UAB seeks to roll out its life microinsurance product launched in 2003 (a promising experience with 15,000 clients) on a large scale with the use of new technologies. The product Cauri d´or targets informal sector entrepreneurs, such as women and men selling goods at a market stall, mostly in urban area. It is based on a contractual savings scheme and includes life and disability coverage. Clients´ contributions are collected every day (as low as 150 francs CFA or 0.35 USD per day). Terms vary from 1 month to 5 years and insurance premiums are low – 100 francs CFA per month. The benefit is twice the value of the contracted capital (with a cap of 200,000 francs CFA for both life and disability). UAB faces, as a main challenge, the security and high costs of manual daily collections. The use of new technologies (equipping clients with smart cards and collectors with computer terminals) should improve the administration of the product, overcome these challenges and help UAB expand its operations country wide.
Expected target groups: Micro-entrepreneurs from local markets
Expected outreach: 200 000 clients
Union des Assurances du Burkina Vie (UAB) is a well-established life insurance company (33% life market share; 3rd largest insurer in Burkina of 8) with substantial experience in microinsurance. The Cauri d´or – targeting informal workers and offering a life microinsurance product - was pilot tested since 2003. The insurer´s key motivation is help poor families to sustain microenterprise activities after death of the breadwinner by providing his/her relatives with capital during the transition.
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