Micro-insurance is one of the formal risk management mechanisms to protect the mass community from the effect of their potential financial risks. Micro-insurance product is specially designed for the lower income people for ensuring their risk coverage in exchange of affordable premium. So any one can enjoy insurance benefits under this mechanism who, generally, do not have access to the traditional insurance due to higher premium.
Micro insurance plays a vital role in the economic development of any country. Bangladesh is now under the process of graduating as developing country. So micro insurance can create a vital role to ensure inclusive growth and support the livelihood of the vulnerable segment of the society and facilitate the sustainable economic growth of this country
Why Micro insurance?
Because their resources are so limited, poor people can experience great financial disruption when unexpected events befall them. If a breadwinner is injured or falls ill, there is not only the loss of income and labor, but the prospect that without cash in advance there will no treatments at all. If a breadwinner dies, not only must funeral expenses be paid, but continued cash for basic needs and education of the family is required. A poor person’s property may be limited to a few animals or crops and modest shelter, but the destruction of any of these may be a great blow to the family’s economy. Even small sums insured can ensure some protection and peace of mind (and dignity) for a poor person.
From the point of view of insures, however, small sums insured mean small premiums and low profit margins. Thus micro insurance has to be well-administrated, cost efficient, and delivered on a large scale if it is to benefit the poor, and those who provide the micro insurance.
Guardian Life Micro-insurance
Being the largest Micro Insurer in Bangladesh Guardian Life Insurance Ltd. is covering more than 10 million lives under different micro-insurance propositions. These micro insurance products are being offered though partnership modality. The beneficiaries or members of the partner organization i.e. MFI, Bank etc., can enjoy the benefits of offered products with affordable premium. With continuous innovation, Guardian Life is planning to explore the partnership opportunities with different organizations through tagging micro-insurance product with their product & services.
Features of Guardian Life Micro-insurance
Credit Shield Micro-insurance
This policy has been designed for the micro credit holders of MFIs, Banks and the Non-Bank Financials (NBFIs) for protecting them from the effect of their potential financial risks
Saving Shield Micro-insurance
This policy has been designed for the micro savings holders of MFIs, Banks and the Non-Bank Financials (NBFIs) for protecting them from the effect of their potential financial risks
Guardian Brac Bima (GBB
GLIL in partnership with BRAC tried to develop a proposition that could meet the needs of the community. Promoting this scheme through a trusted intermediary had instant benefits; the initial take up rate skyrocketed to 61% in 2016 and 76% in 2017 through voluntary participation. Partnership with BRAC gave the scheme significant reach, the availability of this product increased from 20 branches in 2015 & 650 branches in 2016 under pilot phase to 2530 branches in 10 weeks. GLIL has worked in two folds when it comes to the operations management and efficient claim processing, delivering on both quantity and quality. GLIL also introduced BRAC Guardian Bima Web Portal to drive effectiveness and efficiency in claim processing.
Bank Asia Guardian Bima (BAG)
In 2019, Bank Asia & Guardian Life jointly initiated a credit shield product for the micro loan borrowers under Agent Banking channel of Bank Asia. Through this initiatives a large number of untapped community gets an opportunity to reside under the umbrella of insurance.
Guardian Eduman Insurance
To safeguard the precious education of millions of children across Bangladesh, Guardian Life Insurance Limited & Netizen IT jointly introduced an insurance solution “Guardian Eduman Insurance”. Eduman is a popular school management software of Netizen IT that covers over 5,000 educational institutions which includes 2 million+ students and 50,000+ teachers.
Under the scope of “Guardian Eduman Insurance”, the legal Guardians of 2 million+ students will be under insurance coverage for a nominal premium added to the monthly school fees. In case, if there is a sudden demise of any Guardian, there will be an immediate payout BDT 200,000 to cover the education expenses of the associated child. The teachers will also be under the coverage of this umbrella insurance, thus helping to secure the financial future of the Teachers’ families as well.
The whole user experience of Guardian Eduman Insurance is digital & integrated with the Eduman Software. Policy uptake, servicing along with claims are fully automated within the software.
Impact of Guardian Life Micro-insurance