A substantial share of the world’s popu­lation wakes up each day facing life’s risks with­out any safety net. They do not have any insu­rance policy, and usually can’t find one to suit their needs or finan­cial capabilities.

It is our firm convic­tion that this bottom half of the global eco­nomic pyra­mid is an under-served client group that is far too big to be ignored. Having been active in micro­insurance for several years, we have come to believe in its commer­cial viabi­lity. It may not be easy, but it can be done - provided suffi­cient scale is attained, and cover and claims are managed efficiently.

Our main success has been in India, where local insurers cover govern­ment-spon­sored hos­pital care pro­grams for millions of fami­lies living below the poverty line. A key issue here is fraud control, both at enrol­ment and during treat­ment in hospital.

We offer both risk sha­ring, through a rein­surance contract, and risk manage­ment of the under­lying scheme. In this way we not only ensure profita­bility for the in­surers and our­selves, but also help reduce the mis­use of govern­ment money and hence ensure these pro­grams actually benefit the poor.

This is a perfect exam­ple of how we share the know­ledge we have with our clients. The early-mover advan­tage our clients now enjoy re­flects Hannover Re’s open­ness to new ideas and our excep­tional flexi­bility in ex­ploring un­charted territory.