Faulu Advisory Services acquires insurer in Kenya
Business Daily Nairobi, 23 November 2009
Faulu Advisory Services, a fully owned subsidiary of microfinance group Faulu Kenya, has acquired an insurance brokerage company as it seeks to diversify its offerings by getting a piece of the untapped business.
The microfinance firm has now taken full control of Trustmark Insurance Brokers at an undisclosed price, and a notice published in the latest Kenya Gazette indicates that Finance Minister Uhuru Kenyatta gave the deal the nod on November 11.
"In exercise of the powers conferred by Section 31 of the Restrictive Trade Practices, Monopolies and Price Control Act, the Deputy Prime Minister and Minister for Finance hereby authorizes the proposed acquisition of Trustmark Insurance Brokers by Faulu Advisory Services Limited Magazines," says Mr Kenyatta.
The move underlines the growing trend in the local financial services of having integrated financial service models -- which spans from trading shares, selling insurance products to offering loans -- which has come under scrutiny in the US in the wake of the financial crisis.
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The Micro Insurance for Low Income Earners (MILE) in Sierra Leone prepare for new microinsurance scheme
Awoko, 20 November 2009
The Micro Insurance for Low Income Earners (MILE), an off spring of the Industrial Credit Society (ICS) has been established as a microinsurance scheme targeting low-income earners in our deprived society. It is a poverty mitigation drive providing assistance for small enterprise development and self-reliance for grassroots people.
The Executive Chairman of the organization Mr. Vidal B. Roberts mentioned that the programme targets petit traders, hawkers, omolanke pushers, teachers, clerks, low wage employees of government and private sector; and said that the program is equally going to benefit people in the provinces, especially the deprived communities in rural areas.
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Lloyd's: Microinsurance offers benefits to insurers
Business Insurance, 19 November 2009
Commercial insurers can capitalize on new opportunities to grow their businesses by participating in the microinsurance market, a report from Lloyd’s of London concludes.
The report, “Insurance in Developing Countries: Exploring Opportunities in Microinsurance,” says the success of microcredit programs for people with low incomes in developing nations proves that there is a market in those countries for microinsurance.
“Besides profits, there are several other benefits for commercial insurers providing microinsurance: a larger and diversified risk pool, benefits to reputation, and market intelligence and innovation that can be applied to other business activities,” the report states.
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Muang Thai adopts new microinsurance approach
Bangkok Post, 19 November 2009
After pioneering event/music marketing services and educational activities to promote brand awareness and attract customers for several years, Muang Thai Life Assurance is building up a new marketing ground to tap into grassroots communities.
Instead of ramping up the number of salespeople to sell its life insurance products or offering any sorts of donations or contributions to rural people, Muang Thai Life Assurance, which dubs itself "the company of forward-looking people," has initiated community development programmes under a microinsurance marketing scheme that it believes will help better create good long-term relationships with villagers.
Under the programmes, local sales agents, special teams and volunteers stay and work closely for a month with rural communities, educational institutions, social activists, and villagers. They help upgrade community welfare facilities and shopping outlets to increase people's incomes and educate them on how to manage their spending and saving more systematically. The goals are to strengthen the rural communities and transforming them into self-reliant and self-sufficient ones.
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Ahead of Copenhagen, Reinsurers Put Climate Change Risk on Strategic Agenda
Insurance News Net, 18 November 2009
While the upcoming United Nations climate conference in Copenhagen will aim for a new treaty to replace the Kyoto Protocol of 1997, the reinsurance and insurance industries are putting climate change mitigation measures on their strategic agenda.
A host of projects are ongoing related to insurance coverage to combat climate change risks and to support renewable energy development around the world, said Peter Hoeppe, head of the Georisk unit at Munich Re.
December's Copenhagen climate conference will seek an agreement on a climate treaty, including the regulation of greenhouse gas emissions. The new treaty would have significance implications for insurance risk management, according to Munich Re.
Developing and developed countries should find common ground on climate change risks, said Hoeppe. A global insurance pool is being proposed, to be funded with countries' premium contributions based on their level of greenhouse gas emissions.
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International Hospital buys out Microcare in Uganda
Daily Monitor, 2 November 2009
Some 75 staff of Microcare Health have lost their jobs after the International Medical Group (IMG), the parent company of International Hospital Kampala (IHK), bought out the struggling health insurance provider.
The takeover of Microcare by IHK is expected to be announced in Kampala today, Dr Ian Clarke, the hospital’s Chief Executive Officer, confirmed yesterday.
