and women’s health insurance purchase rates. These relationships were measured with a high degree of statistical confidence. 162 Variable T-Value for Model P-Value for Model Correlation with gap Coefficients Coefficients between men’s and women’s insurance purchase rates Ratio of female to male labor force participation 3.66 0.1% 0.4 GDP per capita (current $) 2.45 2.2% 0.18 Fertility rate, total (births per woman) 2.99 0.7% 0.07 Countries with higher rates of individual wealth and women’s labor force participation tend to have a smaller gap between men’s and women’s health insurance penetration. Hence, these variables were identified to have the strongest influence in closing the gap between men’s and women’s insurance purchase rates. Ratio of female to male labor force Fertility rate, total (births per GDP per capita (current $) participation rate (%) woman) 15,000 100 8 10,000 6 50 4 5,000 2 0 0 0 Ratio of female to male labor force Fertility rate, total (births per woman) GDP per capita (Current US$) participation rate (%) Markets Markets Markets Although these three variables were found, statistically, to have the strongest influence on the gap between men’s and women’s insurance purchase rates, market interviews with insurance specialists identified that individual wealth and labor force participation are the most relevant factors in influencing women’s purchase of insurance, due to their increased ability and willingness to spend on insurance. Hence, only individual wealth and women’s labor force participation were used as inputs for the market sizing exercise. Fertility rate is reflected in the qualitative findings of the report as the number of dependents women have, a factor used to segment the women’s market. 4. Sizing the Women’s Insurance Market Opportunity The size of the women’s insurance market is defined as the annual individual premium spend by women retail clients, including spend by those who are self-employed. The market size does not include commercial lines (e.g. women covered under employer plans), insurance spend by women on others (e.g., spend on children), or insurance purchases women may have influence over or public spending on insurance for women. Given the complexities of calculating and forecasting the premium volume opportunity within the insurance industry, particularly at a global scale, these projections should be taken as indicative. 163 The size of the women’s insurance market was calculated using the following formula: Women’s Insurance A) Number of Women B) Premium Spend Market Opportunity who Purchase per Woman (Premium Value) Insurance The sections below will provide further explanation to the variables: a) Number of women who purchase insurance: The number of women who purchase insurance was calculated using the following formula: ii. Percentage of women in A) Number of Women i. Female labor force the labor force who purchase who Purchase Insurance participation (15-65) personal insurance iv. Percentage of female v. Percentage of women iii. Female population population 65+ who who receive a passive (65+) receive a passive income income who purchase (pension) personal insurance Description of variables and calculations i. Female labor force participation: As identified in the cross-section regression analysis above, labor force participation is an important variable that influences women’s insurance purchase rates. Interview findings substantiated that women who work will be more likely to purchase insurance due to access to income. Hence, female labor force participation was used as a basis to estimate the number of women who purchase insurance.159 ii. Percentage of women in the labor force who purchase personal insurance: Not all women in the labor force will purchase individual insurance. To the percentage of women who did, the percentage of the adult working population (15+) who purchased insurance160 was multiplied with the total adult population (male and female 15 – 65)161 to get an estimate of the total number of insurance clients in each market. The percentage of women retail clients in select insurers’ portfolios was then used to determine the total number of women retail insurance clients in a market. This was then calculated as a percentage of the total female labor force. iii. Female population 65+: Women who retired from the labor force also purchase individual insurance. The population of retired women was assumed to be all women over age 65.162 iv. Percentage of female population 65+ who receive a passive income: It was assumed that only women who earn a passive income (e.g. through pension)163 will be able to purchase insurance when they are retired. v. Percentage of women who receive a passive income who purchase personal insurance: It was assumed that when women retire, a lower percentage will be willing to purchase personal insurance (compared to the percentage of employed women who purchase personal insurance — variable ii) given their decrease in income. The percentage of pensioned women who purchase insurance was estimated to be 70 percent164 of the percentage of employed women who purchase insurance. 164 b) premium spend per woman (as percentage of income): The spend per woman was calculated using the following formula: vi. Total vii. Total viii. Income per B) Premium spend aggregate aggregate woman (from per woman consumer consumer employment or insurance spend spending pension) Description of variables and calculations vi. Total aggregate consumer insurance spend: Total aggregate value of consumer insurance spend within the market.165 This includes life, private health, and property and casualty spend by individuals and self-employed, and does not include commercial lines insurance (e.g. does not include insurance provided by employers). vii. Total aggregate consumer spending: Total aggregate value of all consumer spend within the market.166 For the purposes of calculating the market sizing, it was assumed that the total consumer spend represented the total income. Gender disaggregated data on total consumer insurance spend and total consumer spend was not available; therefore, it was assumed that men and women spend the same percentage of their consumer spending on insurance in 2013. However, women were projected to having a higher willingness to spend in 2030. viii. Income per woman: Estimated earned income per woman at purchasing power parity.167 Pension income was calculated by applying a net pension replacement rate defined as the individual net pension entitlement divided by net pre-retirement earnings.168 Net pension replacement rate was assumed to be the best indicator of pension income earned by retired women. 