Emerging Project Lessons
A product design adapted to the needs of customers is important, but may become overly complex and incomprehensible to customers. Farmers attending various meetings asked that the maximum age for the programme, currently set at 65 years, be raised. La Positiva accepted the proposal and extended the age to 80 years. They also asked that medical care be included in the Agropositiva Vida microinsurance plan. La Positiva decided to include advance benefit coverage of 50% for terminal illnesses, as well as other variants. These modifications involving additional services and coverage need to be clear and able to be communicated to customers via the communication channel. The challenge is to include elements that provide value to the customer while being able to limit the complexity of the product for both the customer and the channel. These variations led to a situation where the product ultimately offered during the pilot phase was too complex and difficult to communicate. The tables below illustrate the complexity of the product.
a) Agropositiva Vida, designed for farmers of the Sierra and Jungle regions with household coverage (policyholder, spouse or companion and children
|
Coverage |
Coverage period and amounts insured |
||
|
First year |
Second year |
Third year |
|
|
1. For the policyholder |
|
|
|
|
1.1. Natural death |
PES 2,260.00 |
PES 2,900.00 |
PES 3,750.00 |
|
1.2. Death due to pre-existing illnesses |
PES 750.00 |
PES 970.00 |
|
|
1.3. 50%advance for illnesses |
PES 1,130.00 |
PES 1,450.00 |
PES 1,875.00 |
|
1.4. Accidental death |
PES 4,520.00 |
PES 5,800.00 |
PES 7,500.00 |
|
2. For the spouse or companion |
|
|
|
|
2.1. Natural death |
PES 1,400.00 |
PES 1,770.00 |
PES 2,350.00 |
|
2.2. Death due to pre-existing illnesses |
PES 460.00 |
PES 590.00 |
|
|
2.3. 50%advance for illnesses |
PES 700.00 |
PES 885.00 |
PES 1,175.00 |
|
2.4. Accidental death |
PES 2,800.00 |
PES 3,540.00 |
PES 4,700.00 |
|
3 For children (maximum 6) |
|
|
|
|
3.1. Natural death |
PES 690.00 |
PES 880.00 |
PES 1,400.00 |
|
3.2. Death due to pre-existing illnesses |
PES 230.00 |
PES 290.00 |
|
|
3.3. 50%advance for illnesses |
PES 345.00 |
PES 440.00 |
PES 700.00 |
|
3.4. Accidental death |
PES 1,380.00 |
PES 1,760.00 |
PES 2,800 |
b) Agropositiva Vida, designed for farmers of the Costal region with household coverage (policyholder, spouse or companion and children
|
Coverage |
Coverage period and amounts insured |
||
|
First year |
Second year |
Third year |
|
|
1. For the policyholder |
|
|
|
|
1.1. Natural death |
PES 4,520.00 |
PES 5,720.00 |
PES 7,300.00 |
|
1.2. Death due to pre-existing illnesses |
PES 1,500.00 |
PES 1,900.00 |
|
|
1.3. 50%advance for illnesses |
PES 2,260.00 |
PES 2,860.00 |
PES 3,650.00 |
|
1.4. Accidental death |
PES 9,040.00 |
PES 11,440.00 |
PES 14,600.00 |
|
2. For the spouse or companion |
|
|
|
|
2.1. Natural death |
PES 1,400.00 |
PES 1,770.00 |
PES 2,350.00 |
|
2.2. Death due to pre-existing illnesses |
PES 460.00 |
PES 590.00 |
|
|
2.3. 50%advance for illnesses |
PES 700.00 |
PES 885.00 |
PES 1,175.00 |
|
2.4. Accidental death |
PES 2,800.00 |
PES 3,540.00 |
PES 4,700.00 |
|
3 For children (maximum 6) |
|
|
|
|
3.1. Natural death |
PES 690.00 |
PES 880.00 |
PES 1,400.00 |
|
3.2. Death due to pre-existing illnesses |
PES 230.00 |
PES 290.00 |
|
|
3.3. 50%advance for illnesses |
PES 345.00 |
PES 440.00 |
PES 700.00 |
|
3.4. Accidental death |
PES 1,380.00 |
PES 1,760.00 |
PES 2,800.00 |
The product that emerged tried to fulfil multiple expectations and proved to be rather good but too complex to explain and be understood. It was a family product with staggered coverage in the first three years. The insured amounts were differentiated depending on whether the claimant was the policyholder, the spouse or a child less than 18 years old and with different levels of coverage depending on whether the insurance was contracted between the age of 18 and 70 years or between 70 and 80 years. Staggering was considered a motivation on the part of the insured to continue with the system and avoid anti-selection.
Monthly premium payments did not prove to be beneficial because the farmer does not naturally go to the users board every month. It was deemed necessary to make adjustments to the product, providing for a single annual payment at an amount affordable for the majority.