The Uganda Insurance Commission last week suspended Microcare from writing any new insurance business or renewing the existing policies. The High Court on October 22 dismissed an application from Microcare that sought to stop the insurance commission from suspending it from business.
In suspending Microcare, the insurance commission ordered the troubled company to refund premiums from cancelled policies.
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Philippine Government finalizing Microinsurance Strategy
Business World, 16 November 2009
A Working Group, composed of representatives of the government and the private sector, has approved a draft strategic framework to encourage investments on microinsurance products intended to provide safety nets to the country’s poorest sectors.
Finance Undersecretary Gil S. Beltran said the technical working group (TWG) approved a draft "National Strategy for Microinsurance" in a meeting held in Batangas last Friday.
He said the final strategic framework will be launched early next year after a series of consultations with stakeholders nationwide.
"We are finalizing the strategy for microinsurance. The draft will be presented to stakeholders. It will be the subject of consultations. The TWG approved the draft today (November 13)," he told BusinessWorld last Friday.
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Taiwan's first microinsurance policy issued
Taiwan News, 10 November 2009
Cathay Life Insurance issued Taiwan's first microinsurance policy Tuesday with the aim of providing accidental injury protection to economically disadvantaged people.
According to Cathay Life Insurance, some 1 million Taiwanese between 15 and 65 years of age in eight financially disadvantaged groups are eligible for coverage under the policy. They include single individuals with an annual income of less then NT$250,000 (US$7,765), low-income families, mentally and physically challenged people, fishermen and aboriginal tribes members who receive social welfare.
The face value of the micro injury policy is NT$5,000 and the annul premium is NT$197, therefore, it would have to be purchased by groups of at least 26 people in order to reach the maximum payout of NT$300,000 for accidental death or injury, the insurance company said.
Apart from this, the company said, high-risk low-income households are required to purchase the microinsurance policy with the guarantee of a social welfare group that would serve as a proxy.
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Rural microinsurance scheme launched
Indian Press Information Bureau, 7 November 2009
The Indian government launched a microinsurance drive in Tamil Nadu aimed at expanding the Rural Postal Life Insurance (PLI) network. Communications and Information Technology Minister A. Raja launched the scheme in Sholur Mattam, Coimbatore.
The Rural PLI was introduced by the Department of Posts in 1995 with a specific aim of covering people living in rural areas. Till March, 2009, there were around 4 million PLI policies and around 7.8 million Rural PLI policies.
The microinsurance drive is a special focus scheme within the existing Rural PLI, targeting the weaker sections of society.
"Rural PLI policies are being marketed now not only by the postal staff and Gramin Dak Sewaks, but also by engaging direct agents, aanganwadi workers, self-help groups and cooperatives," Raja said.
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Can insurance help to combat poverty?
Lloyds, 6 November 2009
The microinsurance industry, which offers cover to the world’s poorest people, is growing fast and is predicted to double in size over the next few years. Policymakers and aid experts see its development as playing an important role in offering millions of people around the world greater financial peace of mind and a stepping-stone out of poverty.
This interesting article examines the full potential of microinsurance while also looking at its different challenges.
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Booming Insurance Market in India (2008-2011)
PR-insider, 5 November 2009
With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information. The strong growth potential of the country has also made international players to look at the Indian insurance market.
Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance players, according to "Booming Insurance Market in India (2008-2011.
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Cover up in style - Universal life plans
The Telegraph India, 26 October 2009
Universal life plans are the latest from the insurance stable. Two companies — Max New York Life and Bharti Axa Life — have recently launched plans offering monthly credit of interest. These plans are called universal life plans (ULPs), which are like combining a term life insurance with an interest earning savings account.
After deducting the cost of insurance (the mortality charges) and other charges from the premium, the remaining amount is invested in a general investment fund managed by the insurer. The insurer announces a rate of interest in advance, a month or a quarter, which is credited to the policyholder's account value.
Read full article to find details of this product
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, low-income families, mentally and physically challenged people, fishermen and aboriginal tribes members who receive social welfare.</p>
<p>The face value of the micro injury policy is NT$5,000 and the annul premium is NT$197, therefore, it would have to be purchased by groups of at least 26 people in order to reach the maximum payout of NT$300,000 for accidental death or injury, the insurance company said.</p>
<p>Apart from this, the company said, high-risk low-income households are required to purchase the microinsurance policy with the guarantee of a social welfare group that would serve as a proxy.</p>
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