165 Scenarios In predicting the market size for 2030, a range of values is provided as two growth scenarios were considered: 1. Baseline growth (lower boundary of the range): Growth in the number of women customers and premium spend per customer due to improvements in the socioeconomic factors of women, with no changes to any other variables. This is the growth assuming that no efforts are made to target more women and/or to upsell/cross-sell to more women. Variable Growth Assumptions A) Number of i. Female labor force participation Growth as projected by ILO169 Women who ii. Percentage of women in the labor force who No Change Purchase purchase personal insurance Personal iii. Female population 65+: Growth as projected by UN170 Insurance iv. Percentage of female population 65+ who No Change receive a passive income v. Percentage of women who receive a passive No Change income who purchase personal insurance B) Premium Spend vi. Total aggregate consumer insurance spend No Change per Woman vii. Total aggregate consumer spending No Change viii. Income per woman Growth projected using historical rates from World Economic Forum171 2. Opportunistic growth (upper boundary of the range): In addition to the socioeconomic improvements listed above, assume successful efforts in targeting more women to purchase insurance products (increasing the number of women who purchase insurance) and in upselling/cross-selling products to each woman (increasing the premium spend per woman). Variable Growth Assumptions A) Number of i. Female labor force participation Growth as projected by ILO172 Women who ii. Percentage of women in the labor force who Growth proportional to the industry growth rate Purchase personal purchase personal insurance as projected by Munich Re173 Insurance iii. Female population 65+: Growth as projected by UN174 iv. Percentage of female population 65+ who No Change receive a passive income v. Percentage of women who receive a passive Growth proportional to the industry growth rate income who purchase personal insurance as projected by Munich Re175 B) Premium Spend vi. Total aggregate consumer insurance spend Growth as a percentage of current spending. per Woman Market interviews indicated that women in focus markets were willing to pay 10 to 20 percent of their salary on insurance, which is, on average, 50 percent more than what they were currently spending on insurance. It was assumed that insurers are able to capture the full increase in women’s willingness to pay. vii. Total aggregate consumer spending No Change viii. Income per woman Growth projected using historical rates from World Economic Forum176 166 Assumptions Made Assumption Type Assumption Description Calculation “Current Women’s Insurance Market Size” was calculated using premium data from 2013177 Calculation The women’s insurance market size for each product line was calculated by taking the ratio of product line premium value to total premium volume for the total insurance industry,178 and applying the ratio to the total women’s insurance market size. For example, the market size for the women’s life insurance market was determined by calculating the ratio of the life insurance premium value to the total insurance premium value for the entire insurance industry, and applying this ratio to the total women’s insurance market size. Calculation Due to limited data availability, the size of the non-life market was calculated by subtracting the size of the life and health market from the overall market size Calculation The growth rates (CAGR) for women’s labor force participation, women’s income, insurance premium, insurance density, and percentage of the women’s population who purchase insurance were applied consistently to the calculations for all product lines and for the overall market size Data Most recent data was used, with datasets ranging from 2010 – 2013. Limitations: Given the novelty of the topic, there are a number of data limitations in calculating the market size: • Limited data was collected on the insurance needs of women in all income brackets and geographies (e.g., rural, urban) due to time constraints in the research. More research is needed to gain a deeper understanding of each segment’s needs and wants. • No data was available across the markets on the total personal premium spend (across all product lines) by women on insurance, so insurance spending as a percentage of total consumer spending was identified as the most representative variable for each market. Note that insurance spend as percentage of total consumer spend is for 2013 is not gender-specific (i.e., it is assumed that in 2013, men and women spend the same percentage of their income on insurance); however, women are projected to spend a higher percentage of income on insurance in 2030. • Limited information was available on the percentage of women who hold insurance in each country, so projections were made based on financial inclusion reports and select insurers’ portfolios. • Extrapolating the global insurance premium market size for women required averaging the values across many different markets, so care should be taken when making direct comparisons between the focus market and the global market.   167 Annex D: Bibliography Global Report Chitayat, Deanna. “Gender Equality in Caregiving: The United Nations Response.” American Psychological Association. Accenture. “Insurers Commit to Digital Transformation as a Lever Psychology International Newsletter, July, 2009. http://www. of High Performance.” 2013 Digital Insurance Survey: Europe, apa.org/international/pi/2009/07/un-gender.aspx. Latin America and Africa (2013): 3-22. Churchhill, Craig, and Sarah Bel. “Using Insurance to Drive Trade.” Accenture. “Succeeding at Microinsurance through Accessed June 2015 http://www.tradeforum.org/article/ differentiation, Innovation and Partnership.” (2012): 1-18. Using-insurance-to-drive-trade/. Accenture. “The Digital Insurer Claims Customer Survey: Why ComScore. “Women on the Web: How Women are Shaping the Claims Services Matter.” (2014) Internet.” (2010): 3-30. “After All Women Bank, Now All Women Insurance Branch.” D’Espallier, Bert, Isabelle Guérin, and Roy Mersland. “Women and Business Standard, January 3, 2014. http://www.business- Repayment in Microfinance.” Working Paper (2009): 1-24. standard.com/article/finance/after-all-women-bank-now- http://www.microfinancegateway.org/sites/default/files/ all-women-insurance-branch-114010300875_1.html. mfg-en-paper-women-and-repayment-in-microfinance- Allianz. “Bajaj Allianz Promoting Women’s Careers.” Accessed mar-2009_0.pdf. June 2015. https://www.allianz.com/en/press/news/ Demirguc-Kunt, Asli, Dorthe Singer, Leora Klapper, and Peter Van company/human_resources/news_2014-01-09.html. Oudheusden. “The Global Findex Database 2014: Measuring Assupol. “Women and Insurance — an Assupol Perspective.” Financial Inclusion around the World.” Policy Research and (2014). Working Paper No. 7255 (2015): 10-71. Bain & Company. “Customer Loyalty and the Digital Duflo, Esther. “Women Empowerment and Economic Transformation in P&C and Life Insurance: Global Edition Development.” Journal of Economic Literature Vol. L (December 2014.” Global Insurance Loyalty (2014). http://www.bain.com/ 2012): 1051-1079. Images/DIGEST_Customer_loyalty_and_the_Digical_ Ernst & Young. “High Achievers: Recognizing the Power of transformation_in_insurance.pdf. Women to Spur Business and Economic Growth.” (2013): Banthia, Anjali, Brandon Mathews, Michael J. McCord, and 1-12. http://www.ey.com/Publication/vwLUAssets/ Susan Johnson. “Microinsurance That Works for Women: Women_the_next_emerging_market/$FILE/ Making Microinsurance Programs Gender-Sensitive.” WomenTheNextEmergingMarket.pdf. Microinsurance Paper No. 3 (2011): 1-33. Ernst & Young. “Women: The Next Emerging Market.” (2013): Bernard, Tara Siegel. “Financial Advice by the Demographics.” 