[Microinsurancefocus] NEW Microinsurance in Focus Notes are now available!

[Microinsurance Network]

     NEW  <http://www.microinsurancenetwork.org/focusnotes.php> Microinsurance in Focus Notes

                               http://www.microinsurancenetwork.org/focusnotes.php

 

 

The Microinsurance Network has published a new version of Microinsurance in Focus notes, available in English, French, Spanish and Portuguese. These notes are based on the book Protecting <http://www.munichre-foundation.org/StiftungsWebsite/Projects/Microinsurance/2006Microinsurance/Microinsurance_Compendium.htm>  the Poor: A Microinsurance Compendium, published on behalf of the Microinsurance Network (formerly known as CGAP Working Group for Microinsurance), the International Labour Organization (ILO) and the Munich Re Foundation.

 

The topics are:

 

Nr. 1: Marketing: Promoting insurance to the poor 

Many people, rich or poor, are reluctant to buy insurance because they do not want to think about loss, illness or death. Indeed, regardless of the economic status of the target market, the old adage “insurance is sold, not bought” holds true.

 

Nr. 2: Product design and insurance risk management 

Upon entering the low-income market, insurers should first establish the need and demand for insurance, determine the risks that can be insured, and devise insurance risk management processes for ensuring the product’s viability.

 

Nr. 3: Premium collection: Minimizing transaction costs and maximizing customer service

The low-income market that microinsurers target presents its own unique challenges to collecting premiums. Primary premium collection mechanisms used by mainstream insurers such as salary deductions from employers or debit orders from bank accounts are often not an option.

 

Nr. 4: Strategies for sustainability 

The sustainability dilemma comes down to a trade-off between three competing objectives for a real value product: Coverage, operating and transaction costs for the insurer and the product’s affordability.

 

Nr. 5 : Organizational development in microinsurance 

To achieve objectives, a microinsurance provider needs to be creative in training and rewarding workers. This note examines five aspects of organizational development: Organizational structure, recruitment, training, compensation, and institutional culture.

 

Nr.6 : Loss prevention and control 

Loss prevention, loss minimization and loss control are often used interchangeably. Loss prevention involves initiatives to avoid the occurrence of risk, especially insured events. Loss minimization strives to reduce the impact of risks when they do occur. Together, these two activities amount to loss control.

 

Nr. 7 : Recommendations for commercial insurers 

Low-income households could potentially become an exciting and modestly profitable new niche for commercial insurers. However, the poor represent a unique target market that requires a different approach.

 

Nr. 8: Microinsurance: What can donors do? 

In most countries, reaching scale and providing real value to clients is likely to require donor involvement in the medium term. Donors will need appropriate expertise and resources to engage effectively in microinsurance because it is relatively new, complex, and risky.

 

Nr. 9: Claims processing: Some general comments 

Without efficient and effective claims processing, it will be impossible to offer affordable real value products to low‐income households since their settlement is when the insurers can fulfill their promises and prove to the insured that they are trustworthy.

 

Nr. 10: Role of governments 

Governments can facilitate, among others, market development by promoting microinsurance through a variety of mechanisms, including the creation of an enabling environment, education and social marketing, and the provision of financial assistance.

 

Nr. 11: Mutuals, cooperatives and community-based insurers 

The mutual model embodies the social and commercial dimensions of microinsurance.  A mutual is a company or association that is owned and governed by its members. Policyholders share the returns and possibly the risks of the scheme.

 

Nr. 12: Providing insurance of real value to the poor 

This final Microinsurance in Focus Note has been written by Ellis Wohlner and concludes the series with reminding us that microinsurance is at the end of the day about providing real value to the poor.

 

The book and notes are based on the Good and Bad Practices project led by the Operations Working Group, and funded by DFID, GTZ, the ILO and SIDA.

 

The objective of these notes is to make the compendium's content more accessible and are available in English, French, Spanish and Portuguese.

 

For more information, visit www.microinsurancenetwork.org 

 

Matthew Genazzini, І Communication Officer 

 <mailto:veronique.ada at microfinance.lu> matthew.ada at microfinance.lu І Tél.:+352/45.68.68.23 І Fax.:+352/45.68.68.68

Microinsurance Network І c/o ADA asbl І 21-25 Allée Scheffer І L-2520 Luxembourg  <http://www.microinsurancenetwork.org/> www.microinsurancenetwork.org

P Before printing, think about the environment 

 

 

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