Magazine date:
May 2013 The renewal of microinsurance policies has revealed many challenges, especially in rural areas. Illiteracy, lack of awareness about insurance, language barriers, lack of infrastructure and low traceability of the insured are all challenges which increase coverage cost.
In order to overcome these problems, some insurers are marketing their products through networks of local brokers or partner banks. These measures have led to a drastic reduction in renewal costs up to 35%. They have also allowed Aviva to increase its revenues from 20% to 25% and maintain a loyalty rate of 70% within Bajaj Allianz.