Latest Publications

Assuring Growth: 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?

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 new consumer needs; (4) customers inexperienced with formal financial services; and (5) constrained business models. 

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.

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. 

Page 1 of 24
 
Latest Publications

Assuring Growth: 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?

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 new consumer needs; (4) customers inexperienced with formal financial services; and (5) constrained business models. 

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.

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. 

Page 1 of 24
 

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