Insuring the base of the pyramid

Abstract

This article analyses the issues present in micro-insurance and highlights operational innovations exhibited by two successful micro-insurance schemes based in Karnataka Yeshasvini Scheme and Sampoorna Suraksha which can potentially help scale up the micro-insurance coverage across India. Micro-insurance schemes inherently involve a trade-off between coverage, affordability and operating cost, and although different in nature of coverage and benefits, both the schemes discussed here have employed similar processes and tools to manage the trade-offs. These schemes have demonstrated how sustainable models of micro-insurance can be developed and scaled up, albeit with a new set of challenges.