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

A new regulator? Better empower ASIC
The Australian financial services industry and Australia's financial advisers already have regulator dedicated to policing standards ...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

Thought leadership and the art of living dangerously
Superannuation is one of the Australian economy's major pillars and it is time its leaders stepped out from behind their abacuses and ... read more
News Search   
VideoBrought to you by
Zurich Investments Global Growth Share Fund
The pool of investable funds in the retail sector is ever growing, and as investors become more sophisticated the appetite for global equities is only going to increase. In this video, Noble says with ... Watch video
The New Neutral
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
Colonial First State Multi-Asset Real Return Fund
Find out more about the investment philosophy and objective of the Colonial First State Multi-Asset Real Return Fund. Senior Portfolio Manager, Kej Somaia explains. Watch video
Introduction to Series #07
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
Managed Accounts Forum 2014 Highlights
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... 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
OCT
23
OCT
28
Unlock the value of diversification with mFund
30
Unlock the value of diversification with mFund
NOV
05
ALTERNATIVE INVESTMENTS 2014 CONFERENCE
12
Global CIOS Symposium
13
2014 Financial Standard Social Media Influence, Leadership + Excellence Scholarship Program (SMILEYS)
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 wHEKiyCn