What approach to creating microinsurance policies rarely succeeds?
Answer
Miniaturization of standard insurance policies.
The operational economics of microinsurance are vastly different from standard insurance, meaning simply reducing the sum insured on a traditional policy is an approach that usually fails.
Related Questions
What must a microinsurance business prove to support long-term professional paths?What approach to creating microinsurance policies rarely succeeds?When dealing with extremely low premiums, what must be drastically reduced?What method do providers often adopt to radically rethink distribution channels and lower per-policy expense?For long-term success, microinsurance must be sustainable in its own right, meaning it should not depend on what?Successful microinsurance functions as a shock absorber by preventing what outcome for poor families?What factor related to product design will cause a venture to fail regardless of its back-end sustainability?Compared to traditional insurers, what challenge often faces actuarial science application in microinsurance contexts?Which sector is frequently noted as possessing the largest untapped potential for microinsurance coverage?If the claims process for a life microinsurance product is bureaucratically heavy, what is the likely result?