What is inclusive insurance?

Wakam received the gold trophy for citizen and responsible innovation with an inclusive insurance product.

It is an insurance offer that is in tune with the times, addressing social difficulties that may arise during this Covid crisis.

It is a non-profit offer aimed at the most vulnerable populations. It is intended for people who may not have the means to insure themselves and who are victims of life accidents.

What is inclusive insurance?

The starting point of this insurance is the belief that it is possible to develop insurance products with a philosophy, with goals that are somewhat different from what is currently offered.

The development of a product aimed at vulnerable populations required intensified preparation. For this, Wakam’s insurer team engaged with future consumers and users as well as associations.

The goal of such an organization was to try to understand what products could meet the needs of people in difficult economic situations.

• No margin

Wakam has decided that this range of products would generate no profit margin.

• Transparency

Wakam has committed to transparency by creating documentation for the insured. A simplified document highlighting the product’s coverage and exclusions. It is very visual and easy to understand.

The criteria guiding the inclusive insurance project are the absence of profit margin and transparency.

What are the criteria defining vulnerable populations and what coinciding guarantees?

There are already about ten guarantees, and this range is expanding.

These guarantees serve three different areas:

• household
• work
• mobility

For example, a product related to housing. During a claim inside a property, the insured receives reimbursement from their MRH insurer. This insurer applies a number of depreciation coefficients. That is when inclusive insurance comes into play. It will cover the loss of earnings that the insured will suffer due to this depreciation. In other words, inclusive insurance bridges what the main insurer does not compensate. These types of insurance are often low-cost with fixed compensation.

How does compensation work with an inclusive contract?

The compensation is fixed in advance to avoid any ambiguity about how the insured will subsequently receive their payout.

There are several types of vulnerable populations:

• Over-indebtedness: the distribution of the product can be done through trusted third parties such as associations. For example, Wakam works with the Crésus association, which helps people in over-indebtedness situations. It is the association that will customize a guarantee package for people in difficulty, best suited to their needs.

• People not subject to income tax: These products are distributed directly through companies. Eligibility criteria are attached to these offers. To be considered a vulnerable person, you must not be subject to income tax. In this case, companies finance the packages for their eligible employees. It is the company itself that subscribes to the package offer.

Will these offers evolve?

It is necessary to develop offers like any insurance product because the needs of people in difficulty can also evolve. When an insurance product evolves, tests are conducted to analyze what works and, importantly, what doesn’t, trying to understand the reasons for failure. If an offer works well, it shows that it meets needs and will therefore be added to the official range. Otherwise, it will be withdrawn. It is important to understand on the ground the true needs of people in difficulty.

Being close to reality is essential to develop relevant products.

When did inclusive insurance start?

It is still fairly new; it started during the full lockdown. Since it entails significant costs for companies, the rollout was not at full capacity. The companies that adopted it are highly committed with strong conviction.

Does this type of insurance have a future?

Companies are the primary target where it is possible to reach the most people in difficult situations.

For example, in a company with 5,000 employees, where 60% are eligible. This is a very broad and significant audience, offering an alternative in terms of protection compared to traditional methods. It is a form of social innovation that companies can offer their employees, with very targeted protections.

These packages can be adapted to meet the specific needs of each company.

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