“’Doing the Math’ with Property Insurance in Ghana;” by Barbara Magnoni, et al; published by the Microinsurance Centre; May 2012; 9 pages; available at: http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/868-milk-brief-10-qdoing-the-mathq-with-property-insurance-in-ghana.html
This document discusses the results of a study carried out as a part of the Microinsurance Learning and Knowledge (MILK) Project, an initiative of the Microinsurance Centre, a US-based affiliate of Indian consultancy Microsave; MicroEnsure Ghana, a microinsurance intermediary affiliated with US-based Opportunity International; and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a development agency of the German government. The study examines how useful insurance is in coping with a flood by considering the example of a group of entrepreneurs insured under “Obra Pa,” a mandatory product bundled with microcredit from all microfinance institutions (MFIs) in Ghana that covers disability and damage due to fire, flood and earthquakes. The study finds that the debt relief component of the insurance product is valuable to clients; of uninsured individuals, only 4 of 28 had their loans restructured after the shock. The study also indicates that the loan forgiveness feature improved clients’ ability to borrow from formal and informal sources after the shock, contradicting evidence from previous studies. According to the study, insured clients are more likely to shift towards using informal sector loans after a shock, although the authors are unable to explain this shift. Overall, the study finds that insured clients in the study recovered faster after the flood than those who were uninsured.
“Market Outlook 2012: Perspectives of Microfinance Association Leaders;” by Karla Brom; published by the Small Enterprise Education and Promotion (SEEP) Network; 2012; 25 pages; available at: http://www.seepnetwork.org/filebin/pdf/resources/Market_Outlook_web_en.pdf
This document presents the results of a survey of associations of microfinance institutions (MFIs) in Latin America and the Caribbean, Africa, Eastern Europe and Central Asia, Asia and the Middle East. The survey indicates that the priorities of and threats to MFIs are intertwined and include: (1) the role of governments such as in the regulation of the microfinance sector, political interference, subsidized lending and political and economic instability; (2) competition and its effects such as over-indebtedness; and (3) the need for a renewed focus on clients, including adopting codes of conduct, improving social performance management and researching market appetite for new products and services.
“Microfinance Investment in Sub-Saharan Africa: Turning Opportunities into Reality;” by Jasmina Glisovic, et al; published by CGAP (Consultative Group to Assist the Poor); June 2012; 4 pages; available at: http://www.cgap.org/gm/document-1.9.57813/Brief_SSA.pdf
This brief analyzes public and private foreign investment and the challenges and opportunities it presents to microfinance institutions (MFIs) in Sub-Saharan Africa (SSA). The authors looked at public information, reviewed data from CGAP (Consultative Group to Assist the Poor) and conducted interviews with 30 investors and stakeholders. The authors find that deposit funding is the most common form of financing within MFIs in SSA, followed by investments in the form of equity and debt. Financial cooperatives, non-bank financial institutions and banks dominate as microfinance providers in the region, although each of these organization types leads the market in different sub-regions. The two biggest problems found in the microfinance sector are lacks of market infrastructure and market information, such as the absence of public credit registries that serve the microfinance market. Other problems include insufficient regulation and macroeconomic and political instability. However, the investors interviewed indicated that they tolerate a higher risk threshold for SSA and are willing to invest in most SSA countries.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
“’Doing the Math’ with Property Insurance in Ghana,” http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/868-milk-brief-10-qdoing-the-mathq-with-property-insurance-in-ghana.html
“Market Outlook 2012: Perspectives of Microfinance Association Leaders,” http://www.seepnetwork.org/filebin/pdf/resources/Market_Outlook_web_en.pdf
“Microfinance Investment in Sub-Saharan Africa: Turning Opportunities into Reality,” http://www.cgap.org/gm/document-1.9.57813/Brief_SSA.pdf
MicroCapital.org story, June 11, 2012, “MICROFINANCE PUBLICATION ROUND-UP: Financial Service Needs in Mexico; Evaluation of an Insurance Education Radio Campaign in Kenya; Self-Assessment of Governance,” https://www.microcapital.org/microfinance-publication-round-up-financial-service-needs-in-mexico-evaluation-of-an-insurance-education-radio-campaign-in-kenya-self-assessment-of-governance/
MicroCapital.org story, June 2, 2012, “MICROFINANCE PUBLICATION ROUND-UP: Global Microfinance Equity Valuation Survey; Microfinance Governance Indicators; Audio Report: Role of Brokers in Microinsurance,” https://www.microcapital.org/microfinance-publication-round-up-global-microfinance-equity-valuation-survey-microfinance-governance-indicators-audio-report-role-of-brokers-in-microinsurance/
MicroCapital Universe Profile: Microinsurance Centre
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