MICROCAPITAL BRIEF: International Labor Organization’s (ILO’s) Impact Insurance Facility, Africa Reinsurance Corporation (Africa Re) Partner to Promote African Microinsurance

The Impact Insurance Facility (IIF) of the International Labor Organization (ILO), an agency of the United Nations, and Africa Reinsurance Corporation (Africa Re), a Nigeria-based corporation that assists reinsurance institutions and invests in the African insurance sector, have agreed to partner to promote inclusive microinsurance markets for the financially excluded population in Africa[1]. Under this project, Africa Re is to provide financial assistance toward “mutually-selected initiatives”[2] of IIF that will assist financially-excluded “low-income households, small enterprises and smallholder farmers”[1]. The project will also promote “cross-country collaboration”[3] and training for insurance practitioners.

Based in Switzerland, the Impact Insurance Facility was launched in 2008 as the Microinsurance Innovation Facility with a donation of USD 34 million from the US-based Bill & Melinda Gates Foundation. Its mission is to enable the insurance industry, governments and their partners to realize the potential of microinsurance with an emphasis on agriculture, health, life and property insurance [3].

Africa Re was launched in 1976 and given the legal authority through an international agreement signed by 36 member states of the Organization of African Unity (OAU) and African Development Bank (AfDB) to foster the development of Africa’s insurance and reinsurance industries. As of 2014, Africa Re reported total assets of USD 1.4 billion.

By Hye In Arielle Oh, Research Associate

About Africa Reinsurance Corporation (Africa Re)

Africa Reinsurance Corporation (Africa Re) was established on February 24, 1976, in Yaounde, Cameroon and its head office is based in Lagos, Nigeria. Africa Re was given legal authority to “foster the development of the insurance and reinsurance industry in Africa” through an international agreement signed by 36 member states of the Organization of African Unity (OAU) plus the African Development Bank (AfDB) as of 2015. The organization’s fields of activity include: reinsurance transactions, assisting in the establishment of reinsurance institutions and investing its reserves in African countries. As of 2014, Africa Re reported total assets of USD 1.4 billion.

About International Labor Organization’s (ILO’s) Impact Insurance Facility (IIF)

Launched in 2008 with a donation of USD 34 million from the US-based Bill & Melinda Gates Foundation, the Impact Insurance Facility (IIF), is housed at the International Labour Organization’s (ILO’s) Social Finance Programme. Formerly known as the Microinsurance Innovation Facility, the entity’s goal is to enable the insurance industry, governments and their partners to realize the potential of impact insurance with an emphasis on agriculture, health, life and property insurance. IIF has an annual operating budget of USD 1.5 million. IIF also provides technical assistance and advice. As of 2015, it has received funding from donors including Z Zurich Foundation, Munich Re Foundation, the World Bank Group (WBG), the United States Agency for International Development and Australian Agency for International Development in addition to the Bill & Melinda Gates Foundation. ILO is an agency of the United Nations and is located in Geneva, Switzerland.

About International Labor Organization (ILO)

Founded in 1919, the International Labour Organization (ILO) is an agency of the United Nations. The objective of ILO is “to advance opportunities for men and women to obtain productive work in conditions of freedom, equity, security and human dignity”. Headquartered in Switzerland, ILO has proposed a budget plan of USD 797 million for the biennium 2016-2017. The International Labour Office is the permanent secretariat of ILO.

Sources and Additional Resources:

[1] International Labour Organization, “The ILO’s Impact Insurance Facility and Africa Re partner to enhance the microinsurance markets in Africa,” http://www.ilo.org/addisababa/media-centre/pr/WCMS_419564/lang–en/index.htm

[2] Punch Nigeria, “Africa Re seals pact with ILO on microinsurance,” http://www.punchng.com/?p=5050

[3] Impact Insurance, “Enhancing the development of microinsurance markets in Africa,” http://www.impactinsurance.org/partner/africa-re

[4] MicroCapital: “MICROCAPITAL BRIEF: International Labour Office’s (ILO’s) Impact Insurance Facility, Agence Francaise de Developpement (AFD) Seek to Stimulate Innovation in Microinsurance in Sub-Saharan Africa,” https://www.microcapital.org/microcapital-brief-international-labour-offices-ilos-impact-insurance-facility-agence-francaise-de-developpement-afd-seek-to-stimulate-innovation-in-microinsurance-in-sub-sahar/

[5] Africa Re, “Annual Reports,” http://www.africa-re.com/investorinformation/page/21/annual-reports

[6] International Labor Organization, “Programme and Budget proposals for 2016-2017,” http://www.ilo.org/wcmsp5/groups/public/—ed_norm/—relconf/documents/meetingdocument/wcms_342199.pdf

MicroCapital Universe, “Africa Reinsurance Corporation (Africa Re),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Africa+Reinsurance+Corporation+%28Africa+Re%29

MicroCapital Universe, “International Labor Organization (ILO)’s Impact Insurance Facility (IIF),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Labour+Organization%27s+%28ILO%27s%29+Impact+Insurance+Facility

MicroCapital Universe, “International Labour Organization (ILO),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Labour+Organization+%28ILO%29

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