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 |  | |  | Opportunities, Issues and Challenges
Lifecycle events often add to the vulnerability of the low income segment by adding risks to their life. Such threats are usually dealt with credit or savings services because of aversion towards insurance products. However loans or deposits are not designed to address losses related to critical risks.
Disinclination towards insurance is further fuelled by the fact that despite upfront payments, returns are either long term or made available in case of calamity, a perceived loss as compared to other investment options. This market segment is sensitive to the relation with the provider and in the case of insurance, the level and frequency of interaction is generally lesser and thus low trust. Of the products available in the market, what works best is where a lump sum return is assured at the end of a certain period. Thus microinsurance products have been perceived as long term savings instruments which give an assured return.
With the focus on designing client oriented products, MicroSave has been at the forefront to promote suitably designed microinsurance product from the very beginning. In the early years, MicroSave undertook a number of researches in Africa to assess the needs and supply status of the market and its efforts also culminated in establishing of The Microinsurance Centre. To list a few microinsurance projects:
- Adaptation of the Insurance Module for Opportunity International - Micro Insurance Agency in 2008
- Client Satisfaction with Health Insurance in Uganda (for Microfinance Opportunities) in 2007
- Estimation of demand for Health financial services for FINCA Uganda clients in 2007
- Programme design and management of Health Care financing for DFID and K-Rep in Kenya; 2001-2005
- Review of options of health care financing in Bangladesh, 2007
- Development of market research protocol and training toolkit to develop health care financing products in five countries (Philippines, Benin, Burkina Faso, India and Peru)
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The Microinsurance Centre
In 2000, MicroSave initiated The Microinsurance Centre, an independent institution dedicated to promoting responsible microinsurance. The Centre focuses on promoting the partner-agent model, which helps insurance service providers link to MFIs, who facilitate access to quality insurance services by the end users. The three key areas of focus are:
- Product development
- Microinsurance
- Advocacy
It works through a wide range of partners - insurers, regulators, donors, MFIs, and NGOs in Uganda, Kenya, Ghana, India, Nepal, Jordan, Peru, Laos, and Indonesia. The learning has been well captured in their numerous publications available on their website (http://www.microinsurancecentre.org). | Microinsurance Country Report
In mid 2010 IFC commissioned a study on "Industry Mapping of Small-Balance Deposits in South Asia". The project is designed to help understand the supply and demand of the market for microsavings in four countries: Bangladesh, India, Nepal and Sri Lanka and devise appropriate market-led solutions to expand access to microdeposit and microinsurance services for the low income population. MicroSave was its implementing partner.
As a part of this project MicroSave has undertaken national level studies in the four countries on savings, which include analysis of the microinsurance industry and its regulations. Detailed case studies were developed on some of the micro insurance service providers also.
In addition, a detailed report on the evolution and state of microinsurance in India has also been developed. It is the first report on the microinsurance sector which covers comprehensively the evolution of the sector, the regulations that guide it and their implications, the products that are available and that are in demand and the issues and challenges which result in the gap between the demand and supply.
Please click here to download the full report. |
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Briefing Notes Research Papers
 | | | | | Kitovu Patients Pre-Payment Scheme (Kitovu Hospital, Masaka, Uganda)
by Michael J. McCord, Sylvia Osinde | | MEDIPLUS Health Services - Nairobi, Kenya
by Michael J. McCord, Sylvia Osinde | | Microcare Ltd. Health Plan (Uganda)
by Michael J. McCord, Sylvia Osinde | | Cash, Children or Kind?
by Madhurantika Moulick,
Graham A.N. Wright, Corrinne Ngurukie, Angela Mutua, Moses Muwanguzi, Michael Onesimo | | Poverty Africa Health Programme - Health Microinsurance
by Michael J. McCord, Osinde, Sylvia | | Reducing Vulnerability: Demand for and Supply of Microinsurance in East Africa
by Monique Cohen, Michael J. McCord, Jennefer Sebstad | | Reducing Vulnerability: The Demand for Microinsurance
by Monique Cohen, Jennefer Sebstad |
| India Focus Notes (IFNs) MicroInsurance Papers MicroInsurance Centre Briefing Notes (MICBNs)
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