Microinsurance

Inclusive Insurance and the Sustainable Development Goals

How insurance contributes to the 2030 Agenda for Sustainable Development.   In 2015, the UN adopted a far-reaching resolution intended to transform the world. The 2030 Agenda for Sustainable Development with its 17 Sustainable Development Goals seeks to complete what the Millennium Development Goals did not achieve, particularly in reaching the most vulnerable. Inclusive insurance, as a risk protection mechanism, can arguably support many of the SDGs. Being…

Microinsurance solutions for climate change

State of Microinsurance report    The Microinsurance Network launched the third edition of The State of Microinsurance, an annual sector journal providing insurance industry, experts and practitioners operating in the inclusive insurance space with key insights on the latest developments in microinsurance. 

Labour unions and financial inclusion in South Africa

How labour unions facilitate the provision of financial services for their members.   Labour unions play a critical role in improving the well-being of their members through promoting their rights in the workplace. These members often fall in the lower income market, which is stereotypically underserved by financial service providers. As an organising entity with bargaining power, access to a membership base, footprint and in…

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…

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…

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…

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…

Managing risk while facilitating innovation: The case of m-insurance in Zambia

As part of a series of case studies commissioned by FinMark Trust, Bankable Frontiers Associates (BFA) and Cenfri conducted a rapid assessment of the market and regulatory landscape for mobile microinsurance (m-insurance) initiatives in Zambia.   This paper builds on two previous case studies investigating the rise of m-insurance (i.e. microinsurance sold through mobile phones) in Zimbabwe and Tanzania. These studies highlighted that while m-insurance…

Can the digitalization of microinsurance make all the difference - Assessing the growth potential of digital microinsurance

Digital Financial Services (DFS) are increasingly seen as a way to address the high transaction costs impeding scale and access in financial services. As part of this focus on digital financial services, there is growing interest in how digitization could impact microinsurance, whether through distribution, scale, collections, or improving the efficiency of the value chain. The term Digital Microinsurance is used to encompass the broader…

How low can we go? A discussion note on whether life microinsurance schemes offer value at low claims ratios

FinMark Trust commissioned Bowman Consulting to consider a method of measuring the value of life microinsurance with a view to answer the question of whether microinsurance products that have low claims ratios necessarily mean that their consumers are receiving poor value. It also considers whether there is a level of claims ratio below which consumers should not consider microinsurance as a viable risk coping mechanism…

Managing risk while facilitating innovation: The case of mobile insurance in Tanzania

Mobile insurance (m-insurance) can play an important role in enhancing access to insurance, especially in regions where distribution and reach pose challenges to serving the market. Due to the significant penetration of mobile phones, airtime vendors, and mobile money agents, m-insurance initiatives have the potential to reach scale almost overnight. As with all innovations, however, new risks are introduced as m-insurance "sprinters" reach scale.

Credit life insurance in South Africa: the customer's perspective

Credit life insurance may be the first type of insurance that many low-income consumers encounter. As such, it can offer an opportunity for introducing consumers to the concept of insurance and, if it offers value to them, can lead to uptake of other insurance products in future– a phenomenon that can be termed positive market discovery. However, credit life insurance can also lead to consumer…

Regaining momentum? Update on microinsurance in South Africa

In South Africa, the proposal for a microinsurance regulatory framework has been on the table since 2008, when National Treasury released a Discussion Paper on the Future of Microinsurance Regulation. The Discussion Paper initiated a consultative process with the National Treasury, Financial Services Board and the insurance industry – supported by FinMark Trust and Cenfri – that was finalized in 2011 with the release of…

Regulating m-insurance in Zimbabwe: managing risk while facilitating innovation

M-insurance is insurance sold through and/or with a mobile network operator (MNO) and has gained significant attention in recent years due to its rapid growth in African and Asian markets and its potential to grow inclusive insurance markets. According to CGAP's brief on the emerging global landscape of mobile microinsurance, over 70 m-insurance schemes have been launched globally across 15 countries, with one initiative winning…

