Microinsurance

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…

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…

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…

ILO's Microinsurance Innovation Facility Special Annual Report (2013)

The ILO’s Microinsurance Innovation Facility recently released there 2013 Special Annual Report to mark the end of 6 years of the ILO’s Microinsurance Innovation Facility. In this time the microinsurance industry has grown dramatically to cover around half a billion people with an increasingly wide range of products. Microinsurance has been increasingly taken up by mainstream insurers, with 33 of the world’s 50 largest insurance…

Mobile Phones and Microinsurance

Insurers are using mobile phones to address two main challenges facing the microinsurance sector: increasing efficiency and reaching scale. Mobile phones and microinsurance (ILO’s Microinsurance Innovation Facility Microinsurance Paper #26) looks at the mobile phone beyond just a self-enrolment device, but as infrastructure for delivering insurance. By leveraging mobile phone infrastructure insurers have made processes more efficient across the insurance value chain; reducing turnaround times…

Scale: Thinking big

Achieving scale is a significant success factor for microinsurance schemes, as low premiums with high costs require substantial volumes to make an initiative sustainable; however to achieve scale is difficult. In an effort to identify lessons that support practitioners, the ILO’s Microinsurance Innovation Facility commissioned Cenfri to review microinsurance initiatives that have achieved scale  to identify and understand their trends and drivers in scale.   Scale:…

CISNA MI Forum: Official launch of report on Regulating for Inclusive Insurance Markets in SADC

The report on Regulating for Inclusive Insurance Markets in SADC was officially launched at the SADC Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) Microinsurance Forum in Johannesburg, South Africa on 6 December, 2013. This report supports the implementation of commitments made by Member States of the Southern African Development Community (SADC) to align the regulation of their financial sectors with international standards. These commitments…
 

Microinsurance

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…

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…

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…

ILO's Microinsurance Innovation Facility Special Annual Report (2013)

The ILO’s Microinsurance Innovation Facility recently released there 2013 Special Annual Report to mark the end of 6 years of the ILO’s Microinsurance Innovation Facility. In this time the microinsurance industry has grown dramatically to cover around half a billion people with an increasingly wide range of products. Microinsurance has been increasingly taken up by mainstream insurers, with 33 of the world’s 50 largest insurance…

Mobile Phones and Microinsurance

Insurers are using mobile phones to address two main challenges facing the microinsurance sector: increasing efficiency and reaching scale. Mobile phones and microinsurance (ILO’s Microinsurance Innovation Facility Microinsurance Paper #26) looks at the mobile phone beyond just a self-enrolment device, but as infrastructure for delivering insurance. By leveraging mobile phone infrastructure insurers have made processes more efficient across the insurance value chain; reducing turnaround times…

Scale: Thinking big

Achieving scale is a significant success factor for microinsurance schemes, as low premiums with high costs require substantial volumes to make an initiative sustainable; however to achieve scale is difficult. In an effort to identify lessons that support practitioners, the ILO’s Microinsurance Innovation Facility commissioned Cenfri to review microinsurance initiatives that have achieved scale  to identify and understand their trends and drivers in scale.   Scale:…

CISNA MI Forum: Official launch of report on Regulating for Inclusive Insurance Markets in SADC

The report on Regulating for Inclusive Insurance Markets in SADC was officially launched at the SADC Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) Microinsurance Forum in Johannesburg, South Africa on 6 December, 2013. This report supports the implementation of commitments made by Member States of the Southern African Development Community (SADC) to align the regulation of their financial sectors with international standards. These commitments…
 

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