Latin American risk carriers should consider microinsurance as a serious alternative for growth
ILO's Microinsurance Innovation Facility, May 2011
Microinsurance in Latin America has developed in two complementary ways. The high penetration of microfinance in the region has created awareness about the potential of the low-income market and has encouraged customers to demand financial products that match their needs in countries like Bolivia, Ecuador and Peru.
Competition for insurance market shares in countries like Mexico, Chile, Brazil and Colombia, has led risk carriers to explore the potential beyond the middle and upper class clientele that constitutes their traditional market.
Read full article
Microinsurance plan for victims of terrorism and natural disasters in Pakistan
Dawn, 29 May 2011
The Khyber Pakhtunkhwa government in northern Pakistan, with the collaboration of the German government, will implement a Social Health Protection Policy (SHPP) to provide free health facilities to the victims of terrorism and natural calamities.
"The policy seeks to help the people affected by militancy and natural calamities. A microinsurance plan is being devised under which each poor family will also receive a cash assistance of PKR 25,000 (USD 290) besides free health facilities," said a government official.
A Memorandum of Understanding has been inked between the German government and the provincial health department to implement the policy in Kohat, Mardan, Malakand and Chitral.
The German government will provide 10 million Euros out of which 10% will be spent on hiring an international audit firm to ensure transparency while 15% will be kept as a reserve fund.
According to the initial estimates, the policy will directly benefit 700,000 people over a period of five years. According to the mechanism, the provincial government will start giving 30% subsidy to people after three years of the implantation of SHPP. The poor residents of the target districts will be entitled to full subsidised health services after five years.
Read full article
Tax exemption urged for microinsurance in the Philippines
The Visayan Daily Star, 20 May 2011
Microinsurance companies are urging the House of Representatives to enact a law that will exempt microinsurance from taxes to bring down its cost and directly benefit Filipinos. The microinsurance companies made the appeal during a recent symposium on the present concept of microinsurance and its current state in the country.
Jhun Benedicto, Chairman of Philippine Insurers and Reinsurers Association, the umbrella organisation of all non-life insurance companies in the Philippines, said removing the taxes will bring down the cost of microinsurance by about 25 percent.
"The tax exemption will directly benefit our fellow Filipinos. As of now, the taxes on non-life insurance policies include the 12.5% documentary stamp, 12% EVAT, 0.5% local government tax, 2% fire service tax (for fire policies)," Benedicto said.
Read full article
Ethiopian farmers offered crop microinsurance in return for labour
MicroCapital, 19 May 2011
Oxfam America, a subsidiary of UK-based relief agency Oxfam International, and the World Food Program (WFP), a unit of the United Nations (UN), have developed a crop insurance initiative that allows Ethiopian farmers to acquire microinsurance policies in return for either cash or labour, extending WFP’s existing food-and-cash-for-work programme.
The microinsurance product provides cover against drought using a rainfall index, wherein a farmer is paid if rainfall occurs at or below a level that is likely to result in poor agricultural output. Instead of paying cash for the insurance cover, farmers have the option of working on local forestry, soil and irrigation projects that are meant to mitigate the effects of climate change.
David Satterthwaite, a senior global microinsurance officer at Oxfam and the owner of MicroCapital explains that, "It not only speeds the recovery of farmers with a cash payout so they can meet their immediate expenses, but it can make it easier for them to get credit and plan for the future".
In 2009, 200 families took out policies insuring their crops for a total value of USD 2,500, with two thirds providing labour and the others paying cash. In 2010, the programme grew to cover 1,300 farmers in five villages raising crops including wheat, barley and sorghum. During 2011, Oxfam and partners are expecting to reach 45 villages and 13,000 families.
Read article
Kenya's CIC Insurance plans to be listed on the Nairobi Stock Exchange in 2012
Reuters, 16 May 2011
Kenya's CIC Insurance Group, the third-largest life insurer in east Africa's biggest economy, plans to list on the Nairobi Stock Exchange (NSE) in the second quarter of 2012, officials said.
Shareholders approved the listing at the company's annual meeting and also agreed to an increase in the company's authorised capital to 3 billion shillings ($34.8 million) from 1.2 billion, by creating 90 million ordinary shares.
"Funds realised through the ... listing on the Main Investment Segment of NSE will mainly go towards expanding to Malawi, Rwanda and south Sudan," it said in a statement. The insurer is looking to tap the microinsurance market to increase its revenue base through the use of more easily accessible payment platforms to reach the mass market.
"We project to rake in 7.5 billion shillings in 2011 by improving distribution and premium payment modes to suit the intermittent income of the lower market segment," said Nelson Kuria, CIC Insurance managing director.
Read full article
Faith based organisations take part in microinsurance event in Fiji
Scoop Independent News, 11 May 2011
Representatives of faith based organisations in Fiji participated in a workshop to learn more about microinsurance and help identify the most suitable features of a microinsurance product that would protect their low-income members from losses and risks.
The microinsurance planning event was organised by the Pacific Financial Inclusion Programme (PFIP) and was attended by more than a dozen representatives of a wide range of faith based organisations. It covered issues like the demand for microinsurance, the availability of microinsurance products and information on a research being conducted identify the most suitable microinsurance product that meets the needs of low-income people in Fiji.
PFIP’s Anne Nacola said the event was targeted towards faith based organisations to get a true picture of the community’s needs. PFIP plans on conducting a survey with these organisations and others to help insurance companies understand what opportunities there are to reach lower income households.
Read full article
Manulife launches microinsurance product in the Philippines
Business World Online, 8 May 2011
Manufacturers Life Insurance Co., Inc. (Manulife Philippines) has ventured into the broad insurance market with its first low-cost product. The product, FirstProtect, has been designed to address the need to insure the majority of the Philippine population.
FirstProtect provides life and accident protection for 10 years, with premiums costing around PHP 470 (USD 10) per month. It guarantees to pay out 100% of the coverage amount upon the death of the policyholder within the 10-year policy period.
Should the death be due to an accident, the policy pays an additional 200% of the coverage amount, tripling the total payout to beneficiaries. Policyholders can also enjoy a maturity benefit should they survive after the policy period, with 25% of their premiums to be returned.
Read full article
|
