Pricing for Microinsurance Location Date Trainer 1

Transcript:Pricing for Microinsurance Location Date Trainer 1:
Pricing for Microinsurance Location Date Trainer 1 email Trainer 2 email Opening session Session 1 Background This 3-day training workshop has been developed by the ILO’s Microinsurance Innovation Facility Based on a training needs assessment conducted in January 2012 Initial pilot in Accra in June 2012, in collaboration with the Actuarial Society of Ghana The training development was sponsored by AusAid The Facility is currently developing a corresponding technical guide Workshop Objective To provide participants with greater understanding of the pricing process To provide tools to improve the pricing of microinsurance products In this context, “better pricing” means: More accurate estimation of expected claims costs, even with limited data Better collection of experience data Better monitoring and evaluation systems to review and adjust pricing More suitable pricing for the low income market Specific Training Objectives By the end of the course, participants will be able to: Identify key context elements to be considered in pricing microinsurance Describe the pricing process and premium components Set and validate pricing assumptions based on relevant data Understand the calculations required for determining risk premiums, expense loadings and gross premiums Set appropriate monitoring processes for better pricing review Agenda Day 1 Opening Session Introduction to Pricing for Microinsurance Basic Concepts of Pricing Pricing Cycle/Process Context Understanding the Market / Initial Product Design Calculating the Risk Premium Methods and Formulas Collecting Data Setting Assumptions and Validating Results Application / Case Study Recap Agenda Day 2 Risk Premium Revisited Pricing Model Illustrations Risk Margins / Safety Loading Reinsurance Calculating the Gross Premium Expense Loadings Application / Case Study Business Plans and Financial Projections Putting it all together – Case Study work Day 2 Recap Agenda Day 3 Gross Premium Revisited Putting it all together Monitoring Product Experience Developing a monitoring process Review and Re-pricing Case study analysis Reserving Q&A Summary and closing Introduction to Pricing for Microinsurance Session 2 Reflection Questions Microinsurance vs “traditional” insurance How is microinsurance similar to traditional insurance? How is it different? What are some unique aspects of MI that should be considered in the pricing process? What is the role of the pricing specialist in a microinsurance context? Where does “pricing” fit in the product development process? Event resulting in loss must be random Loss must be definite and measurable, in terms of amount and time Economic loss should be significant for the insured Must be able to calculate the probability of