Any organisation faces three main dilemmas while strategising for microinsurance. These are:
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What product type is best suitable for the market?
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What does the client want in the product? and
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How should the product be delivered?
Though these questions are common to any industry, in microinsurance, these questions are particularly strategic in nature since each one demands a decision that is often tied with substantial investment and/or commitment. The Choice Pyramid offers a framework to analyse and resolve these issues. The Choice Pyramid framework takes us through three-stages – Environmental, Market and Organisational Suitability for microinsurance implementation. Each of these three stages leads to a decision point for financial institutions to address one of the key questions discussed above.