Microinsurance

Microinsurance refers to the provision of insurance to lower-income households. If appropriately designed and intermediated, such products can play an important role in reducing vulnerability for the poor as well as presenting profitable markets for commercial insurers.

 

Cenfri staff members have done extensive work on the regulation and development of microinsurance markets in Africa (Botswana, Ethiopia, Kenya, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Uganda, Tanzania, Zambia and Zimbabwe), Latin America (Brazil, Colombia and Mexico) and Asia (China, India, Pakistan and Philippines).

 

Please view our recent publications in microinsurance:

Funding the frontier: The Link Between Inclusive Insurance Markets, Growth and Poverty Reduction
Funding the frontier: The Link Between Inclusive Insurance Markets, Growth and Poverty Reduction There has been considerable emphasis in development circles on the way insurance markets can contribute to poverty reduction by helping the poor to preserve assets and mitigate the effects of financial shocks, thereby reducing vulnerability. There has also been significant effort to promote microinsurance to low-income people. However, less has been written about the way insurance contributes indirectly to poverty reduction, i.e. by driving economic growth through risk management and the mobilisation of long-term savings, which can then be intermediated…
Additional Info
  • Country Sub-Saharan Africa (SSA)
  • Institution Cenfri
  • Date Published 2017
  • Document Type Scoping Note
  • Author/s Doubell Chamberlain, Wicus Coetzee
The role of InsurTech in microinsurance: How is InsurTech addressing 5 challenges in microinsurance?
The role of InsurTech in microinsurance: How is InsurTech addressing 5 challenges in microinsurance? The business of insurance is hard. Microinsurance has proven to be nearly impossible. Whilst promising examples have been documented of insurers achieving the impossible, sometimes even at scale, insurance cover for billions of excluded adults appears to be a long way down the road.   The challenges in microinsurance are many, but there are five key challenges for providers for doing business in this space and include: (1) lack of information on consumers; (2) consumers beyond current reach; (3) different and…
Additional Info
  • Country Sub-Saharan Africa (SSA)
  • Institution Cenfri, FSDA
  • Date Published 2017
  • Document Type Focus Notes
  • Author/s Herman Smit, Catherine Denoon-Stevens, Antonia Esser
Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation
Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation It is slightly over a decade since the first microinsurance regulations were introduced in India in 2005. With at least 18 insurance supervisors having rolled out microinsurance regulations today, the landscape is now vastly different. In this milestone publication 'Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation', the Acess to Insurance Initiative (A2ii) looks back at what supervisory approaches have been undertaken since then, and draw lessons from the past. 
Additional Info
  • Country Global
  • Institution Access to Insurance Initiative (A2ii)
  • Date Published 2016
  • Document Type Synthesis Report
Why use accounts: Understanding account usage through a consumer lens
Why use accounts: Understanding account usage through a consumer lens Over the past five years, the move towards digital financial services and simplified account opening procedures has improved the take-up of accounts by the low-income sector. The 2014 Global Findex data highlighted that the number of people without access to formal accounts decreased from 2.5 billion in 2011 to 2 billion in 2014. Whilst recognised as a major achievement, it is clear amongst the global community that account ownership alone is not, in itself, the goal of financial inclusion.  …
Additional Info
  • Country South Africa
  • Institution FinMark Trust
  • Date Published 2016
  • Document Type Focus Notes
  • Author/s FinMark Trust
Cutting corners at a most vulnerable time: The customer's perspective on abuses in the informal funeral parlour market in South Africa
Cutting corners at a most vulnerable time: The customer's perspective on abuses in the informal funeral parlour market in South Africa With the details of the South African microinsurance regulatory framework soon to be finalised, questions still remain as to how best to approach formalisation and enforcement of informal funeral parlours. Previous research showed that enforcement will not be an easy task, as it is a fragmented industry where informal insurance is key to many parlours’ operations. Understanding the nature and extent of abuse is important in informing the enforcement response. Please click here to download the study (PDF, 1.03MB) This…
Additional Info
  • Country South Africa
  • Institution Cenfri, FinMark Trust
  • Date Published 2016
  • Document Type Focus Notes
  • Author/s Christine Hougaard, Louise de Villiers, Albert van der Linden
  • More Microinsurance Articles
     

    Microinsurance

    Microinsurance refers to the provision of insurance to lower-income households. If appropriately designed and intermediated, such products can play an important role in reducing vulnerability for the poor as well as presenting profitable markets for commercial insurers.

