The first micro insurance product that was launched was Enhanced Credit Life. A typical credit life insurance provides protection against the death of a borrower and pays off any debt outstanding. Normally this product is available only to the well-off. The micro insurance product is available to all the group loan borrowers.
In micro insurance, there is no medical check-up and everything is applied based on the information disclosed by the insured. Even when a claim is made, it follows a streamlined method for prompt payment.
Micro insurance is made available through a business model that has primarily three components: Front Office, Back Office and Risk Carrier. In UOB's case, it is a little more complex with arrangements among UOB, MicroEnsure, SORAS and Hollard. Micro Ensure is the world's largest micro insurance broker, a member of Opportunity International Network, and provides the product design, administration and claim handling. SORAS is the second largest insurance company in Rwanda and provides the legal platform. Hollard is a South African insurance company that undertakes all the risks related to this transaction through a joint venture with Micro Ensure.
It is an Enhanced Credit Life insurance product, because:
1. it provides not only the payoff of any outstanding loan, but also funeral benefits for the remaining family if a borrower passes;
2. it also provides the funeral benefits on the deaths of a borrower's spouse and of up to four children;
3. it also provides a coverage on business properties when lost through fire.
UOB is also exploring the possibility of developing an insurance-tied savings product, an enhanced health insurance, mobile-banking-tied life insurance.
Micro Ensure has developed also Weather-Indexed Crop Insurance product in cooperation with Ministry of Agriculture of Rwanda. UOB has been actively involved in the product design and implementation phases.
We praised the good Lord who continues to use UOB as an instrument to bless the underprivileged people of Rwanda. - Jeffrey
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