It is estimated that 60% of the population of Brazil – over 105 million people are on low incomes. For those citizens there is a fine line between hardship and crisis as there is no state funded safety net that we benefit from here in the UK.
Micro-insurance can help these families to keep their head above water after an unexpected event, contributing indirectly to the micro-economic balance by ensuring that grocery bills and school fees get paid, and that opportunities for social advancement are not compromised.
The challenge from the outset was to design a product meeting a very specific identified need to a group of consumers that were already short of expendable income and who were very unlikely to buy via traditional banking networks.
The Idea was to distribute its micro-insurance product through the 12,500 lottery ticket sales outlets. The innovation lesson here is the Design Thinking at the front end in identifying the customer persona, their preferences (and in this case their aversion to traditional banking), budget and behaviors, they took a simplified insurance product to where the consumers go – the same place they buy lottery tickets.
You can read more about the innovation on this link.