     

    Cenfri staff members have done extensive work on the regulation and development of microinsurance markets in Africa (Botswana, Ethiopia, Kenya, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Uganda, Tanzania, Zambia and Zimbabwe), Latin America (Brazil, Colombia and Mexico) and Asia (China, India, Pakistan and Philippines).

     

    Please view our recent publications in microinsurance:

    Funding the frontier: The Link Between Inclusive Insurance Markets, Growth and Poverty Reduction
    Funding the frontier: The Link Between Inclusive Insurance Markets, Growth and Poverty Reduction There has been considerable emphasis in development circles on the way insurance markets can contribute to poverty reduction by helping the poor to preserve assets and mitigate the effects of financial shocks, thereby reducing vulnerability. There has also been significant effort to promote microinsurance to low-income people. However, less has been written about the way insurance contributes indirectly to poverty reduction, i.e. by driving economic growth through risk management and the mobilisation of long-term savings, which can then be intermediated…
    Additional Info
    • Country Sub-Saharan Africa (SSA)
    • Institution Cenfri
    • Date Published 2017
    • Document Type Scoping Note
    • Author/s Doubell Chamberlain, Wicus Coetzee
    The role of InsurTech in microinsurance: How is InsurTech addressing 5 challenges in microinsurance?
    The role of InsurTech in microinsurance: How is InsurTech addressing 5 challenges in microinsurance? The business of insurance is hard. Microinsurance has proven to be nearly impossible. Whilst promising examples have been documented of insurers achieving the impossible, sometimes even at scale, insurance cover for billions of excluded adults appears to be a long way down the road.   The challenges in microinsurance are many, but there are five key challenges for providers for doing business in this space and include: (1) lack of information on consumers; (2) consumers beyond current reach; (3) different and…
    Additional Info
    • Country Sub-Saharan Africa (SSA)
    • Institution Cenfri, FSDA
    • Date Published 2017
    • Document Type Focus Notes
    • Author/s Herman Smit, Catherine Denoon-Stevens, Antonia Esser
    Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation
    Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation It is slightly over a decade since the first microinsurance regulations were introduced in India in 2005. With at least 18 insurance supervisors having rolled out microinsurance regulations today, the landscape is now vastly different. In this milestone publication 'Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation', the Acess to Insurance Initiative (A2ii) looks back at what supervisory approaches have been undertaken since then, and draw lessons from the past. 
    Additional Info
    • Country Global
    • Institution Access to Insurance Initiative (A2ii)
    • Date Published 2016
    • Document Type Synthesis Report
    Why use accounts: Understanding account usage through a consumer lens
    Why use accounts: Understanding account usage through a consumer lens Over the past five years, the move towards digital financial services and simplified account opening procedures has improved the take-up of accounts by the low-income sector. The 2014 Global Findex data highlighted that the number of people without access to formal accounts decreased from 2.5 billion in 2011 to 2 billion in 2014. Whilst recognised as a major achievement, it is clear amongst the global community that account ownership alone is not, in itself, the goal of financial inclusion.  …
    Additional Info
    • Country South Africa
    • Institution FinMark Trust
    • Date Published 2016
    • Document Type Focus Notes
    • Author/s FinMark Trust
    Cutting corners at a most vulnerable time: The customer's perspective on abuses in the informal funeral parlour market in South Africa
    Cutting corners at a most vulnerable time: The customer's perspective on abuses in the informal funeral parlour market in South Africa With the details of the South African microinsurance regulatory framework soon to be finalised, questions still remain as to how best to approach formalisation and enforcement of informal funeral parlours. Previous research showed that enforcement will not be an easy task, as it is a fragmented industry where informal insurance is key to many parlours’ operations. Understanding the nature and extent of abuse is important in informing the enforcement response. Please click here to download the study (PDF, 1.03MB) This…
    Additional Info
    • Country South Africa
    • Institution Cenfri, FinMark Trust
    • Date Published 2016
    • Document Type Focus Notes
    • Author/s Christine Hougaard, Louise de Villiers, Albert van der Linden
  • More Microinsurance Articles