Swiss Re publishes latest sigma study on microinsurance
Swiss Re’s latest sigma study "Microinsurance - risk protection for 4 billion people" emphasises the relevance of microinsurance as an effective and viable risk management solution for low-income individuals. Microinsurance, which has the potential to cover up to 4 billion people, concentrates on few risks today, but its scope is broadening. The interest of insurers in microinsurance lies very much in its future potential.
The study idenitifies the Asia-Pacific region as the fastest growing and largest microinsurance market, while microinsurance has also seen considerably growth in the African and Latin American countries despite these being relatively smaller microinsurance markets.
The study is currently available in English, German, French and Spanish, while Chinese and Japanese will be available shortly.
Read overview of report or download full report
The landscape and capacity of informal sector aggregators as potential microinsurance delivery partners in Zambia
PMTC (Zambia) has recently completed a study for the FinMark Trust in southern Africa to assess the scope for alternative distribution of microinsurance in Zambia through aggregators of clients in the informal sector. Aggregators are third party organisations which provide a potential touch point with members/clients for insurance distribution purposes. The study aimed to scope the landscape of potential aggregators in Zambia and assess their capacity and interest to act as insurance delivery channels.
Key findings include:
- Use of third party aggregators such as mobile phone companies: Zambia’s mobile phone network has been rapidly expanding with good access now measured among the adult population. Mobile and e-payments are becoming an important feature of cash and transfer payment services. Insurance companies will need to embrace such innovation for marketing, premium collection and claims payouts. There is scope for insurers to pursue the use of retail and utility companies which has proved effective in other countries.
- Entrepreneurial associations also offer promising channels: Members of these associations often have significant exposure and orientation to informal savings and insurance.
- Microfinance institutions are easy channels for microinsurance products. However, Zambia’s insurers need to develop insurance products beyond the current credit life and funeral policy offerings.
- Affinity groups such as churches present a potential new distribution channel for Zambia’s insurers. However, there is need to think innovatively of ways of working with these groups as they are often not commercially oriented and not structured in a way that easily support financial relationships.
Click here to download study
New briefing notes on innovations and practices in microinsurance
These three notes, published by the ILO's Microinsurance Innovation Facility, focus on a variety of topics which encompasses some of the innovations and practices in microinsurance:
Click here to view more detailed descriptions of notes