Microinsurance to the Last, the Least, and the Lost

A Case Study in Rural India
by Prathima Rajan, December 20, 2011


Until 2008, microinsurance in India was offered at the state level, with limited scope and coverage. Biometric-based smart card insurance, developed by Financial Inclusion Network and Operations Ltd. (FINO) and ICICI Lombard General Insurance Company, was offered to a target group in rural India. This was later adopted by the Government of India and is now known as “Rashtriya Swasthya Bima Yojna” (RSBY), which means “National Health Insurance Scheme.”

A new report, Microinsurance to the Last, the Least, and the Lost: A Case Study in Rural India, examines the business model adopted by this nationwide insurance initiative, which was designed not only with a social objective in mind but also as an economically viable option for stakeholders. The report sheds light on technology that has enabled the vast scope and coverage of microinsurance in India.

“The technology included in Rashtriya Swasthya Bima Yojna to the rural population has made cashless and paperless transactions possible with easy evaluation and monitoring, in addition to ensuring secure processing,” says Prathima Rajan, Celent Analyst and author of the report.

The report will help inform insurers that are intending to offer microinsurance or health insurance in emerging markets.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

Executive Summary




Implementation Background and Objectives



Objectives of RSBY Scheme


RSBY Scheme Implementation Process



FINO”s Role as Technology Partner



Implementation Challenges


ICICI Lombard: Largest Private General Insurer in RSBY Scheme




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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