Munich Re Foundation
From Knowledge to Action
Protecting the poor

Protecting the poor

A microinsurance compendium - Volume I

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    This is a co-publication with the International Labour Organization (ILO), Geneva, Switzerland.

    This authoritative compendium brings together the latest thinking of leading academics, actuaries, and insurance and development professionals in the microinsurance field. The result is a practical, wide-ranging resource which provides the most thorough overview of the subject to date.

    The book allows readers to benefit from the valuable lessons learned from a project launched by the Microinsurance Network analysing operations around the world. Essential reading for insurance professionals, practitioners and anyone involved with offering insurance to low-income persons, this volume covers the many aspects of microinsurance in detail including product design, marketing, premium collection and governance.

    It also discusses the various institutional arrangements available for delivery such as the community-based approach, insurance companies owned by networks of savings and credit cooperatives and microfinance institutions. The roles of key stakeholders are also explored and the book offers insightful strategies for achieving the right balance between coverage, costs and price.

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    		Contents

     

    - Acknowledgements
    - Table of Acronyms
    - Introduction

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    Part 1

    Principles and practices

     

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    1.1

    What is insurance for the poor?
    (Craig Churchill)
    - Defining microinsurance
    - The two faces of microinsurance
    - What a difference three words make

    1.2

    The demand for microinsurance
    (Monique Cohen and Jennefer Sebstad)
    - Managing risk
    - The importance of understanding the demand for microinsurance
    - Current coping strategies: Strengths and weaknesses
    - Opportunities for microinsurance
    - Conclusion

    1.3

    The social protection perspective on microinsurance
    (Christian Jacquier, Gabriele Ramm, Philippe Marcadent and Valérie Schmitt-Diabate)
    - Introduction
    - What is social security? What is social protection?
    - What is microinsurance
    - Potential and limitation of microinsurance as a social protection mechanism
    - How can microinsurance be used to extend social protection?
    - Conclusion

    Part 2

    Microinsurance products and services

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    2.1

    Challenges and strategies to extend health insurance to the poor
    (Ralf Radermacher, Iddo Dror and Gerry Noble)
    - Product manufacturing
     -Product sales
    - Product servicing
    - Maintenance of long-term stability
    - Conclusion

    2.2

    Long-term savings and insurance
    (James Roth, Denis Garand and Stuart Rutherford)
    - Providing savings to the poor
    - Long-term savings and insurance products for the poor
    - Key issues in offering long-term savings and insurance
    - Conclusions

    2.3

    Savings- and credit-linked insurance
    (Sven Enarsson, Kjell Wirén and Gloria Almeyda)
    - Loan-linked products
    - Savings-linked insurance
    - Product design and delivery issues
    - Conclusions

    2.4

    Meeting the special needs of women and children
    (Mosleh Ahmed and Gabriele Ramm)
    - Special risks affecting women and children (girls and boys)
    - Microinsurance to address the special needs of women and children
    - Policy tasks to improve the strategic situation of women and children
    - Conclusions

    Part 3

    Microinsurance operations

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    3.1

    Product design and insurance risk management
    (John Wipf, Dominic Liber and Craig Churchill)
    - Market research
    - Eligibility
    - Terms and payment options
    - Benefits
    - Risk management and claims controls
    - Conclusions

    3.2

    Marketing microinsurance
    (Craig Churchill and Monique Cohen)
    - Main marketing messages
    - Marketing techniques
    - After-sales service
    - Marketing and mandatory insurance
    - Conclusion

    3.3

    Premium collection: Minimizing transaction costs and maximizing customer service
    (Michael J. McCord, Grzegorz Buczkowski and Priyanka Saksena)
    - Modes of premium collection
    - Collection frequency and timing
    - Client considerations
    - Premium collection controls
    - Conclusion

    3.4

    Claims processing
    (Michael J. McCord and Richard Leftley)
    - Introduction
    - Claims notification
    - Settlement
    - Controls
    - Claims considerations in product design
    - Conclusions

    3.5

    Pricing microinsurance products
         (John Wipf and Denis Garand)
    - Database design requirements for pricing
    (and sound microinsurance management)
    - Pricing components, key factors and methodology
    - Modelling techniques
    - Conclusions

    3.6

    Risk and financial management
         (Denis Garand and John Wipf)
    - The risks inherent in insurance products
    - Capital requirements
    - Reserves
    - Reinsurance
    - Investment management
    - Profit distribution
    - Conclusion

    3.7

    Organization development in microinsurance
    (Craig Churchill and Richard Leftley)
    - Organizational structure: Where does microinsurance fit in?
    - Recruitment: Where to access appropriate expertise
    - Training
    - Compensation
    - Institutional culture
    - Conclusions