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Microinsurance

Inclusive Insurance and the Sustainable Development Goals

How insurance contributes to the 2030 Agenda for Sustainable Development.   In 2015, the UN adopted a far-reaching resolution intended to transform the world. The 2030 Agenda for Sustainable Development with its 17 Sustainable Development Goals seeks to complete what the Millennium Development Goals did not achieve, particularly in reaching the most vulnerable. Inclusive insurance, as a risk protection mechanism, can arguably support many of the SDGs. Being…

Microinsurance solutions for climate change

State of Microinsurance report    The Microinsurance Network launched the third edition of The State of Microinsurance, an annual sector journal providing insurance industry, experts and practitioners operating in the inclusive insurance space with key insights on the latest developments in microinsurance. 

Labour unions and financial inclusion in South Africa

How labour unions facilitate the provision of financial services for their members.   Labour unions play a critical role in improving the well-being of their members through promoting their rights in the workplace. These members often fall in the lower income market, which is stereotypically underserved by financial service providers. As an organising entity with bargaining power, access to a membership base, footprint and in…

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…

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…

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…

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…

Managing risk while facilitating innovation: The case of m-insurance in Zambia

As part of a series of case studies commissioned by FinMark Trust, Bankable Frontiers Associates (BFA) and Cenfri conducted a rapid assessment of the market and regulatory landscape for mobile microinsurance (m-insurance) initiatives in Zambia.   This paper builds on two previous case studies investigating the rise of m-insurance (i.e. microinsurance sold through mobile phones) in Zimbabwe and Tanzania. These studies highlighted that while m-insurance…

Can the digitalization of microinsurance make all the difference - Assessing the growth potential of digital microinsurance

Digital Financial Services (DFS) are increasingly seen as a way to address the high transaction costs impeding scale and access in financial services. As part of this focus on digital financial services, there is growing interest in how digitization could impact microinsurance, whether through distribution, scale, collections, or improving the efficiency of the value chain. The term Digital Microinsurance is used to encompass the broader…

How low can we go? A discussion note on whether life microinsurance schemes offer value at low claims ratios

FinMark Trust commissioned Bowman Consulting to consider a method of measuring the value of life microinsurance with a view to answer the question of whether microinsurance products that have low claims ratios necessarily mean that their consumers are receiving poor value. It also considers whether there is a level of claims ratio below which consumers should not consider microinsurance as a viable risk coping mechanism…

Managing risk while facilitating innovation: The case of mobile insurance in Tanzania

Mobile insurance (m-insurance) can play an important role in enhancing access to insurance, especially in regions where distribution and reach pose challenges to serving the market. Due to the significant penetration of mobile phones, airtime vendors, and mobile money agents, m-insurance initiatives have the potential to reach scale almost overnight. As with all innovations, however, new risks are introduced as m-insurance "sprinters" reach scale.

Credit life insurance in South Africa: the customer's perspective

Credit life insurance may be the first type of insurance that many low-income consumers encounter. As such, it can offer an opportunity for introducing consumers to the concept of insurance and, if it offers value to them, can lead to uptake of other insurance products in future– a phenomenon that can be termed positive market discovery. However, credit life insurance can also lead to consumer…

Regaining momentum? Update on microinsurance in South Africa

In South Africa, the proposal for a microinsurance regulatory framework has been on the table since 2008, when National Treasury released a Discussion Paper on the Future of Microinsurance Regulation. The Discussion Paper initiated a consultative process with the National Treasury, Financial Services Board and the insurance industry – supported by FinMark Trust and Cenfri – that was finalized in 2011 with the release of…

Regulating m-insurance in Zimbabwe: managing risk while facilitating innovation

M-insurance is insurance sold through and/or with a mobile network operator (MNO) and has gained significant attention in recent years due to its rapid growth in African and Asian markets and its potential to grow inclusive insurance markets. According to CGAP's brief on the emerging global landscape of mobile microinsurance, over 70 m-insurance schemes have been launched globally across 15 countries, with one initiative winning…

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