Microinsurance .

• Microinsurance

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Micro-insurance

1 'Microinsurance' is the protection of low-income people (those living on between approximately $1 and $4 per day) against specific perils in

exchange for regular premium payment proportionate to the likelihood and cost of the risks

involved


Micro-insurance

1 The institutions or set of institutions implementing microinsurance are

commonly referred to as a microinsurance scheme.


Micro-insurance - Definitions of microinsurance

1 The IRDA’s characterization of microinsurance by the product

features is further complemented by their definition for microinsurance agents, those appointed by and

acting for an insurer, for distribution of microinsurance products (and only

those products).



1 #Microinsurance is a financial arrangement to protect low-income

people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk

involved



1 #Microinsurance is synonymous to community-based financing

arrangements, including community health funds, mutual health

organizations, rural health insurance, revolving drugs funds, and

community involvement in user-fee management



1 Under this definition, decisions in microinsurance are made within each

unit, (rather than far away, at the level of governments, insurance

company|companies, NGOs that offer support in operations, etc.).



1 Microinsurance links multiple small units into larger structures, creating

networks that enhance both insurance functions (through broader risk pools) and support structures for

improved governance (i.e



1 # the essential role of the network of microinsurance units is to enhance

risk management of the members of the entire pool of microinsurance

units over and above what each can do when operating as a stand-alone

entity.


Micro-insurance - Microinsurance products

1 Microinsurance, like regular insurance, may be offered for a wide variety of risks. These include both health risks (illness, injury, or

death) and property risks (damage or loss). A wide variety of microinsurance products exist to address these risks, including crop

insurance, livestock/cattle insurance, insurance for theft or fire, health insurance,

term life insurance, death insurance, disability insurance, insurance for natural

disasters, etc.


Micro-insurance - Microinsurance products

1 Microinsurance has made a significant difference in countries like

Mali, as Maxime Prud'Homme and Bakary Traoré describe in

[http://www.inwent.org/ez/articles/167030/index.en.shtml Innovations in

Sikasso]


Micro-insurance - Microinsurance delivery models

1 [http://www.inwent.org/ez/articles/166486/index.en.shtml Tricky

challenges] In general, there are four main methods for offering

microinsurance the partner-agent model, the provider-driven model,

the full-service model, and the community-based model



1 In this model, microinsurance schemes benefit from limited risk, but are also disadvantaged in their

limited control



1 *'Full service model': The microinsurance scheme is in charge of everything; both the design and delivery of products to the clients, working with external healthcare providers to provide the services. This model has the advantage of

offering microinsurance schemes full control, yet the disadvantage of

higher risks.https://store.theartofservice.com/the-microinsurance-toolkit.html


1 *'Provider-driven model': The healthcare provider is the

microinsurance scheme, and similar to the full-service model, is

responsible for all operations, delivery, design, and service. There

is an advantage once more in the amount of control retained, yet

disadvantage in the limitations on products and services.


Micro-insurance - Microinsurance scheme

1 A microinsurance scheme is a scheme that uses, among others, an insurance mechanism whose

beneficiaries are (at least in part) people excluded from formal social protection schemes, particularly, informal economy workers and their families. The scheme differs from others created

to provide legal social protection to formal economy workers. Membership is not

compulsory (but can be automatic), and members pay, at least in part, the necessary

contributions in order to cover benefits.



1 The expression microinsurance scheme designates either the

institution that provides insurance (e.g., a health mutual benefit

association) or the set of institutions (in the case of linkages) that provide insurance or the insurance service

itself provided by an institution that also handles other activities (e.g., a

micro-finance institution).https://store.theartofservice.com/the-microinsurance-toolkit.html


1 Microinsurance schemes may cover various risks (health, life, etc.); the

most frequent microinsurance products are:



1 * Life microinsurance (and retirement savings

plans)



1 * Health microinsurance (hospitalisation, primary health care, maternity, etc.)



1 * Disability microinsurance



1 * Property microinsurance – assets, livestock,

housing



1 * Crop microinsurance



1 Dirk Reinhard provides a good list summarising reading pertinent to

microinsurance. [http://www.inwent.org/ez/articles/167106/index.en.shtml Small means,

massive impact]


Micro-insurance - Microinsurance and development

1 Furthermore, microinsurance

makes it possible for people to take more

riskshttps://store.theartofservice.com/the-microinsurance-toolkit.html

Micro-finance - Microfinance and social interventions

1 Pro Mujer uses a “one-stop shop” approach, which means in one

building, the clients find financial services, business training,

empowerment advice and healthcare services combined.Microinsurance -

Healthy Clients http://www.dandc.eu/en/article/pro-mujer-why-microfinance-institutions-should-offer-healthcare-services-too


Global Risk Forum GRF Davos - Bibliography

1 * Ammann, W.J., Amsicora Onnis, G., Morelli, E., Sutter, C. (eds.):

Microinsurance. An innovative tool for risk and disaster management.

Davos, 2010.


Opportunity International - History

1 As the world’s first microinsurance intermediary, MicroEnsure provides protection against the many risks faced by those living in poverty


Economy of Morocco - Insurance

1 There is also the possibility that new insurance niches such as takaful

(Islamic insurance) and microinsurance products will become part of the Moroccan market in the medium-term, but they are unlikely

to appear in the near future.


Microfinance institution - Microfinance and social interventions

1 Pro Mujer uses a “one-stop shop” approach, which means in one

building, the clients find financial services, business training,

empowerment advice and healthcare services combined.Microinsurance -

Healthy Clients http://www.dandc.eu/en/article/pro-mujer-why-microfinance-institutions-should-offer-healthcare-services-too


Innovations for Poverty Action - Microfinance

1 IPA performs many evaluations of microfinance programs and products, including microcredit, microsavings, and microinsurance. IPA is part

of the Financial Access Initiative (FAI), a consortium launched with the support of a $5

million grant from the Bill Melinda Gates Foundation with the goal of increasing

knowledge about microfinance and communicating research lessons to a broad

spectrum of policy makers, microfinance institutions, and the public at large.


Micro Insurance Centre

1 'The Microinsurance Centre' was created in 2000 out of an initiative of

MicroSave in Africa. It is as an independent institution dedicated to

promoting responsible microinsurance, with their focus on

the partner-agent model. The partner-agent model links

microinsurance schemes (hosted primarily by MFIs) to established

commercial insurance companies. This link allows the risk of the

schemes to remain with the insurer, and thereby can enable greater

sustainability and long-term viability.


Micro Insurance Centre

1 The Microinsurance Centre works on two fronts, helping to establish

proper dialogue on micro-insurance policies and helping to set up proper

microinsurance schemes


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