1-24. The New York Times, February 20, 2015. http://www.nytimes. Salmon, Felix. “Charts of the day: female risk-aversion edition,” com/2015/02/21/your-money/financial-advice-customized- Reuters, February 24, 2014, accessed July 2015 http://blogs. by-sex-ethnicity-or-demographics.html?mwrsm=Email&_ reuters.com/felix-salmon/2014/02/24/charts-of-the-day- r=0. female-risk-aversion-edition/ Blackrock. “Men vs Women: Risk Aversion,” NASDAQ, November Fletschner, Diana, and Lisa Kenney. “Rural Women’s Access 6, 2014, accessed July 2015, http://www.nasdaq.com/article/ to Financial Services: Credit, Savings and Insurance.” The men-vs-women-risk-aversion-cm297364 Agricultural Development Economics Division ESA Working Paper Barclays Wealth. “Barclays Wealth Insights - Volume 2: A No. 11-07 (2011): 1-22. Question on Gender,”(2007) Gilman, Douglas B., and Sandra Lawson. “The Power of the Purse: Borges, Phil. “Women Empowered: Inspiring Change in the Gender Equality and Middle-Class Spending.” (2009): 1-25. Emerging World,” (2007). Gincherman, Anna. “Designing Women Focused Financial Brush, Candida. “How Women Entrepreneurs Are Transforming Products — Women’s World Banking’s Approach.” Women’s Economies and Communities.” Accessed June 2015. http:// World Banking (2013). Accessed June 2015 http://www. www.forbes.com/sites/babson/2013/02/16/how-women- slideshare.net/womensworldbanking/anna-gincherman. entrepreneurs-are-transforming-economies-and- Goldman Sachs. “Access to Capital for Women Entrepreneurs.” communities/. Accessed June 2015 http://www.goldmansachs.com/ Brush, Candida G., Donna J. Kelley, Patricia G. Greene, and Yana our-thinking/pages/access-to-capital-for-women- Litovsky. “Global Entrepreneurship Monitor: 2012 Women’s entrepreneurs.html?CID=PS_01_19_07_00_00_00_01 Report.” Global Entrepreneurship Research Association Accessed June 2015. (2012): 6. Groupe Speciale Mobile Association (GSMA). “Bridging the Gender Gap: Mobile access and usage in low and middle- income countries.” Connected Women 2015 (2015): 1-118. 168 “HDFC Life Smart Women Plan: A Unit Linked Insurance Plan Joglekar, Yogini. “Women Pulling Ahead of Men as Insurance with Life Insurance Coverage.” Accessed June 2015. http:// Agents.” Daily News and Analysis, September 29, 2011. www.hdfcbank.com/htdocs/brochure/insurance/HDFC_ Kaspersky Lab. “Consumer Security Risks Survey 2014: Multi- Life_Smart_Woman_Plan.pdf. Device Threats in a Multi-Device World.” (2014). “HDFC Life’s Smart Women Plan Voted Product of the Year, Kato, Kosuke, Michael Silverstein, and Pia Tischhauser. “Women 2013.” Accessed June 2015. http://www.indiaprwire.com/ Want More (in Financial Services).” Boston Consulting Group pressrelease/insurance/20130319166443.htm. Opportunities for Action (2009). Hewlett, Sylvia Ann. “Why Women are the Biggest Emerging Lawson, Sandra. “Women Hold Up Half the Sky.” Goldman Sachs Market.” Harvard Business Review, March 8, 2010. https://hbr. Global Economics Paper No. 164 (2008): 1-16. org/2010/03/leverage-your-female-demograph/. Lloyd’s. “Factsheet: Insurance and Growth.” Accessed June 2015. Impact Insurance. “What is Microinsurance?” Accessed June https://www.lloyds.com/~/media/files/news%20and%20 2015. http://www.impactinsurance.org/about/what-is- insight/global%20underinsurance%20report/factsheets/ microinsurance. the%20role%20of%20insurance%20industry.pdf. Insurance Europe, and Oliver Wyman. “Funding the future Mehta, Kalyani. “Stress among Family Caregivers of Older Insurers’ role as institutional investors.” (2013): 1-52. Persons in Singapore.” J Cross Cult Gerontol 20 No. 4 (2005): Insurance Research Center. “India: Proportion of Women Life 319-334. Insurance Agents Rise.” (2011). http://www.irc.ac.ir/en/ MetLife. “Latin American Employee Benefits Trends Study: Brazil, news/news.php?newsid=273. Chile, Mexico.” (2015): 1-44. Intel. “Women and the Web: Bridging the Internet Gap and Moffitt, Andrea Turner, Melinda Marshall, and Sylvia Ann Hewlett. Creating New Global Opportunities in Low and Middle- “Harnessing the Power of the Purse: Female Investors and Income Countries.” (2012): 10-100. Global Opportunities for Growth.” Center for Talent Innovation International Finance Corporation (IFC). “Microinsurance Has (2014): 1-8. Potential to Become $50 Billion Market.” Accessed June Munich Re Economic Research. ”Insurance Market Outlook.” 2015. http://www.ifc.org/wps/wcm/connect/industry_ (2015). ext_content/ifc_external_corporate_site/industries/ financial+markets/news/microinsurance+ Nichols, Hilary. “A Must-Have when Launching Insurance in has+potential+to+become+$50+billion+market+. Uganda: Consumer Education.” Women’s World Banking, February 16, 2015. http://www.womensworldbanking.org/ International Finance Corporation (IFC). “Strengthening Access news/blog/must-launching-insurance-uganda-consumer- to Finance for Women-Owned SMEs in Developing education/. Countries.” (2011): 6-62. Nippon Life Insurance. “Annual Report 2014.” (2014): 32-33. International Foundation for Electoral Systems, and Institute for Women’s Policy Research. “Focus on Morocco: Paid Work Nwaebuni, Rose. “Nigeria: A Difficult Place to be a Widow.” The and Control of Earnings & Assets Topic Brief,” The Status of Africa Report, November 27, 2013. Women in the Middle East and North Africa (2010): 1-15. Organisation for Economic Co-operation and Development International Labour Organization (ILO). “Gender and (OECD). “Financial Literacy and Inclusion: Results of OECD/ employment.” Accessed June 2015. http://www.ilo.org/ INFE Survey Across Countries and by Gender.” (2013): 1-24. employment/areas/gender-and-employment/lang--en/ Organisation for Economic Co-operation and Development index.htm. (OECD). “Women and Financial Literacy: OECD/INFE International Labour Organization (ILO). “Small Premiums, Long- Evidence, Survey and Policy Response.” (2013). Term Benefits: Why Poor Women Need Microinsurance.” Osterland, Andrew. “Female Clients more Likely than Men to World of Work Magazine No. 69 (2010): 31-33. Make Referrals.” Investment News. Accessed June 2015. International Monetary Fund (IMF). “Detailed Assessment of http://www.investmentnews.com/article/20120424/ Observance of International Association of Insurance FREE/120429972/female-clients-more-likely-than-men-to- Supervisors (IAIS) Insurance Core Principles.” IMF Country make-referrals. Reports No. 12, 13 (2012/2013). Palmer, Allegra. “An Unintended Secret: Microinsurance in Intesa SanPaolo. “Annual Report 2014.” (2014): 93, 143. Morocco.” Women’s World Banking. Accessed June 2015. https://www.womensworldbanking.org/news/blog/ Intesa SanPaolo. “Pollizza Business Gemma.” Accessed April 2015. unintended-secret-microinsurance-morocco/. http://www.intesasanpaolo.com/tutela-piccole-imprese/ polizza-business-gemma.jsp. PricewaterhouseCoopers. “Employee Benefits Preference Varies According to Gender and Age: PwC Research.” Accessed Intesa SanPaolo. “Social Report on Customers 2012.” (2012). June 2015. http://pwc.blogs.com/press_room/2015/04/ Iyer-Ahrestanim, Savita. “Room to Grow: How Advisors’ employee-benefits-preference-varies-according-to- Approach to Women Might Hurt Their Business.” Accessed gender-and-age-pwc-research.html. June 2015. http://www.thinkadvisor.com/2013/09/30/room- to-grow-how-advisors-approach-to-women-might. 