Register  
Microinsurance reaches 500m people
Wednesday, 11 April 2012 12:15pm

Following in the footsteps of microfinance, microinsurance schemes have grown substantially in the past five years to now reach an estimated 500 million policy holders.

Microinsurance aims to protect poor people in emerging nations against traditional risks such as accidents, illnesses, death in the family, natural disasters and property losses with premium payments tailored to their capacity to pay, according to the Microinsurance Innovation Facility of the International Labour Organization and the Munich Re Foundation.

The ILO's Microinsurance Innovation Facility was launched in 2008 with the support of a grant from the Bill & Melinda Gates Foundation.

"Since 2008, we have seen numerous innovations emerging to overcome the challenges of providing viable insurance services to more low-income people," says Craig Churchill, team leader of the ILO's Microinsurance Innovation Facility and chair of the Microinsurance Network.

Asia represents 80% of the microinsurance market, driven by demand in China and especially India where 60% of the market resides. Latin America accounts for 15% and Africa makes up 5%, notes a new edition of the microinsurance compendium released by the Facility and the Munich Re Foundation.

Asia is so central to microinsurance because of its large and dense populations, interest from public and private insurers and relevant distribution channels that include local and village bank branches, retailers and phone companies.

"What the developed world took several hundred years to accomplish cannot be replicated within a decade in the developing world, even given all the new technology and knowledge that is now available," said Dirk Reinhard, vice chairman of the Munich Re Foundation.

On the back of this success, commercial insurers are now entering the low-income market with at least 33 of the world's 50 largest commercial insurance companies now offering microinsurance, up from only seven in 2005.

The compendium warns that microinsurance is unlikely to break the cycle of poverty by itself, but is nonetheless valuable as a poverty alleviation tool because so much hardship is caused by the inability to recover from disasters and personal catastrophy.

When coupled with microfinance solutions and well targeted government and NGO support, microinsurance can play a critical role in many emerging nations, noted the compendium.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

It needs to be said, most advisers are great advisers
Emotions are running high among financial advisers and it's not surprising. Over the past year, but especially over the last few weeks ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

We need leadership, but whose?
What do you call a leader with no followers? Just someone out taking a walk. Financial services is an odd industry sector in that ... read more
News Search   
VideoBrought to you by
Who wants to be a RockStar 2014 Highlights
Count's Chris Mekhail was crowned 2014 Rockstar this year for his soaring rendition of Swedish House Mafia hit 'Don't You Worry Child' at the annual Who wants to be a RockStar event organised by the Finance ... Watch video
MAX 2014 Highlights
The annual MAX forum places all the movers and shakers in financial services when it comes to sales, marketing and distribution. Find out the recipe of those who are taking the lead. Watch the video n ... Watch video
Member Awareness
Lawyer involvement in the claim assessment stage can lead to the member being financially worse off and increases claims administration costs. What can be done to reduce lawyer involvement in the claim ... Watch video
Platinum Asset Management
Reflecting on more than three decades in the industry, Platinum Asset Management managing director Kerr Neilson says one of the changes in the industry has the been the erosion of the information advantage ... Watch video
Claims Management
Is the industry doing enough to engage employers in relation to their role in the claims process? Comments by: Annette Torrington -CommInsure, Pauline Vamos - Association of Superannuation Funds Australia ... Watch video
AMP Capital Australian Equity Concentrated Fund
We invite you to watch our latest video program on FSiTV featuring AMP Capital's Co-Head of Australian Fundamental Equities Gian Pandit, as interviewed by Mark Smith, deputy editor of Financial Standard. In ... Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
JUL
29
AUG
06
FSC Annual Conference 2014 - Accelerate
13
Equities Forum
14
Alternative Investments 2014 Conference
26
Best Practice Forum: Managed Accounts
SEP
10
Risk and Liquidity Forum
News
Bites

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something 1UZp7ig0