Serve new geographies or customers
In 2003, Bajaj Allianz, a joint venture between Allianz AG and Bajaj Finserve in India, started offering insurance products to a new customer segment: households with incomes between $1.25 and $4 per day. For the consumers, who were not covered by conventional insurance products or government social protection programmes, micro-insurance offers protection against a number of risks, including illness, accidental death and disability, theft, fire, agricultural losses and natural disasters.
In the years that followed, Allianz subsidiaries in Colombia, Indonesia and Africa also developed insurance product lines for this consumer segment. Initially, the Allianz head office in Germany supported each subsidiary with communication and incubation services, but as the local businesses grew, Allianz created a new business unit, Emerging Consumers, tasked with business expansion in existing and new geographies. While still small compared to its traditional business, Allianz has built a profitable micro-insurance business, which offers the long-term opportunity to grow its customers from micro-insurance to conventional businesses. As of June 2015, Allianz had micro-insurance operations in 11 markets, insuring a total of 57.4 million lives.
Home page image: REUTERS/Rupak De Chowdhuri