169 Qualcomm Wireless ReachTM, Vital Wave, and Groupe Speciale World Bank Group. “Supporting Growth-Oriented Women Mobile Association (GSMA) mWomen. “Transforming Entrepreneurs: A Review of the Evidence and Key Women’s Livelihoods through Mobile and Broadband: Challenges.” Innovation, Technology and Entrepreneurship Policy A Study on the Value of Mobile Broadband for Working Note No. 5 (2014): 1-20. Women in the Developing World.” (2014): 1-35. World Bank Group. “The World Development Report 2012: Rappaport, Anna. “Key Retirement Concerns and Planning Tips Gender Equality and Development.” (2012). for Women.” Forbes. Accessed June 2015. http://www. World Health Organization. “Falls.” WHO Media Center Fact Sheet forbes.com/sites/pensionresearchcouncil/2015/04/08/ No. 344 (2012). retirement-planning-key-but-under-recognized-concerns- for-women/. World Health Organization. “Global Health Expenditure Database.” Accessed April 2015. http://apps.who.int/nha/ Rupp, Christine, DeAnne Aguirre, Karim Sabbagh, and Leila database. Hoteit. “Empowering the Third Billion: Women and the World of Work in 2012.” PricewaterhouseCoopers, and Xie, Lorry, Ronald Gordeon, and Tian Xu. “Brazil’s Health Strategy& (2012): 3-11. Insurance.” (2012): 1-16. Sayer, Kate, and Michael Silverstein. “The Female Economy.” Zultowski, Walter H. “The Changing Middle Market for Life Accessed June 2015. https://hbr.org/2009/09/the-female- Insurance in China.” (2014): 1-18. economy. “Seguro Auto Mulher.” Accessed April 2015. http://www. portoseguro.com.br/seguros/seguro-de-veiculos/seguro- Country Reports de-automovel/linha-de-produtos/seguro-auto-mulher. Accion International. “Mexico’s Prospects for Full Financial Inclusion.” Accessed June 2015. https:// Shah, Alpesh, and Burjor Dadachanji. “Insurance @ Digital — 20X centerforfinancialinclusionblog.files.wordpress.com/2011/10/ by 2020.” The Boston Consulting Group, and Google (2014): mexicos-prospects-for-full-financial-inclusion-english.pdf. 5-13. Akyol, Riada. “Turkish Women’s Informal Work - A Complex Shin, Heeju. “Female-headed Households, Living Arrangements Story.” Aljazeera, August 2, 2014. and Poverty in Mexico.” PhD diss., University of Texas at Austin, 2012. Alami, Aida. “Morocco’s Health Care System in Distress.” The New York Times, March 27, 2013. http://www.nytimes. Standard Life. “Investors Relations Newsletter.” (August 2012): com/2013/03/28/world/middleeast/fewer-than-30- 1-4. percent-of-moroccans-have-health-insurance.html. Stewart, Barbara. “Women are Risk Aware- not Risk Adverse.” Allianz. “Bajaj Allianz Promotion Women’s Careers.“ Accessed The Edmonton Sun, November 5, 2013. http://www. June 2015. https://www.allianz.com/en/press/news/ edmontonsun.com/2013/11/05/women-are-risk-aware---- company/human_resources/news_2014-01-09.html/. not-risk-averse. Asia Pacific Economic Cooperation. “Access to Trade and Growth Swiss Re. “Keeping Healthy in the Emerging Markets: Insurance of Women’s SMEs in APEC Developing Economies.” Accessed Can Help.” Sigma No. 1 (2015). June 2015. http://wlsme.org/sites/default/files/resource/ Swiss Re. “World Insurance in 2013: Steering Towards Recovery.” files/2013_PPWE_Access-Trade-Growth-Women-SMEs.pdf. Sigma No. 3 (2014): 1-47. Babson College. “Global Entrepreneurship Monitor 2012 Women’s Tran, Mark. “Ghana Mobile Firms Offer Free Insurance to Keep Report.” (2013): 1-58. Customers Hanging On.” Accessed June 2015. http://www. Larson, Christina. “How women lost out as China’s theguardian.com/global-development/2013/may/02/ property market boomed,” April 29,2014. Accessible on ghana-mobile-free-insurance Bloomberg Business. http://www.bloomberg.com/bw/ United Nations Women. “Progress of the World’s Women 2015 – articles/2014-04-29/how-chinas-women-lost-out-as-the- 2016: Transforming Economies, Realizing Rights.” (2015): 76. countrys-property-market-boomed Van den Brink-Muinen, Atie, Judith D. de Jong, Michelle Hendriks, Boonpraderm, A., C. K. Haddock, N. Jitnarin, N. Rojroongwasinkul, Peter Groenewege. “The Intention to Switch Health Insurer V. Kosulwat, W. S. C. Poston. “Prevalence of Overweight and Actual Switching Behavior: Are There Differences and Obesity in Thai Population: Results of the National Thai between Groups of People?” Health Expectations 13 No. 2 Food Consumption Survey.” Accessed June 2015.http://www. (2010): 195-207. ncbi.nlm.nih.gov/pubmed/22526130. VanderBrug, Jackie. “The Global Rise of Female Entrepreneurs.” Census of India. “Rural Urban Distribution of Population.” (2011). Harvard Business Review, September 4, 2013. CIA World Factbook. “Nigeria.” Washington, DC: Central Vodafone. “Connected Women: How Mobile can Support Intelligence Agency, 2015. Women’s Economic and Social Empowerment.” (2014): 1-35. von Bieberstein, Frauke, Jorg Schiller, and Kerstin Puchstein. “Can We Trust Consumer’s Survey Answers When Dealing with Insurance Fraud? Evidence from an Experiment.” (2014): 1-34. 170 ComScore. “Consumers in Brazil and Argentina Most Likely to International Labour Organization (ILO). “Women and Men in the Make Purchases Online, Females More Likely than Males Informal Economy — A Statistical Picture.” (2013). to Buy Online in Latin America.” Accessed June 2015.http:// International Monetary Fund (IMF). “Mexico: Detailed www.comscore.com/Insights/Press-Releases/2010/12/ Assessment of Observance of International Association comScore-Releases-Study-on-Latin-American-E- of Insurance Supervisors (IAIS) Insurance Core Principles.” Commerce-Landscape. (2012). Consejo Nacional de Inclusion Financiera. “2013 Mexico Insurance Jahan, M. Rehmath, and Dr. V. R. Palanivelu. “Women Report.” (2013). Entrepreneurship in the Context of Gender Competitiveness, The Economist. “Country Forecast.” The Economist Intelligence Unit Opportunities and Hurdles.“ International Conference on (2015). Arts, Economics and Management (ICAEM). March 22-23, 2014. The Economist. “On the Rise and Online” The Economist Intelligence Unit (2014): 1-34. Jaim, Teena. “Women Emerging as Star Insurance Agents.” Accessed June 2015. http://www.livemint.com/Money/ The Economist. “Women’s Entrepreneurial Venture Scope.” The TOHkoRVsjCng3dRIpQBPzK/Women-emerging-as-star- Economist Intelligence Unit (2013). insurance-agents.html. Euromonitor International. “World Consumer Income and Joglekar, Yogini. “Women Pulling Ahead of Men as Insurance Expenditure Patterns 2014.” 13th Edition (2013): 1-9. Agents.” Accessed June 2015. http://www.dnaindia.com/ Ferreira, Francisco H. G., Jamele Rigolini, Julian Messina, Luis- money/report-women-pulling-ahead-of-men-as- Felipe López-Calva, Maria Ana Lugo, and Renos Vakis. insurance-agents-1592843. “Economic Mobility and the Rise of the Latin American Kohli, Gauri. “Growth Insured — A Close look at the Indian Middle Class.” World Bank eLibrary (2013). doi: 10.1596/978-0- Industry.” Accessed June 2015. http://info.shine.com/article/ 8213-9634-6. growth-insured-a-close-look-at-the-indian-insurance- Garand, Denis, Denise Dias, and Donna Swiderek. “Towards industry/8812.html. Inclusive Insurance In Nigeria.” (2013). KPMG. “Sector Report: Insurance in Africa,” (2015) Gilman, Douglas B., and Sandra Lawson. “The Power of the Purse: Kress, Daniel, and Jennifer Prah Ruger. “Health Financing and Gender Equality and Middle-Class Spending.” (2009): 1-25. Insurance Reform in Morocco.” (2007). Global Banking Alliance for Women. “May 2015 Newsletter.” Krungsri Credit Cards. “Krungsri Lady Titanium MasterCard.” (2015): 1-4. Accessed June 2015. http://www.krungsricard.com/ “The Global Gender Gap Report.” World Economic Forum Insight kccstatic/en/creditcard_lady_titanium.html Report (2008, 2014). Mallen, Patricia Rey. “Diabetes Affects Almost 50 Percent of Global Health Workforce Alliance. “The Morocco Country Case Mexicans, Costs the Government $44B A Year.” International Study: Positive Practice Environments.” Accessed June 2015. Business Times, February 28, 2014. http://www.who.int/workforcealliance/knowledge/PPE_ Mukerji, Chandralekha. ”Budget 2015: Inexpensive Health, Morocco_CaseStudy.pdf. Accident, Pension and Life Insurance for All.” The Economic Gomez, Eduardo J. “In Brazil, Health Care is a Right. “ CNN, July 13, Times, February 28, 2015. 