Latest Publications

Making Access Possible (MAP) Madagascar

The island state of Madagascar has a largely agrarian population vulnerable to the extremes of nature: 72% of adults depend on agriculture, more than 4.2m adults experienced a climate-related shock in the past year, and at least 40% report being uncertain about whether they will have food going forward. Madagascar ranks 154 out of 188 on the human development index, globally, and the GDP per capita is only $402 per year.

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 into economically productive assets. 

The role of InsurTech in microinsurance: How is InsurTech addressing 5 challenges in microinsurance?

How is InsurTech addressing five challenges in microinsurance in emerging markets?

 

The business of insurance is hard. Microinsurance delivery has proven to be nearly impossible. Despite almost two decades of focus on the under and uninsured, microinsurance reaches just under 300 million people across the developing world. This is only around 10% of the potential market for insurance. While 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.

 

Making Access Possible (MAP) Zambia

From 2009 to 2015 the proportion of adults, financially excluded from any financial service, decreased from 63% to 41% in Zambia, which exceeded the Zambian Government‘s national target of 50%. More than 14% of these adults now use mobile money services, whilst the largest growth has been in the use of banking services – from 14% of adults in 2009 to nearly a quarter of adults in 2015.

 

However, much of this growth hides the reality for the majority of adults in Zambia who have yet to reap the full benefits of financial inclusion. Most adults still rely largely on informal financial services, while formal products are used infrequently to meet a limited number of financial needs. Bank accounts, for example, remain largely dormant. Some are used as mailboxes to make or receive payments and most adults still save using informal savings groups or under the proverbial mattress. Retail credit still remains constrained and unable to contribute effectively to growth in the economy. More than 70% of adults still borrow for short term expenses from family and friends while less than 5% borrow from banks, less than 3% from MFIs.

 
Latest Publications

Making Access Possible (MAP) Madagascar

The island state of Madagascar has a largely agrarian population vulnerable to the extremes of nature: 72% of adults depend on agriculture, more than 4.2m adults experienced a climate-related shock in the past year, and at least 40% report being uncertain about whether they will have food going forward. Madagascar ranks 154 out of 188 on the human development index, globally, and the GDP per capita is only $402 per year.

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 into economically productive assets. 

The role of InsurTech in microinsurance: How is InsurTech addressing 5 challenges in microinsurance?

How is InsurTech addressing five challenges in microinsurance in emerging markets?

 

The business of insurance is hard. Microinsurance delivery has proven to be nearly impossible. Despite almost two decades of focus on the under and uninsured, microinsurance reaches just under 300 million people across the developing world. This is only around 10% of the potential market for insurance. While 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.

 

Making Access Possible (MAP) Zambia

From 2009 to 2015 the proportion of adults, financially excluded from any financial service, decreased from 63% to 41% in Zambia, which exceeded the Zambian Government‘s national target of 50%. More than 14% of these adults now use mobile money services, whilst the largest growth has been in the use of banking services – from 14% of adults in 2009 to nearly a quarter of adults in 2015.

 

However, much of this growth hides the reality for the majority of adults in Zambia who have yet to reap the full benefits of financial inclusion. Most adults still rely largely on informal financial services, while formal products are used infrequently to meet a limited number of financial needs. Bank accounts, for example, remain largely dormant. Some are used as mailboxes to make or receive payments and most adults still save using informal savings groups or under the proverbial mattress. Retail credit still remains constrained and unable to contribute effectively to growth in the economy. More than 70% of adults still borrow for short term expenses from family and friends while less than 5% borrow from banks, less than 3% from MFIs.

 

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