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MILK Discussion Note #1: Doing the Math: Can Delayed Payment of Claims Erode the Value of Life Microinsurance?

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MILK Discussion Note #1: Doing the Math: Can Delayed Payment of Claims Erode the Value of Life Microinsurance?

One of the principal questions MILK seeks to answer is: Does microinsurance help protect people from large shocks (high cost events) in comparison to other alternatives? The problem in the Philippines shines a light on the subtleties at play in this question. If the cost of making a claim (in terms of getting documentation or “bridging” the financing need with other sources of funds) is too high, even potentially valuable products might offer low or no financial value to clients, who may have been better off turning to other financial sources or reducing expenditures significantly following the event.  MicroEnsure and MILK propose to "do the math" to determine the effects of slow claims payments.

File Name: 111027 DN#1 MILK - Client Math and Claims (2).pdf
File Type: application/pdf
Download: 1047 times
Created Date: 10-28-2011
Author: Barbara Magnoni and Rick Koven
Publisher: MicroInsurance Centre at Milliman

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"With microinsurance, you must think with your calculator, not with your heart." -- Aris Alip | CARD MRI

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