2012. Munich Re Economic Research. ”Insurance Market Outlook.” Hotchkiss, D., et al. “Household Health Expenditures in Morocco: (2015). Implications for Health Care Reform.” (1999): 1-13. Munich Re Foundation. “10th International Microinsurance Insurance Research Center. “India: Proportion of Women Life Conference.” Accessed June 2015. www. Insurance Agents Rise.” Accessed June 2015. http://www.irc. microinsuranceconference.org/2014. ac.ir/en/news/news.php?newsid=273. “New Laws Seen Boosting Maghreb Insurance Sector.” Thomson International Finance Corporation (IFC). “Banking Reuters: Zawya, August 11, 2014. on Women: Access Bank, Nigeria.” Accessed Noyes, Katherine. “How Turkey Hopes to Help Women-led June 2015. http://www.ifc.org/wps/wcm/ Businesses,” Fortune, November 19, 2014. connect/06d00080488553aeaffcff6a6515bb18/CaseStudy_ Nigeria_D5.pdf?MOD=AJPERES&CACHEID= Nwaebuni, Rose. “Nigeria: A Difficult Place to be a Widow.” The 06d00080488553aeaffcff6a6515bb18. Africa Report, November 27, 2013. International Finance Corporation (IFC). “Micro, Small and Only Insurance. “Life Insurance — Indian Women Have Little Medium Enterprises Finance Improving Access to Finance or No Life Insurance.” Accessed June 2015. http://www. for Women-owned Business in India.” (2014): 1-48. onlyinsurance.com/Life-Insurance/Indian-women-have- little-or-no-life-insurance.aspx. International Labour Organization (ILO). “ILO Social Security Inquiry; Indicator: Old-Age Pensioners Recipient Ratio Organisation for Economic Co-operation and Development Above Retirement Age.” (2013). (OECD). “Pensions at a Glance Asia/Pacific 2011.” Accessed June 2015. http://www.oecd.org/els/public- pensions/49454202.pdf. 171 Organisation for Economic Co-operation and Development Women’s World Banking, Zurich Insurance Company, ILO (OECD). “Women and Financial Literacy: OECD/INFE Microinsurance Innovation Facility, and the Swiss Evidence, Survey and Policy Response.” (2013). Development Cooperation. “Microinsurance that Works for Women: Making Gender-Sensitive Microinsurance Parulekar, Chandrakant V., and Harshal T. Pandve. “Health Programs.” (2009): 1-37. Insurance: Is Indian Rural Population Aware?” Accessed June 2015. http://www.ncbi.nlm.nih.gov/pmc/articles/ World Bank Group. “Enhancing Financial Capability and Inclusion PMC3783668/. in Morocco: A Demand-Side Assessment.” (2014): 1-83. Paxton, J. “Subsistence Savings Strategies of Male- and Female- World Bank Group. “Enterprise Surveys: China.” Accessed Headed Households: Evidence from Mexico.” (2009): 1-23. June 2015. http://www.enterprisesurveys.org/data/ exploreeconomies/2012/china. Qualcomm Wireless ReachTM, Vital Wave, and Groupe Speciale Mobile Association (GSMA) mWomen. “Transforming World Bank Group. “Global Findex Database 2014: Measuring Women’s Livelihoods through Mobile and Broadband: Financial Inclusion around the World; Indicator: Coming A Study on the Value of Mobile Broadband for Working up with Emergency Funds: Not at All Possible, Female Women in the Developing World.” (2014): 1-35. (% age 15+) [w2], Coming up with Emergency Funds: Not Very Possible, Female (% age 15+) [w2], Coming up with Ray, Aparajite. “It’s Houseful in Old-age Homes.” The Times of Emergency Funds: Not at All Possible, Male (% age 15+) [w2], India, October 24 2014. Coming up with Emergency Funds: Not Very Possible, Male Sahay, Kamalji. “About Time Insurers Unlocked Women Power. “ (% age 15+) [w2].” World Bank Global Findex (2014). The Financial Express, May 4, 2014. World Bank Group. “Global Findex Database 2014: Measuring Shirgaokar, Manish. “The Rapid Rise of Middle-Class Vehicle Financial Inclusion around the World; Indicator: Ownership in Mumbai.” (2012). Outstanding Loans in % of Females, 15+.” World Bank Global Sinha, Shishir. “Govt. Announces Details of New Insurance, Findex (2014). Pension Schemes.” The Hindu Business Line, March 2, 2015. World Bank Group. “Global Findex Database 2014: Measuring “The Sky’s the Limit,” The Economist, November 26, 2011. Financial Inclusion around the World; Indicator: Personally Paid for Health Insurance, Female, 15+.” World Bank Global Swiss Re. “World Insurance in 2013: Steering Towards Recovery.” Findex (2014). Sigma No. 3 (2014): 1-47. World Bank Group. “Thailand: Sustaining Health Protection for Teledirect Telecommerce. “Comparison Sites Starting to Make All.” Accessed June 2015. http://www.worldbank.org/en/ Waves in Asia.” Accessed June 2015. http://teledirect.com.sg/ news/feature/2012/08/20/thailand-sustaining-health- comparison-sites-starting-to-make-waves-in-asia/ protection-for-all. Tingting, Chen and Kate Bollinger. “Leveling the Playing Field for World Bank Group. “Turkey On the Way of Universal Health China’s Migrant Women Entrepreneurs.” Accessed June 2015. Coverage Through the Health Transportation Program http://asiafoundation.org/in-asia/2014/12/03/leveling-the- (2003-2013) (English).” (2015): 1-34. playing-field-for-chinas-migrant-women-entrepreneurs/. World Bank Group. “World Bank Group — Turkey Partnership: Unilever. “For Rojamma, Project Shakti Means Being Able to Country Program Snapshot.” (2015): 1-50. Educate Her Daughters.” Accessed June 2015. http://www. unilever.com/Images/es_Project_Shakti_tcm13-387473_ World Bank Group. “World Development Indicators 2013; tcm244-409741.pdf. Indicator: Labor force participation rate, female (% of female population ages 15+).” World Bank Global Findex (2013). United Nations Development Program, and Institute for Urban and Environmental Studies, Chinese Academy of Social World Bank Group. “World Development Indicators; Indicator: Sciences. “China National Human Development Report Mortality rate, under-5 (per 1,000 live births).” UN Inter- 2014.” China Publishing Group Corporation (2013). http:// Agency Group for Child Mortality Estimation (2014). www.cn.undp.org/content/dam/china/docs/Publications/ World Bank Group. “World Development Indicators; Indicator: UNDP-CH_2013%20NHDR_EN.pdf. Poverty Headcount Ratio at National Poverty Lines (% of Vinesh. “Role of Women Entrepreneurs in India.” Global Journal of population).” World Bank Poverty Working Group (2014). Finance and Management Vol. 6 No. 5 (2014): 473-480. World Bank Group. “World Development Indicators; Indicator: Visa. “International Barometer of Women’s Financial Literacy.” Rural Population (% of total population).“ United Nations, Accessed June 2015. http://www.practicalmoneyskills.com/ and World Urbanization Prospects. (2014). resources/barometer.php. Yu, Daniela, and Yamini Tandon. “India’s Big Problem: Nurturing Webster, Paul Christopher. “Health in Colombia: A System in Entrepreneurs.” Gallup, August 1, 2012. Crisis.” Accessed June 2015. http://www.ncbi.nlm.nih.gov/ pmc/articles/PMC3314050/. 172 Annex E: Endnotes 1. Ernst and Young, “High Achievers: Recognizing the Power of 19. Walter H. Zultowski, “The Changing Middle Market for Life Women to Spur Business and Economic Growth,” (2013). Insurance in China,” Society of Actuaries, (2014): Schaumburg, Illinois. 2. Phil Borges, “Women Empowered: Inspiring Change in the Emerging World,” (2007). 20. Individual health insurance only covers additional health insurance purchased by women. It does not include 3. Including spend by those who are self-employed. government and employee benefits. 4. E.g., figures do not include women covered under employer 21. Ronald Gordeon, Tian Xu and Lorry Xie, “Brazil’s Health life or health plans. Insurance,” 2012, http://assets.ce.columbia.edu/pdf/actu/ 5. Ernst and Young, “High Achievers: Recognizing the Power of actu-brazil.pdf Women to Spur Business and Economic Growth,” (2013): 22. World Health Organization, “Global Health Expenditure 1-12. http://www.ey.com/Publication/vwLUAssets/Women_ Database,” accessed April 2015. http://apps.who.int/nha/ the_next_emerging_market/$FILE/ database. WomenTheNextEmergingMarket.pdf. 23. Munich Re Economic Research, “Insurance Market Outlook,” 6. The relationship between labor force participation, (2015). education, and income also varies greatly by market depending on the cultural and social role of women, and 24. Swiss Re, “Keeping Healthy in the Emerging Markets: needs to be examined on an individual country level. Insurance can Help,” Sigma, no 1, (2015). 