ILO’s Insurance for Development training 2023:
Putting knowledge into action!

I work at Zamara Rwanda as Chief Executive Officer and my main responsibilities are to:

• Ensure that the company is well run and meets the profit targets set by the Board for the benefit of the shareholders.
• Ensure Zamara grows to a respected brand in the Rwandan insurance market.
• Lead and grow Zamara Actuaries, Administrators & Insurance Brokers Limited to be market leader in insurance broking in Rwanda.
• Initiate innovative products 

Having worked with women in cross-border trade, I learnt that there are a lot of challenges with multi-tasking mothers who ensure that there is everything at home, drawing on all their savings and continuously struggling to get capital and sustain their families. Later, when I joined the insurance sector, I found the reasons to learn and understand their problems more and create solutions for them. This led me to my microinsurance journey of venturing into research to understand microinsurance and pension solutions to address the needs of unserved communities, which I thought and still think would address the needs for this vulnerable community while increasing business opportunities and increasing the insurance penetration of about of 2% in Rwanda.  Eagerly, I started listening keenly to microinsurance experts cross the globe, reading materials on the same and thinking about how I can become a game changer/champion by making an impact on improving the welfare of the unserved, especially the women in cross-border trade. I then embarked on attending both face-to-face and online training to acquire the skills needed to craft the financial solutions that would make an impact on their lives and their self-reliance. In July 2023, I attended a microinsurance Master Programme held in Nairobi, Kenya – webinars organised by FSD Africa on sustainable insurance and recently one on insurance for development organised by the Impact Insurance Academy in collaboration with ILO international training centre. 

Microinsurance is a new concept, and many have conceptualised differently from different perspectives. Being fresh in people’s minds, both demand and supplier sides are exposed to many challenges, such as:

• Lack of awareness: Many people are not familiar with this kind of insurance product, how it can be delivered and its appropriateness.
• Immature legal framework. In some jurisdictions, there is no published law that provides guidance on how microinsurance is done and how players should execute this insurance segment.
• Under capitalisation, some insurance general practitioners/insurers don’t want to invest in microinsurance, as it requires huge capital which takes a long time to bring returns – about 4 years, and we have examples to confirm this.
• Shortage of the required skills
• Lack of trust

We must do the following to tackle the above challenges:

• Create awareness among emerging market clients!
• Conduct market surveys.
• Training for all the stakeholders involved in inclusive insurance.
• Create microinsurance funds which could facilitate the implementation of initiatives to promote inclusive insurance.

There are several learnings from the training conducted at different trainings, especially from the insurance for development administered by the Impact Insurance Academy.

• At the end of training, it is understood that microinsurance is not doing business as usual – it requires a lot of patience since it is capital-intensive, and it takes a long time to bring returns on investment. It is also customer-centric in that the supplier side must understand the demand side to be able to align needs with created solutions that respond appropriately to the needs and requirements of the customers. Hence, product development starts with the end-user (the customer) and ends with the suppliers. 
• Again, microinsurance/inclusive insurance/emerging markets have attracted various stakeholders who have expressed interest in joining other players to be part of the microinsurance development journey. These include insurers, reinsurers, development partners, consulting firms, distribution channels, actuaries and governments.
•  Having attended this training, it was clear that microinsurance brings several business opportunities which had not been seen by practitioners in the market.

I am the Head of Inclusive Insurance at Financial Sector Deepening Zambia (FSD Zambia). FSD Zambia works closely with key players throughout the economy to ensure that all Zambians are financially healthy, particularly the most excluded and underserved. We help rural families, women, youth, low-income people and other households in Zambia to understand and access a wide range of sustainable, comparable and affordable financial services. To expand financial inclusion, we collaborate with both public and private sector institutions to make financial markets work better in Zambia. 

I am currently managing two projects in Zambia whose main objective is to strengthen the resilience of smallholder farmers through access to affordable and appropriate insurance products. I attended the academy to learn more from other experts and peers on how to successfully implement similar inclusive insurance projects. I also wanted to learn the key success factors of delivering inclusive insurance products to the unserved and underserved.

Low-income individuals and households lack the financial resources to bounce back after unforeseen events. Inclusive insurance plays a critical role in strengthening the resilience of the unserved and underserved segments of the population. However, the following challenges still need to be overcome to unlock the demand for inclusive insurance products:

1. Lack of awareness
According to the FINSCOPE Survey report of 2020, 40.9% of the Zambian adult population have not heard of insurance and how it works. There is a need to increase insurance awareness among the adult population in Zambia to stimulate demand.

