2. Microinsurance Innovation Facility Ralph Mucerino Chief Distribution Officer Senior Vice President Chartis Global Commercial Insurance

3. Index Microinsurance Overview  Definition /  Segmentation /  Main Products Offering  India /  Colombia Conclusions

4. Definition Is a term increasingly used to refer to insurance characterized by low premium and low caps or low coverage limits, sold as part of a typical risk-pooling and marketing arrangement designed to service low-income people and businesses not served by typical social or commercial insurance schemes

5. Customer Segmentation Conventional Insurance Market 2.6 billion people $33 billion market $ 2/day $1.25/day Source: Swiss Re Economic Research & Consulting & World Bank Povcalnet $ 4/day 1.4 bill. people $7 bill. market

6. Main Products The most utilized microinsurance products in emerging markets, according to a survey by The Microinsurance Network in 2010, are those that insure against death and accident

7. TATA AIG India

8. India - Initiatives Segment as an opportunity Dedicated team to develop innovative products, services, distribution channels and technology Current portfolio US$ 12 million

9. RSBY – A Success Story Health Insurance scheme - designed by government of India - for BPL (Below Poverty Line) Population Smart-card based system of beneficiary identification Annual hospitalization coverage up to (US$ 600) for a family of five Pre-existing diseases to be covered, subject to minimal exclusions Premium (US$ 0.6) : Shared by Beneficiary, State and Central Government in 1:3 ratio

10. RSBY – Enrollment Station

11. Livestock Insurance Livestock is primary or secondary source of income for approximately 100 million households Provides coverage for cattle, sheep and goat etc. Government provides 50% premium subsidy under livestock development scheme Pre-existing diseases to be covered, subject to minimal exclusions Ear tagging using polyurethane of RFID tags for animal identification

12. Portfolio

13. Innovation Award Tata AIG has been awarded a grant of US$ 85,000 by Microinsurance innovation Facility (MIF), International Labor Organization (ILO), Geneva Project - To provide coverage for cattle and use mobile technology for enrollment and claim settlement of insurance Project Overview Digital Photograph of cattle through the use of Mobile Devices On the spot issuance of premium receipt/certificate of insurance Use of Mobile Devices for claims surveys Customer Satisfaction - quick policy issuance & speedy claims Cost Reduction - fraud control & savings on transaction cost

14. Process for Mobile Enrollment

15. Chartis Colombia

16. Colombia More than: 6 years of activity 190 Sales People 25 Field Supervisors 10 cities and municipalities visited each month 100,000 doors knocked each month around the country Departments with F2F operation currently Departments with F2F operation in the past but not currently ELECTRICARIBE GAS NATURAL EMCALI

17. A Complete Product Portfolio Consumer Lines PA Cancer Home Owners+ Plus Commercial Lines Combined Target Sponsor Utility companies with high penetration in the zone of influence Population concentration in low to medium to low income Utility provides a collection mechanism Products Simple to explain and understand Pre-underwritten including family option Sum insured and premiums according to target population (from US$ 8k) Premiums from US$ 2.5 Sponsor & Product

18. Benefits Sell products through a sponsor that has the payment mechanism to a population that lacks financial products and a good database Offer personalized advice and product explanation Deliver the policy immediately after the sales process Key Success Factors Well controlled sales process Perceived as representatives of the utility Payment mechanism – utility bill Sales Process - Face to Face

19. Conclusions Chartis is committed at every level to continue to provide innovative products and services to the microinsurance segment and our mission is to make the world a safer place Huge underserved segment worldwide Developing the right analytics globally will allow us to target this segment more effectively with the right technology Identifying and developing the right distribution channel Collection of premium – processes and technology Innovation Right Partners Ease of claims