Microinsurance Network, a member-based organization that works to advance insurance in poor countries, recently released its report, “Commercial Insurers in Microinsurance,” that examines the incentives and long-term prospects for the involvement of commercial companies in microinsurance [1]. This study is part of the Network’s effort to share lessons and promote good practices.
Most of the 24 companies surveyed reported that they entered the microinsurance market in the last five years and believe that the supply and demand of microinsurance will double over the next three years. The challenges cited by respondents include the high cost of distributing products relative to low premiums, the lack of insurance awareness and understanding among the consumers, the lack of distribution channels and the lack of reliable data for proper risk assessment and premium calculation.
The study concludes that commercial companies believe that the long-term benefits of entering this new market will outweigh the initial investments. They perceive the benefits as being “both tangible, in terms of offering a product that is financially sustainable, as well as intangible in terms of increasing brand awareness.”
For the full report, you may visit: http://www.microinsurancenetwork.org/publication/fichier/MiN_Commercial_…
By Nisha Koul, Research Associate
About Microinsurance Network: Originally established in 2002 as the CGAP (Consultative Group to Assist the Poor) Working Group on Microinsurance, the Microinsurance Network was spun off as an independent organization in 2009. Based in Luxembourg, the membership organization aims to promote the development of insurance products for low-income populations by providing a platform for information sharing and stakeholder coordination. As of 2011, it reports 52 member organizations.
Sources and Additional Resources:
[1] Microinsurance Network Press Release, http://www.microinsurancenetwork.org/file/MiN_Commercial_study_PR.pdf
MicroCapital.org story, May 16, 2011, “MICROCAPITAL BRIEF: Microinsurance Network Releases Coverage Of “Microinsurance Debate on Public-Private Partnership (PPP),” https://www.microcapital.org/microcapital-brief-microinsurance-network-releases-coverage-of-%E2%80%9Cmicroinsurance-debate-on-public-private-partnership-ppp%E2%80%9D-2/
MicroCapital Universe Profile: Microinsurance Network: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Microinsurance+Network
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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