7. Only individual spend is calculated — the market size does 25. Defined as Property and Casualty (P&C) insurance not include commercial lines (e.g., women covered under 26. World Health Organization, “Global Health Expenditure employer plans), insurance spend by women on others (e.g., Database,” accessed April 2015, http://apps.who.int/nha/ spend on children), insurance purchase women may have database. influence over, or public spending on insurance for women. 27. Munich Re Economic Research, “Insurance Market Outlook.” 8. Swiss Re, “World Insurance in 2013: Steering Towards (2015) — Note: CAGR projections are for 2015 – 2016. Recovery,” Sigma, no 3, (2014): 1-47. 28. Swiss Re, “Keeping Healthy in the Emerging Markets.” 9. Calculated using data from: Munich Re Economic Research, “Insurance Market Outlook,” (2015): 1-4. 29. Women’s independence and income may not rise in all markets — sociocultural conditions of the market need to be 10. For more information on the description of baseline and taken into account when projecting growth of the non-life opportunistic growth, please see Appendix C: Detailed market. Methodology. 30. Comparisons between the women’s non-life and overall 11. The 10 emerging markets of focus are: Brazil, China, non-life market must be done with caution. In the non-life Colombia, India, Indonesia, Mexico, Morocco, Nigeria, market, it is the underlying asset that is insured; therefore Thailand, and Turkey. households may share assets with only one policy holder. 12. Swiss Re, “World Insurance in 2013: Steering Towards 31. Tertiary education enrollment rate for women in Brazil Recovery,” Sigma, no 3, (2014). remained constant. 13. Baseline growth — growth from projected market-specific 32. Sandra Lawson, “Women Hold up Half the Sky,” Goldman improvements in women’s socioeconomic conditions; see Sachs Global Economics Paper no 164, (2008): 1 – 16. Annex C: Detailed Methodology. 33. Ibid 14. Opportunistic growth — assumes successful efforts in targeting more women to purchase insurance and in 34. OECD, “Women and Financial Literacy: OECD/INFE upselling/cross-selling more products to each woman; see Evidence, Survey and Policy Response,” Financial Literacy and Annex C: Detailed Methodology. Education Russia Trust Fund, (2013). 15. Calculated using data from: Munich Re Economic Research,” 35. UN Women, “Progress of the World’s Women 2015 – 2016: Insurance Market Outlook.” Transforming Economies, Realizing Rights,” 2015: 76. 16. Swiss Re, “World Insurance in 2013: Steering Towards 36. Female labor force participation rates for China, Colombia, Recovery,” Sigma, no 3, (2014). and India have decreased, while rates for Indonesia, Nigeria, and Thailand have remained the same. 17. Ibid 37. IFES and IWPR, “Focus on Morocco: Paid Work and Control 18. Anjali Banthia, Susan Johnson, Michael J. McCord, and of Earnings & Assets Topic Brief,” The Status of Women in the Brandon Mathews, “Microinsurance That Works for Women: Middle East and North Africa, (2010): 1 – 15. Making Microinsurance Programs Gender-Sensitive,” Microinsurance Paper no 3, (2011): 1 – 33. 38. Ibid 173 39. PriceWaterhouseCoopers, “Employee Benefits preference 58. Bain and Company, “Customer Loyalty and the Digital varies according to gender and age: PwC research,” (2015). Transformation in P&C and Life Insurance: Global Edition 2014,” Global Insurance Loyalty (2014). http://www.bain.com/ 40. Sylvia Ann Hewlett, “Why Women are the Biggest Emerging Images/DIGEST_Customer_loyalty_and_the_Digical_ Market,” Harvard Business Review, March 8, 2010. https://hbr. transformation_in_insurance.pdf. org/2010/03/leverage-your-female-demograph/. 59. Andrew Osterland, “Female Clients more Likely than Men to 41. World Bank. “The World Development Report 2012: Gender Make Referrals,” Investment News, April 24, 2014. http:// Equality and Development,” (2012): 150 – 182. www.investmentnews.com/article/20120424/ 42. Ibid FREE/120429972/female-clients-more-likely-than-men-to- 43. Sandra Lawson and Douglas B. Gilman, “The Power of the make-referrals. Purse: Gender Equality and Middle-Class Spending,” Goldman 60. Sylvia Ann Hewlett, Andrea Turner Moffitt with Melinda Sachs Global Market Institute, (2009): 1-22. Marshall, “Harnessing the Power of the Purse: Female 44. Sandra Lawson and Douglas B. Gilman, “The Power of the Investors and Global Opportunities for Growth,” Center for Purse: Gender Equality and Middle-Class Spending,” Goldman Talent Innovation (2015): 1-9. http://www.talentinnovation. Sachs Global Market Institute, (2009). org/_private/assets/HarnessingThePowerOfThePurse_ ExecSumm-CTI-CONFIDENTIAL.pdf 45. Heeju Shin, “Female-headed Households, Living Arrangements and Poverty in Mexico,” (PhD diss. University 61. Yogini Joglekar, “Women Pulling Ahead of Men as Insurance of Texas at Austin, 2012). http://repositories.lib.utexas.edu/ Agents,” DNAIndia, September 29, 2011. http://www.dnaindia. handle/2152/17907. com/money/report-women-pulling-ahead-of-men-as- insurance-agents-1592843 46. Assupol, “Women and Insurance — an Assupol Perspective,” (2014). 62. Insurance Research Center, “India: Proportion of Women Life Insurance Agents Rise,” (2011). http://www.irc.ac.ir/en/ 47. Ibid news/news.php?newsid=273 48. Blackrock, “Men vs Women: Risk Aversion,” NASDAQ, 63. Joglekar, “Women Pulling Ahead of Men as Insurance November 6, 2014, accessed July 2015, http://www.nasdaq. Agents.” com/article/men-vs-women-risk-aversion-cm297364 64. Esther Duflo, “Women Empowerment and Economic 49. Barclays Wealth, “Barclays Wealth Insights — Volume 2: A Development.” Journal of Economic Literature Vol. L, December Question on Gender,” (2007). 2012. 50. Felix Salmon, “Charts of the day: female risk-aversion 65. VanderBrug, “The Global Rise of Female Entrepreneurs.” edition,” Reuters, February 24, 2014, accessed July 2015 http://blogs.reuters.com/felix-salmon/2014/02/24/charts- 66. Hewlett, Moffitt with Marshall, “Harnessing the Power of of-the-day-female-risk-aversion-edition/ the Purse: Female Investors and Global Opportunities for Growth.” 51. Barbra Stewart, “Women are Risk Aware — not Risk Adverse,” The Edmonton Sun, November 5, 2013, accessed April 67. Michael Silverstein, Kosuke Kato and Pia Tischhauser, 2015, http://www.edmontonsun.com/2013/11/05/women- “Women Want More (in Financial Services),” Boston are-risk-aware----not-risk-averse. Consulting Group Opportunities for Action, (2009). https:// www.bcg.com/documents/file31680.pdf. 52. Kerstin Puchstein, Jorg Schiller, and Frauke von Bieberstein, “Can We Trust Consumer’s Survey Answers When Dealing 68. Michael Silverstein and Kate Sayer, “The Female Economy,” with Insurance Fraud? Evidence from an Experiment,” Harvard Business Review, September, 2009. https://hbr. Universität Bern, (2014): 1-34. org/2009/09/the-female-economy 53. Accenture, “The Digital Insurer Claims Customer Survey: 69. Savita Iyer-Ahrestanim “Room to Grow: How Advisors’ Why Claims Services Matter,” (2014). Approach to Women Might Hurt their Business,” Think Advisor, September 30, 2013. http://www.thinkadvisor. 54. Ibid. com/2013/09/30/room-to-grow-how-advisors-approach- 55. Puchstein, Schiller, and Bieberstein. “Can we trust to-women-might consumer’s survey answers when dealing with insurance 70. Accenture, “Why Claims Services Matter.” fraud?” (2014). 