    3.8

    Governance
    (Zahid Qureshi)
    - Governance in microinsurance
    - Board composition and expertise
    - The foundation stone
    - Microinsurance governance in practice
    - Conclusions

    3.9

    Loss control
    (Zahid Qureshi and Gerry Noble)
    - A retrospective look at loss prevention
    - Converging interests
    - Pinpointing prevention
    - Practising prevention
    - Minimization: A stitch in time
    - Evaluating the return on investment in prevention
    - Conclusions

    3.10

    Performance indicators and benchmarking
    (Denis Garand and John Wipf)
    - Marketing and distribution
    - Financial management and viability
    - Efficiency and client value
    - Investment management
    - Conclusions

    Part 4

    Institutional options

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    4.1

    Cooperatives and insurance: The mutual advantage
    (Klaus Fischer and Zahid Qureshi)
    - Introduction
    - What is a mutual insurer?
    - The cooperative difference
    - Insurance development models and stages
    - Insurance products offered under the cooperative network model
    - Why mutuals develop networks and how they work
    - Advantages and disadvantages of the model
    - Conclusion

    4.2

    The partner-agent model: Challenges and opportunities
    (Michael J. McCord)
    - Why a partner-agent model?
    - How the partner-agent model works
    - The good and the bad
    - Advantages and disadvantages
    - Conclusions

    4.3

    The community-based model: Mutual health organizations in Africa
    (Bénédicte Fonteneau and Bruno Galland)
    - What is a community-based model?
    - Why was/is this approach implemented in West Africa?
    - What is the target group of the community-based model?
    - Do MHOs function (well) and make a significant impact?
    - What are the origins of the problems?
    - What is the added value of this model?
    - Conclusion

    4.4

    Institutional options for delivering health microinsurance
    (Ralf Radermacher and Iddo Dror)
    - Institutional options
    - Value, interests and conflicts in the insurance business process
    - Conclusion

    4.5

    Beyond MFIs and community-based models: Institutional alternatives
    (Richard Leftley and James Roth)
    - Risk-carrying alternatives
    - Administrative alternatives
    - Distribution alternatives
    - Conclusions

    4.6

    Retailers as microinsurance distribution channels
    (James Roth and Doubell Chamberlain)
    - Why retailers? Which retailers?
    - Microinsurance distribution/Product combinations for retailers
    - Conclusions

    4.7

    Microinsurance: Opportunities and pitfalls for microfinance institutions
    (Craig Churchill and James Roth)
    - Institutional arrangements
    - The type of insurance
    - Conclusions

    Part 5

    The role of other stakeholders

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    5.1

    The role of donors
    (Alexia Latortue)
    - An analytical framework
    - Donor requirements to effectively support microinsurance
    - Types of donor support for microinsurance
    - Conclusion

    5.2

    An enabling regulatory environment for microinsurance
    (Martina Wiedmaier-Pfister and Arup Chatterjee)
    - Background
    - Barriers in existing regulatory frameworks
    - Country experiences – preliminary insights
    - Conclusions

    5.3

    The promotional role of governments
         (Sabine Trommershäuser, Roland Lindenthal and Rüdiger Krech)
    - Policy-making, participation and consensus-building
    - Creating an enabling environment
    - Strengthening institutions
    - Providing financial assistance
    - Concluding remarks

    5.4

    The role of insurers and reinsurers in supporting insurance for the poor
    (David M. Dror and Thomas Wiechers)
    - The value proposition of reinsurance
    - Involvement of commercial insurers and reinsurers in microinsurance
    - What part of this value proposition can insurers and reinsurers deliver?
    - Recommendations
    - Conclusion

    5.5

    The provision of technical assistance
    (Richard Leftley and Richard Lacasse)
    - Why is technical assistance required?
    - What does a TA provider do?
    - Who provides microinsurance technical assistance?
    - Conclusion: Providing quality technical assistance

    Part 6

    Conclusions

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    6.1

    Strategies for sustainability
    (Craig Churchill and Denis Garand)
    - Limit benefits
    - Focus on efficiency
    - Diversify income sources
    - Good management

    6.2

    The future of microinsurance
    (Felipe Botero, Craig Churchill, Michael J. McCord and Zahid Qureshi)
    - Microinsurance customers of the future
    - Microinsurance providers of the future
    - The regulatory landscape
    - The environment for microinsurance
    - Embracing the future

     Appendices

    - Appendix I: Description of microinsurance providers
    - Appendix II: About the authors
    - Bibliography
    - Index

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