rowth outlook Economic rowth and a few key trends Žustained stron economic deveoment wi remain a key rowth driver for wi oost insurance enetration‡ insurance in ŽŽ‘ countries‡ Žome other emerin trends wi aso he raise enetration… incudin mo ie† ased and micro†insurance… innovative aricutura oicies and are infrastructure ro“ects‡ €obile-based and micro-insurance ˆhere has een fast rowth in micro† ‘ midde cass to suort the exansion of traditiona retai insurance is emerin insurance in ŽŽ‘ over the ast decade‡ ony very sowy in the ŽŽ‘ frontier markets‡ ˜ost eoe have very ow incomes and sma sums insured are very common in ersona ines of usiness‡ ‘s a consešuence… micro†insurance… ie… sime and fexi e insurance roducts with sma remiums… has een rowin very strony in ŽŽ‘ and is exected to continue to do so‡ Œommunity† ased mutua„ micro†insurance schemes are sti the most common form found on the continent‡ Increasiny… however… rofit†oriented comanies are aso rovidin micro†insurance roducts‡ ˆoday credit ife roducts are the most common… ut the rowth otentia for other roducts… articuary heath… is very are‡ ‘nd use of mo ie technooy wi e ¦ith very sma remiums… cost†efficient rovision of insurance via mo ie hones a key rowth area for insurers in ŽŽ‘‡ and other technooies €ƒŽ… sateite imain ena in index† ased roducts„ is key‡ ˆoday consumers can aready o tain šuotes… urchase insurance roducts and e issued oicies y insurers„… ay remiums and su mit caims usin asic mo ie hones‡ ˆhese mo ie† ased offers are often driven y non†insurance ayers ike mo ie hone oerators and technooy comanies‡ ˆwo of the arest technooy service roviders for mo ie micro insurance have reached 1™ aroximatey 2 miion customers com ined‡ ŽŽ‘ has taken the ead in insurance distri ution via asic mo ie hones… and survey evidence indicates that mo ie insurance is reachin many reviousy uninsured and ow†income consumers‡ ‘ survey undertaken across five countries in ‘frica and Žouth ‘sia in eary 2014 reveaed that ’¢ of the mo ie micro insurance consumers samed were ivin eow ¥Ž‚ 10 er erson er day‡ ”f those… ¢¢ never had any form of rivate 16 insurance reviousy… and 42 had no ank savins account‡ ¦ith the are ow† income ouation in ŽŽ‘… micro†insurance and articuary mo ie† ased insurance roducts… wi ecome a key focus to increasin the reach of insurance in the reion‡ Agriculture ‘ricuture insurance is aso rowin ‘ are share of the ouation in ŽŽ‘ works in aricuture… mosty in sma or famiy raidy … farms‡ ¥radin aricutura roduction is a centra o “ective of many nationa economic oicy rorams… and this wi ikey fiter throuh into stroner demand for aricutura insurance in the future‡ ‘ricutura insurance is a key financia safeuard for farmers… rotectin them aainst a oss of ivestock or harvest due to… for exame… drouht or foodin‡ ˆhese disasters can ruin a famiy which has ony a sma amount or no savins‡ ˆhus… u ic†rivate artnershis rovidin aricutura insurance are ecomin more ouar in ŽŽ‘‡ ˜any of the roducts use mo ie technooy to hande oicy administration and ay outs… and arametric triers to minimise the cost of caims assessment‡ … incudin an index† ased ivestock ˆhere are many aricutura insurance schemes in the frontier markets‡ ‘ recent insurance scheme in ±enya‡ exame of innovation is the ±enyan ›ivestock Insurance ƒroram ±›Iƒ„… which has een test†ioted since autumn 201™… and which the overnment ans to ro out across ±enya’s 14 counties‡ ±›Iƒ works as an index† ased ivestock insurance scheme… usin the NormaiŠed ‚ifference ªeetation Index N‚ªI„… which measures ant “reenness” or hotosynthetic activity‡ ˆhe N‚ªI is derived from sateite hotos of and‡ ˆhe coour of the round is an indication of how dry the area is – yeow is very dry and reen is not dry‡ ”nce a certain dryness threshod is reached… the farmers insured under the scheme automaticay receive a um sum ayment which they can use to uy feed for their ivestock‡ It is not to comensate for oss of ivestock… ut to rotect the ivestock from the effects of the drouht in the first ace‡ 15 obile insurance distribution in emerging markets rican innovations spreading globall, Žwiss ‹e… 201™‡ 16 Global insurance revie €‚ƒ„ and outlook €‚ƒ…†ƒ‡, Žwiss ‹e… Novem er 201™‡ Swiss Re sigma No 2/2016 ’
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