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 current times, considering the social difficulties that will arise during this COVID crisis.

It is an offer aimed at the most vulnerable populations and is non-profit. It is intended for people who may not necessarily 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 and objectives somewhat different from what is already available.

The development of a product for vulnerable populations required intensive preparation. To this end, Wakam’s insurer involved future consumers, future users, and associations.

The goal of such an organization was to try to understand what products could satisfy people who were in difficult economic situations.

• No margin

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

• Transparency

Wakam committed to transparency by creating documentation for the insured. A simplified documentation highlighting the product coverage as well as 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 corresponding guarantees are there?

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

These guarantees serve three different areas:

• the household
• employment
• mobility

For example, a product related to housing. In the event of a claim within one’s residence, the insured receives reimbursement from their MRH insurer. This insurer applies a number of depreciation coefficients. At that point, inclusive insurance intervenes. It will cover the income loss that the insured will suffer due to this depreciation. In other words, inclusive insurance compensates for what the principal insurer does not cover. These types of insurance are often priced affordably and provide a flat-rate compensation.

How does compensation work with an inclusive contract?

The compensation is flat-rate to avoid any ambiguity about how the insured will receive their compensation later on.

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 collaborates with the Crésus association, which supports people in over-indebted situations. The association will personalize a guarantee package for people in difficulty, best suited to their needs.

• Individuals not subject to income tax: These products are distributed directly within companies. Eligibility criteria are associated with these offers. To be considered a vulnerable person, one must not be subject to income tax. In this case, companies fund the packages for their eligible employees. It is the company that subscribes to the package offer.

Will these offers evolve?

It is necessary to evolve insurance products like any other, as the needs of people in difficulty can also change. When an insurance product evolves, tests are conducted to analyze what works and, especially, what doesn’t, trying to understand why it didn’t succeed. If an offer works well, it indicates that it meets the needs and will be incorporated into the official offering. Otherwise, it is withdrawn. It’s important to understand on the ground the needs of people in difficulty.

Being in touch with reality is essential to designing relevant products.

When did inclusive insurance start?

It is relatively recent, beginning during the full lockdown. Given the considerable cost for companies, the launch was not at full throttle. The companies involved are those with a very strong conviction.

Does this type of insurance have a future?

Companies are the 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. It is both a very large and significant audience, providing an alternative in terms of protection compared to traditional methods. This is a form of social innovation that companies can implement for their employees through targeted protections.

These packages are adaptable to companies to best meet their needs.

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