Case Study: Entering an Emerging Market

Seeking to implement a premium growth initiative targeting the untapped and emerging potential of the microinsurance market in the developing world, LDR advised a leading Egyptian insurer to design and implement a microinsurance product.

Introducing Insurance to an Emerging Market


In emerging markets around the world, challenges such as cultural nuance, market fragmentation, limited discretionary income, and fractured distribution networks inhibit the adoption of insurance. Egypt, for example, has an insurance penetration rate of less than 2% of the overall population. Microinsurance, which provides coverage for specific needs, is characterized by lower premiums and product constraints such as time, policy limits, or usage. The low penetration rate presented the opportunity to capture new business and bring greater financial stability and security to 100 million uninsured.


In the high-volume, low-margin business of microinsurance, LDR concluded that simple customer-centric products administered through localized teams were the key to addressing the distribution challenge. LDR identified two concrete objectives to achieve this goal: (1) partner with a leading local NGO, and (2) build an accessible mobile phone application to facilitate distribution of the product.  In navigating an untapped market, LDR aligned local actors with seasoned insurance, deal, and technology professionals. These multidisciplinary, international “Cross Functional Teams” drove the initiative from ideation all the way through full-scale launch, administration, and assessment.

“Cross Functional Teams” are the driving force behind growth projects in an Innovation Infrastructure.


Over 70,000 policies of accidental death and disability insurance were sold since launch. Regulators approved additional products and the insurer conservatively forecasts individual policy sales will be over 500,000 by 2020. Additionally, a new partnership has formed between the insurer and a top local bank, enabling the insurer to issue prepaid bank cards to customers with the ability to transfer settlement payments.

The successful execution of this project was made possible by a cross-functional, global team requiring efforts from team members in the U.S., Canada, and Egypt.

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