71. World Bank. “The World Development Report 2012: Gender 56. Accenture, “Why Claims Services Matter.” Equality and Development,” (2012): 80 - 82 57. Michelle Hendriks, Judith D. de Jong, Atie van den Brink- 72. Deanna Chitayat, “Gender Equality in Caregiving: The United Muinen, Peter Groenewegen, “The Intention to Switch Nations Response,” American Psychological Association, Health Insurer and Actual Switching Behavior: Are There Psychology International Newsletter, July, 2009. http://www. Differences between Groups of People?” Health Expectations apa.org/international/pi/2009/07/un-gender.aspx 13 no. 2, (2010): 195-207. 73. MetLife, “Latin American Employee Benefits Trends Study,” (2015). https://www.metlife.com/assets/institutional/ products/benefits-products/LATMAReport_10_17A.pdf 174 74. Kalyani Mehta, “Stress among Family Caregivers of Older 92. Banthia, Johnson, McCord, and Mathews, “Microinsurance Persons in Singapore,” J Cross Cult Gerontol 20, no 4 (2005): That Works for Women: Making Microinsurance Programs 319-334. Gender-Sensitive.” 2009. 75. Anna Gincherman, “Designing Women Focused Financial 93. Hilary Nichols, “A Must-Have when Launching Insurance in Products — Women’s World Banking’s Approach,” Women’s Uganda: Consumer Education,” Women’s World Banking, World Banking, published on December 12, 2013. http://www. February 16, 2015. http://www.womensworldbanking.org/ slideshare.net/womensworldbanking/anna-gincherman news/blog/must-launching-insurance-uganda-consumer- education/ 76. Rose Nwaebuni, “Nigeria: A Difficult Place to be a Widow,” The Africa Report, November 27, 2013. http://www. 94. Intel, “Women and the Web: Bridging the Internet gap and theafricareport.com/West-Africa/nigeria-a-difficult-place- creating new global opportunities in low and middle-income to-be-a-widow.html countries,” (2012): 10 – 100. 77. Gincherman, “Designing Women Focused Financial 95. GSMA, “Bridging the Gender Gap: Mobile access and usage Products.” in low and middle-income countries,” Connected Women 2015, (2015): 1-118. 78. Accenture, “Why Claims Services Matter.” 96. Vodafone, “Connected Women: How mobile can support 79. Michael Silverstein and Kate Sayer, “The Female Economy,” women’s economic and social empowerment,” (2014): 1-35. Harvard Business Review, September, 2009. https://hbr. org/2009/09/the-female-economy 97. IFC, “Strengthening Access to Finance for Women-Owned SMEs in Developing Countries,” (2011): 6-62. 80. Michael Silverstein, Kosuke Kato and Pia Tischhauser, “Women Want More (in Financial Services),” Boston 98. Fletschner and Kenney, “Rural Women’s Access to Financial Consulting Group Opportunities for Action, (2009). https:// Services.” www.bcg.com/documents/file31680.pdf. 99. International Labour Organization, “Gender and 81. Michael Silverstein, Kosuke Kato and Pia Tischhauser, employment.” Accessed June 2015. “Women Want More (in Financial Services),” Boston 100. Asli Demirguc-Kunt, Leora Klapper, Dorthe Singer, Peter Van Consulting Group Opportunities for Action, (2009). https:// Oudheusden, “The Global Findex Database 2014: Measuring www.bcg.com/documents/file31680.pdf Financial Inclusion around the World,” The World Bank Group, 82. OECD, “Financial Literacy and Inclusion: Results of OECD/ Policy Research and Working Paper no 7255, (2015): 10-71. INFE Survey Across Countries and by Gender,” Financial 101. Accenture, “Succeeding at Microinsurance through Literacy and Education Russia Trust Fund, (2013). differentiation, Innovation and partnership,” (2012): 1-18. 83. Ibid 102. IFC, “Microinsurance Has Potential to Become $50 Billion 84. International Monetary Fund, “Detailed Assessment of Market,” Financial Institutions Industry News and Events, June 3, Observance of International Association of Insurance 2011. http://www.ifc.org/wps/wcm/connect/industry_ext_ Supervisors (IAIS) Insurance Core Principles,” IMF Country content/ifc_external_corporate_site/industries/ Reports, no 12 – 13, (2012 – 2013). financial+markets/news/microinsurance+ has+potential+to+become+$50+billion+market+. 85. Accenture, “Why Claims Services Matter.” 103. Banthia, Johnson, McCord, and Mathews, “Microinsurance 86. Michael Silverstein, Kosuke Kato and Pia Tischhauser, That Works for Women: Making Microinsurance Programs “Women Want More (in Financial Services),” Boston Gender-Sensitive.” Consulting Group Opportunities for Action, (2009). https:// www.bcg.com/documents/file31680.pdf. 104. Bert D’Espallier, Isabelle Guérin, and Roy Mersland, “Women and Repayment in Microfinance,” Working Paper (2009): 1-24. 87. IFES and IWPR, “Focus on Morocco: Paid Work and Control http://www.microfinancegateway.org/sites/default/files/ of Earnings & Assets Topic Brief,” mfg-en-paper-women-and-repayment-in-microfinance- 88. Diana Fletschner and Lisa Kenney, “Rural Women’s Access to mar-2009_0.pdf. Financial Services: Credit, Savings and Insurance,” The 105. Banthia, Johnson, McCord, and Mathews, “Microinsurance Agricultural Development Economics Division ESA Working Paper That Works for Women: Making Microinsurance Programs no11-07, (2011): 1-22. Gender-Sensitive.” 89. Anna Rappaport, “Key Retirement Concerns and Planning 106. Allegra Palmer, “An Unintended Secret: Microinsurance in Tips for Women,” Forbes Investing, April 2015. http://www. Morocco,” Women’s World Banking, May 19, 2014. https:// forbes.com/sites/pensionresearchcouncil/2015/04/08/ www.womensworldbanking.org/news/blog/unintended- retirement-planning-key-but-under-recognized-concerns- secret-microinsurance-morocco/ for-women/ 107. Ibid 90. Sandra Lawson and Douglas B. Gilman, “The Power of the Purse: Gender Equality and Middle-Class Spending,” Goldman Sachs Global Market Institute, (2009). 91. Heeju Shin, “Female-headed Households, Living Arrangements and Poverty in Mexico.” 175 108. Lloyds, “Factsheet: Insurance and Growth,” Lloyd’s Global 127. IFC, “Strengthening Access to Finance for Women-Owned Underinsurance Research, (2012). https://www.lloyds.com/~/ SMEs in Developing Countries.” media/files/news%20and%20insight/global%20 128. Banthia, Johnson, McCord, and Mathews, “Microinsurance underinsurance%20report/factsheets/the%20role%20of%20 That Works for Women: Making Microinsurance Programs insurance%20industry.pdf Gender-Sensitive.” 109. Ernst and Young, “Women: The Next Emerging Market,” 129. Intesa SanPaolo, “Pollizza Business Gemma,” Intesa SanPaolo, (2013). accessed April 2015. http://www.intesasanpaolo.com/ 110. Donna J. Kelley, Candida G. Brush, Patricia G. Greene and tutela-piccole-imprese/polizza-business-gemma.jsp. Yana Litovsky, “Global Entrepreneurship Monitor: 2012 130. Ibid Women’s Report,” Global Entrepreneurship Research Association, (2012): 6. 131. European Commission, “Statistical Data on Women Entrepreneurs in Europe,” EU Director-General for Enterprise 111. IFC, “Strengthening Access to Finance for Women-Owned and Industry, (2014). SMEs in Developing Countries.” 132. Intesa SanPaolo, “Annual Report 2014,” March 17, 2014; p. 93, 112. Ibid 143. 113. World Bank Group, “Supporting Growth-Oriented Women 133. Intesa SanPaolo, “Social Report on Customers 2012,” (2012). Entrepreneurs: a Review of the Evidence and Key http://group.intesasanpaolo.com/scriptIsir0/si09/ Challenges,” Innovation, Technology and Entrepreneurship Policy contentData/view/Clienti_en.pdf?id=CNT-04- Note no 5, (2014). 000000012C5D7&ct=application/pdf. 114. Kelley, Brush, Greene and Litovsky, “Global Entrepreneurship 134. Oliver Wyman and Insurance Europe. “Funding the future Monitor: 2012 Women’s Report.” Insurers’ role as institutional investors,” June 2013. 