From 21 to 23 November 2006, the 2nd International Microinsurance Conference took place in Cape Town, South Africa. The Conference was jointly hosted by CGAP [Consultative Group to Assist the Poor] Working Group on Microinsurance and the Munich Re Foundation with the support of Finmark Trust. This event was a follow-up to the Microinsurance Conference 2005 that took place in Germany in October 2005.
Around 150 experts from international organisations, non-government organisations, development-aid organisations and the insurance industry exchanged experiences and discussed the challenges of insuring people with low incomes.
The challenges of providing insurance for the low-income market are many. The need is great, but insurance has so far been accessible only to a small number of people. Premium income is low, and administration costs money – these are the main reasons why commercial insurers have little interest in this market. The number of people affected is high, and it is particularly the people from developing countries who are exposed to extreme natural perils.