RIO DE JANEIRO—Microinsurance remains a largely undeveloped sector for insurers, but there are some success stories that indicate that a market serving individuals that make $2 to $4 a day could be viable, a Chartis Inc. executive said Tuesday.

Insurers have offered a wide range of products to consumers and businesses in developing economies, including life insurance, accident coverage, disability insurance and property/casualty coverage, said Ralph W. Mucerino, chief distribution officer, global commercial insurance at the New York-based insurer.

But the most common microinsurance products address death, such as funeral expense coverage, and personal accident coverage, he said during a session at the International Insurance Society Seminar in Rio de Janeiro.

Chartis has had some success in selling microinsurance in various countries, but they have had to adapt to local conditions each time, Mr. Mucerino said.

In India, for example, Chartis has a 26% stake in Tata AIG, which works with the government to offer health benefits. The program covers $600 in hospital expenses for families and the premium is paid by the consumer, the state government and the central government. The program is technology-driven with smart cards issued to all program members. The program “provides a benefit to society and gives us some experience,” Mr. Mucerino said. So far, 20,000 claims have been paid.

In addition, Chartis offers livestock insurance in India.

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“We decided that to have a broad portfolio, we needed to offer livestock insurance,” he said. The government provides a 50% premium subsidy and, again, technology plays a big role in the program to ensure quick policy issuance and claims payments, Mr. Mucerino said. All the animals are tagged and photographed, and the data is captured before policies are issued. The insurer now covers 350,000 animals in India, he said.

In Colombia, Chartis has partnered with utilities to offer personal accident coverage, some homeowners products and low-level commercial lines, Mr. Mucerino said. Chartis has offered the coverage for six years and has 190 salespeople who have “knocked on 100,000 doors,” he said.

The premiums usually are about $2.50 a month, and the partnership enables Chartis to use the utilities’ payment mechanisms, Mr. Mucerino said.

The sales process is face-to-face, which allows the sales staff to offer personalized advice, he said. “It’s a well-controlled process, but it’s cumbersome,”

The key for all microinsurance products is the having the right distribution channel in place, Mr. Mucerino said.

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