2. Business Case
On the supply side of the market, only a handful of insurance companies on the market are providing microinsurance products to the low-income segment. This is mainly attributed to scepticism among insurers that microinsurance is unprofitable arising from the high cost of reaching the targeted market. Many insurers have overcome this by leveraging technology to reduce the cost of distribution. Digital platforms have been developed by insuretechs to facilitate the distribution of microinsurance products at very minimal cost. Furthermore, insurers also need to establish viable partnerships with distribution partners that are already aggregating potential clients. These include cooperatives, Associations, VSLAs and unions, among many others.

3. High cost of premiums
The increasing cost of living has hurt the uptake of insurance products. Most vulnerable households cannot afford premiums. Subsidies would go a long way in assisting low-income households to enjoy the benefits of insurance, especially considering the increasing effects of climate change. 

The Impact Insurance Academy for 2023 was replete with many lessons for me: Firstly, bundling of microinsurance products with other services and products such as credit and agricultural inputs facilitates increased uptake. Secondly, the academy accorded me the opportunity to get an in-depth understanding of Key Performance Indicators (KPIs) and how to use them to assess the performance of insurance partners and individual products. This is key for a market facilitator when it comes to the selection of reliable insurer partners to work with in rolling out microinsurance products on the market. Finally, the role of government in the growth of inclusive insurance in the country cannot be overemphasised. The government plays a critical role in ensuring that the environment is conducive for both insurers and the insureds through favourable legislation. Not only that, but also the government plays a critical role in the distribution of microinsurance products in the country by incorporating insurance products in government schemes for vulnerable groups such as the Farmer Input Support Programme (FISP) in Zambia. 

I head the microinsurance unit and am responsible for overseeing microinsurance operations.

I have been involved in drafting regulations, policies and guidelines specific to microinsurance. I also ensure that the guidelines and policies are aligned with the National Financial Inclusion Strategy. Other responsibilities include granting licences to entities wishing to operate as microinsurance providers, ensuring that microinsurance products are designed to meet the needs of the target market prior to approval, and approving Service Level Agreements. Furthermore, I am involved in the review of quarterly product-performance reports to assess the overall performance of the operators. I also provide training and capacity-building initiatives in order to promote awareness and understanding of microinsurance among the public and  microinsurance providers. I collaborate with other financial regulators and relevant entities.   

The insurance industry, including impact insurance, is dynamic and subject to continuous changes. I attended to stay informed about the latest trends, technologies, and innovations in the field. I attended to have an opportunity to network with experts, practitioners, and peers in order to foster collaboration, the exchange of best practices, and the development of a supportive community for inclusive insurance initiatives, in order to have a first-hand understanding of the unique challenges and needs of the vulnerable communities in other climes, and of the solutions offered to cater for such needs with a view to domesticating solutions where applicable. 

People in low-income communities may lack awareness and understanding of insurance concepts and the benefits of coverage. Efforts should be made to simplify insurance concepts, embarking on education campaigns and awareness, use of local languages, and engagement of community leaders to convey the importance of insurance. This is essential to solve trust issues associated with insurance, especially within the un- and underserved segments.

Affordability is a significant concern, and potential policyholders may perceive insurance as an additional financial burden. Designing affordable premium structures, bundling insurance with other financial products, and offering flexible payment options can make insurance more accessible.

Limited access to distribution channels in remote or underserved areas is a major challenge. Leveraging technology such as mobile phones, mobile money operators, and partnerships with local organisations, microfinancing banks, microfinancing institutions, trade associations, cooperatives, community-based organisations and other alternative distribution channels can expand distribution networks and also enhance outreach.

Inter-agency challenges between regulators of different sectors involved, like the Central Bank and the Nigerian Communications Commissions, remains a challenge. Collaborative efforts between relevant regulators, and a multi-stakeholder approach, are essential. 

As stated earlier, the insurance industry, including impact insurance, is not static and as such is  subject to continuous change. As you are well aware, impact insurance is often linked with Sustainable Development Goals and it deals with innovative approaches to managing risks associated with climate change, agriculture, health, and other sectors. I gained valuable knowledge that will contribute to the broader agenda of sustainable development. These learnings will aid us in aligning and improving our regulations with a view to integrating sustainability principles.

I’m the Executive President/CEO of the organisation. I’m responsible for the result and for implementing the strategy of the company.

I attended IIA to see other countries’ best practices and learn how to increase penetration in micro and inclusive insurance.

I think the main challenges are innovative products and distribution channels to get to more and more people, technology and digital processes, and cyber risks.

I learned a lot from different countries’ experiences and takeaways. We will continue to be focused and develop new distribution channels for micro and inclusive insurance.