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The Microinsurance Innovation Facility has just released two Briefing Notes on Microinsurance accessible here. Below are highlights of the Notes.
Formalizing the Informal Insurance Inherent in Migration (Briefing Note N°6)
In our increasingly global economy, labor continues to be a major export commodity for many developing countries. Migration can help families mitigate their risks by increasing overall income levels and diversifying income sources. Yet, many migrants tend to find themselves in positions of vulnerability in their host countries without any access to social safety nets. Emergencies can, thus, quickly erode any savings or assets that the migrant has. Migrant-linked insurance products can help transnational families manage their risks and protect their assets. The note explores the existing and potential links between migration, remittances and insurance. It provides a mapping of migration-linked microinsurance products, a framework for how to think about them, and an outline of the opportunities and challenges for microinsurers interested in developing products for this market segment.
Beyond Sales: New Frontiers in Microinsurance Distribution (Briefing Note N°7)
Achieving scale through cost-effective distribution is one of the biggest challenges facing insurers in low-premium environments. In an effort to effectively reach a large client base, the emphasis is increasingly falling on innovative new distribution models as alternatives to traditional microinsurance distribution approaches, which typically rely on distribution through microfinance institutions (MFIs). The note considers the experiences of a group of leading microinsurance innovators and, in particular, the role that new distribution approaches has played. It takes stock of what innovation in microinsurance distribution means and considers the performance of fourteen new microinsurance business models in South Africa, Colombia, Brazil and India in the distribution context. It also provides a summary of the cross-cutting issues and trends emerging across the different distribution models.
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