Protecting the poor a microinsurance

Although someone like Metrine is much more vulnerable to financial setbacks than people with higher incomes, she does not think that an insurance product can protect her. Metrine tells us she struggles with the decision of whether to take her to the doctor.

Policies may be offered along with a small loan, with premiums that are a small percentage of the loan amount.

The Microinsurance Network is a nonprofit global organization of microinsurance industry experts comprised of 80 institutional members from over 40 countries committed to promoting the development and delivery of valuable insurance services for low-income people.

Continuum was brought in to help the MicroEnsure team use human-centered design techniques to create and iterate product concepts over mobile. Essential reading for insurance professionals, practitioners and anyone involved with offering insurance to low-income persons, this volume covers the many aspects of microinsurance in detail including product design, marketing, premium collection and governance.

These are important questions because insurers are increasingly interested to expand into the low-income market.

Communities can choose from more than products with different terms and conditions. Nigel Ralphhas spent over 30 years working in the international reinsurance industry, travelling extensively and visiting more than 50 insurance markets, with extended periods in Latin America and Japan.

It covers numerous innovations that have emerged in recent years to meet the challenges of providing insurance to low-income people, from new products and delivery channels to consumer education tools, while examining changes in regulations, providers and schemes.

Products vary in type and structure but are generally distinguished by high volumes, low cost and efficient administration. Microinsurance, however, can cost only a few euros per year and could help those with a low income to overcome the financial shocks that come along with natural disasters, accidents, or disease.

The term micro in Microfinance refers to the lower premium to be paid and thus the lower coverage on insured goods or events, compared to traditional insurance services.

Social Protection

If only a fraction of this went into microinsurance, millions of people would enjoy better and cheaper health care. This seminar will give an account of the place of microinsurance within the wider context of insurance in developing markets, exploring how microinsurance models are being implemented, and will highlight a number of case studies of successful programmes run in different countries.

Product Development Having identified the Micro insurance needs of the low-income households, The Professional Consortium has the expertise to develop innovative micro insurance products for insurance companies and assist them with planning implementation of them.

How could we help MicroEnsure add short-term value to their insurance products to prove the worth and relevance of what is mostly considered a long-term product?

Caitlin Toombs So where and how does insurance fit in? The result is a practical, wide-ranging resource which provides the most thorough overview of the subject to date. One person we met was Metrine, who lives in Jericho, a housing complex on the outskirts of Nairobi, where she lives with her husband, 5 year-old daughter and teenage niece.

Mobile microinsurance products should strive to be simple, transparent with minimal or no exclusions, and have a simplified claims process.

Protecting the Poor: A Microinsurance Compendium

Because of these obligations and the prospect of a very large market, many microinsurance innovations stem from India. To encourage this expansion, microinsurance The future challenge for Microinsurance providers is bridging the gap between an adequate and satisfactory protection for poor households and the affordability of premiums to be paid.

The number of policies issued in to by private insurers registered a percent increase over those issued in to AIG was one of the first companies to offer microinsurance and began selling policies in Uganda in The vast majority of Indians work informally, pay no taxes, and enjoy no social protection whatsoever.


Given the low income of most Indian farmers this almost always means underwriting microinsurance policies. Inthere were 31 insurance companies—including 24 private and 7 public insurers—selling life and general policies in India.

There are various types of microinsurance programs. Microinsurance is still an experimental phase even though some products are available in several developing countries. Munich Re Foundation This volume is a unique collection of recent practices and emerging ideas in microinsurance.

Policy and Regulation India is one of the few developing countries in the world that has a special microinsurance act that regulates the suppliers through its special agency for insurance regulation — the Insurance Regulatory and Development Authority.

Such ability should enable people to mitigate financial jolts and maintain a sense of financial confidence even in the face of significant vulnerability.

Increasing the Immediate Value of Microinsurance for the Poor

Only a tiny fraction of people in Africa have insurance policies today. Prioritizing limited resources is a constant challenge for Metrine and one misstep or unplanned event can bring about a disruption in savings, spending and planning that affects families for weeks or even months at a time.

Microinsurance could potentially benefit 77 million Indonesians

As the microinsurance community dramatically evolves and millions more low-income households have access to better insurance cover, this timely second volume will be an invaluable resource for policymakers, insurers, academics and NGOs.

Microinsurance Special Interest Group.Microinsurance, the provision of insurance services to low-income people, can help poor households protect themselves against the risks and shocks that life inevitably brings.

Without access to risk mitigation tools, insurance or adequate social security services, poor people are extremely vulnerable and ill-equipped to meet unexpected and. The Professional Consortium has started its work in year with aim s of “Protecting Poor” and has been able to establish several sustainable development projects to up lift the lives of the poor people.

Definition Microinsurance. Description. Microinsurance is a type of insurance with low premium and low limit coverage targeted to low-income people. The term Microinsurance is an extension of the concept of Microfinance into insurance services.

An appropriate definition comes from C. Churchill in his book Protecting the Poor: A Microinsurance Compendium. Protecting the poor against agricultural risks Status and lessons learnt from microinsuranceStatus and lessons learnt from microinsurance Dirk Reinhard Microinsurance coverage increased by more than % between and Live insurance is the main driver of growth.

"Protecting the Poor: A microinsurance compendium, volume II", is a unique collection of recent practices and emerging ideas in microinsurance. It covers the numerous innovations that have emerged in recent years to meet the challenges of providing insurance to low-income people, from new products.

How Microinsurance Works in the Philippines

Jul 02,  · Experts in the field give their views on the importance of the first volume of the Microinsurance Compendium, Protecting the poor, to the development of the.

Protecting the poor a microinsurance
Rated 0/5 based on 75 review