115. ILO, “Small premiums, long-term benefits: Why poor women 135. Goldman Sachs, Economic Opportunity for Women. need microinsurance,” World of Work Magazine no 69, Accessible at: http://www.goldmansachs.com/our-thinking/ August, 2010: 31-33. pages/access-to-capital-for-women-entrepreneurs. 116. Banthia, Johnson, McCord, and Mathews, “Microinsurance html?CID=PS_01_19_07_00_00_00_01 Accessed June 2015. That Works for Women: Making Microinsurance Programs 136. In the EU, legislation prohibits price discrimination by Gender-Sensitive.” gender. 117. Sarah Bel and Craig Churchhill, “Using Insurance to Drive 137. World Health Organization, “Falls” WHO Media Center Fact Trade,” International Trade Forum Magazine, April 2012. http:// Sheet n 344, (2012). http://www.who.int/mediacentre/ www.tradeforum.org/article/Using-insurance-to-drive- factsheets/fs344/en/ trade/ 138. Porto Seguro, “Seguro Auto Mulher,” Porto Seguro, accessed 118. Candida Brush, “How Women Entrepreneurs Are April 2015. http://www.portoseguro.com.br/seguros/seguro- Transforming Economies and Communities,” Forbes de-veiculos/seguro-de-automovel/linha-de-produtos/ Entrepreneurs, February 16, 2013. http://www.forbes.com/ seguro-auto-mulher. sites/babson/2013/02/16/how-women-entrepreneurs-are- transforming-economies-and-communities/ 139. Accenture, “Insurers Commit to Digital Transformation as a Lever of High Performance,” 2013 Digital Insurance Survey: 119. The International Finance Cooperation, “Women-Owned Europe, Latin America and Africa, (2013): 3-22. SMEs: A Business Opportunity for Financial Institutions,” 2014. 140. Alpesh Shah and Burjor Dadachanji, “Insurance @ Digital — 20X by 2020,” Boston Consulting Group and Google, (2014): 5-13. 120. Bangladesh, Brazil, China, Egypt, India, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Republic of Korea, 141. ComScore, “Women on the Web: How Women are Shaping Russia, Turkey, and Vietnam the Internet,” (2010): 3-30. 121. DeAnne Aguirre, Leila Hoteit, Christine Rupp and Karim 142. IFC, “Strengthening Access to Finance for Women-Owned Sabbagh, “Empowering the Third Billion: Women and the SMEs in Developing Countries.” World of Work in 2012,” PwC and Strategy&, (2012): 3-11. 143. Mark Tran, “Ghana Mobile Firms Offer Free Insurance to 122. IFC, “Women-Owned SMEs: A Business Opportunity for Keep Customers Hanging On,” The Guardian, May 2, 2014. Financial Institutions.” http://www.theguardian.com/global-development/2013/ may/02/ghana-mobile-free-insurance 123. Ibid 144. Qualcomm Wireless ReachTM, Vital Wave, and GSMA, 124. Ibid “Transforming Women’s Livelihoods through Mobile and 125. IFC, “Strengthening Access to Finance for Women-Owned Broadband: a Study on the Value of Mobile Broadband for SMEs in Developing Countries.” Working Women in the Developing World,” February, 2014. http://www.qualcomm.com/mwomenreport 126. Kelley, Brush, Greene and Litovsky, “Global Entrepreneurship Monitor: 2012 Women’s Report.” 145. Kaspersky Lab, “Consumer Security Risks Survey 2014: Multi-Device Threats in a Multi-Device World,” (2014). 176 146. ComScore, “Women on the Web: How Women are Shaping 162. Central Intelligence Agency, “The World Factbook 2013 – the Internet.” 2014.” 147. Accenture, “Why Claims Services Matter.” 163. International Labour Office, “ILO Social Security Inquiry; Indicator: Old-Age Pensioners Recipient Ratio Above 148. Fletschner and Kenney, “Rural Women’s Access to Financial Retirement Age,” Social Security Database, updated June 4 Services.” 2014, accessed April 2015. http://www.ilo.org/dyn/ilossi/ 149. Allianz, Bajaj Allianz promoting women’s careers, Accessed ssiindic.viewMultiIndic3?p_lang=en&p_indicator_code=CR- June 2015. https://www.allianz.com/en/press/news/ 1f%20OA. company/human_resources/news_2014-01-09.html/ 164. Based on discussions with various insurance market experts. 150. BS Reporter, “After All Women Bank, Now All Women 165. Euromonitor International, “World Consumer Income and Insurance Branch,” Business Standard, January 3, 2014. http:// Expenditure Patterns 2014,” 13th edition, (2013). www.business-standard.com/article/finance/after-all- women-bank-now-all-women-insurance- 166. Ibid branch-114010300875_1.html 167. World Economic Forum, “The Global Gender Gap Report,” 151. Nippon Life Insurance, “Annual Report 2014,” March 31, 2014: Insight Report, (2008 and 2014). p. 32 -33. 168. OECD, “Net Pension Replacement Rates,” Pension Entitlement 152. Tara Siegel Bernard, “Financial Advice by the Demographics,” Database, updated November 2013, accessed April 2015. The New York Times, February 20, 2015. http://www.nytimes. http://www.oecd.org/els/public-pensions/indicators.htm. com/2015/02/21/your-money/financial-advice-customized- 169. International Labour Organization, “Estimates and by-sex-ethnicity-or-demographics.html?mwrsm=Email&_ Projections of the Economically Active Population (EAPEP).” r=0 170. United Nations, “Population,” World Population Prospects: the 153. OECD, “Women and Financial Literacy.” 2012 Revision Database, updated 2012, accessed April 2015. 154. Impact Insurance “What is microinsurance?” Accessed June http://esa.un.org/wpp/unpp/panel_population.htm. 2015. Accessible at: http://www.impactinsurance.org/about/ 171. World Economic Forum, “The Global Gender Gap Report.” what-is-microinsurance 172. International Labour Organization, “Estimates and 155. Accenture: Succeeding at Microinsurance through Projections of the Economically Active Population (EAPEP).” differentiation, Innovation and partnership, January 2012. 173. Calculated using data from: Munich Re Economic Research, 156. Jeanna Holtz, Principal Associate, Abt Associates’ “Insurance Market Outlook,” (2015): 1-4. International Health Division. “Insurance and Healthcare Needs in Dev Countries,” 2014. 174. United Nations, “Population.” 157. Investopedia.com “Unit Linked Insurance Plan- ULIP,” 175. Calculated using data from: Munich Re Economic Research, Accessed June 2015. “Insurance Market Outlook.” 158. McKinsey & Company, “Global Insurance Industry Insights: 176. World Economic Forum, “The Global Gender Gap Report.” An in Depth Perspective,” Global Insurance Pools fourth 177. Swiss Re, “World Insurance in 2013: Steering Towards edition, (July 2014). Recovery,” Sigma, no 3, (2014): 1-47. 159. International Labour Organization, “Estimates and 178. Ibid. Projections of the Economically Active Population (EAPEP),” 2013 Edition, updated July 2013, accessed April 2015, http:// laborsta.ilo.org/applv8/data/EAPEP/eapep_E.html. 160. Select sources include: Metlife, “Measuring Financial Inclusion in Turkey,” Focus on Inclusion, (2014). Center for Financial Inclusion, “Mexico’s Prospects for Full Financial Inclusion,” A White Paper from the Financial Inclusion 2020 Project, (September 2009). Rosemary Onuoha, “Only one out of ten Nigerians has Insurance,” Vanguard, September 02, 2013, http://www.vanguardngr.com/2013/09/only-one-out- of-ten-nigerians-has-insurance-noi-polls/ Kamalji Sahay, “About Time Insurers Unlock Women Power,” The Financial Express, May 4, 2015, accessed May 2015. http://www. financialexpress.com/article/personal-finance/about-time- insurers-unlocked-women-power/69405/ 161. Central Intelligence Agency, “The World Factbook 2013 – 2014,” (2013), Washington, DC, accessed April 2015. https:// www.cia.gov/library/publications/the-world-factbook/ index.html. 177 PHOTO CREDITS Pg 14 IFC Pg 43 Oddvar Paulsen/CGAP Pg 46 Bancamía/IFC Pg 92 Narayan Debnath/DFID Pg 95 Curt Carnemark/World Bank Pg 105 Curt Carnemark/World Bank 178 SEPTEMBER 2015