Protecting the poor

Protecting the poor

A microinsurance compendium - Volume II

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    This second volume of Protecting the poor is a unique collection of recent practices and emerging ideas in microinsurance. It covers numerous innovations that have emerged in recent years to meet the challenges of providing insurance to low-income people, from new products and delivery channels to consumer education tools, while examining changes in regulations, providers and schemes. As the microinsurance community dramatically evolves and millions more low-income households have access to better insurance cover, this timely second volume will be an invaluable resource for policymakers, insurers, academics and NGOs.



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    - Acknowledgements
    - Table of Acronyms
    - Introduction

    (Craig Churchill and Dirk Reinhard)

    Part 1

    Emerging issues

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    Current trends in microinsurance
    (Craig Churchill and Michael J. McCord)
    1.1 The definition of microinsurance is becoming operational
    1.2 More low-income households are covered by insurance
    1.3 Stakeholders in microinsurance are becoming more diverse
    1.4 Providers are offering an expanding and varied range of products
    1.5 There is greater concern that insurance provides value to the insured
    1.6 Conclusion


    The potential of microinsurance for social protection
    (Yvonne Deblon and Markus Loewe)
    2.1 Scope and functions of social protection
    2.2 Social protection in developing countries
    2.3 Microinsurance as a social protection tool
    2.4 Conclusion: The need for a systematic approach


    What is the impact of microinsurance?
    (Ralf Radermacher, Heidi McGowan and Stefan Dercon)
    3.1 What is impact?
    3.2 The current literature
    3.3 Expected and observed impact of microinsurance
    3.4 Conclusion


    Microinsurance and climate change
    (Thomas Loster and Dirk Reinhard)
    4.1 The impact of climate change
    4.2 Microinsurance and weather events
    4.3 Operational challenges and solutions
    4.4 Role of key stakeholders
    4.5 Conclusion

    Part 2

    Health insurance

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    Innovations and barriers in health microinsurance
    (Sheila Leatherman, Lisa Jones Christensen and Jeanna Holtz)
    5.1 Evidence of the impact of health microinsurance
    5.2 Demand and supply challenges for health microinsurance
    5.3 Innovations and interventions for health microinsurance
    5.4 The way forward


    Third-party payment mechanisms in health microinsurance
    (Pascale LeRoy and Jeanna Holtz)
    6.1 Current TPP practices
    6.2 Establishing and managing a TPP mechanism
    6.3 Conclusions


    The elusive quest for estimates of willingness to pay for health microinsurance
    (David Dror and Ruth Koren)
    7.1 Methods of eliciting WTP
    7.2 Search of relevant WTP experiments
    7.3 Key findings
    7.4 Lessons learned and implications for practitioners

    Part 3

    Life insurance

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    Savings in microinsurance: Lessons from India
    (Rob Rusconi)
    8.1 Saving and insurance considerations
    8.2 Products considered
    8.3 Key lessons learned
    8.4 Concluding thoughts and way forward


    Improving credit life microinsurance
    (John Wipf, Eamon Kelly and Michael J. McCord)
    9.1 What is credit life insurance?
    9.2 Who benefits from credit life?
    9.3 Quantifying the value of credit life
    9.4 Existing expanded products
    9.5 Operational aspects
    9.6 Conclusions and recommendations


    Funeral insurance
    (Christine Hougaard and Doubell Chamberlain)
    10.1 Funeral cover matters
    10.2 Key characteristics of funeral cover
    10.3 Delivering value
    10.4 Conclusion

    Part 4

    General insurance

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    Designed for development impact:Next-generation index insurance for smallholder farmers
    (Michael R. Carter)
    11.1 Agricultural index insurance basics
    11.2 Designing contracts to minimize basis risk
    11.3 Interlinking insurance and credit
    11.4 Conclusion: Designed for development impact
    Appendix: Simulation analysis index insurance versus self-insurance


    Livestock insurance: Helping vulnerable livestock keepers manage their risk
    (Anupama Sharma and Andrew Mude)
    12.1 Why livestock insurance?
    12.2 Livestock insurance provision to the poor
    12.3 Difficulties in providing livestock insurance
    12.4 Catalysing the market: Innovations to make livestock insurance viable
    12.5 Conclusion

    Part 5

    Insurance and the low-income market

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    The psychology of microinsurance: Small changes can make a surprising difference
    (Aparna Dalal and Jonathan Morduch)
    13.1 Small changes can make a surprising difference
    13.2 Strategies
    13.3 Conclusion


    Emerging practices in consumer education on risk management and insurance
    (Iddo Dror, Aparna Dalal and Michal Matul)
    14.1 Content of consumer education
    14.2 Delivery of consumer education
    14.3 Sustainability and business model for consumer education
    14.4 Conclusion


    Improving client value: Insights from India, Kenya, and the Philippines
    (Michal Matul, Clémence Tatin-Jaleran and Eamon Kelly)
    15.1 Client value assessment framework and tool
    15.2 Value-creation opportunities
    15.3 Setting benchmarks: Informal mechanisms and social security schemes
    15.4 Relative value from products at the country level
    15.5 Conclusions


    Microinsurance that works for women
    (Anjali Banthia, Susan Johnson, Michael J. McCord and Brandon Mathews)
    16.1 Gender and risk in poor households
    16.2 Traditional risk management and coping strategies
    16.3 Gender-sensitive microinsurance
    16.4 Conclusion: A call to action


    Formalizing the informal insurance inherent in migration: Exploring potential links between migration, remittances and microinsurance
    (Jennifer Powers, Barbara Magnoni and Emily Zimmerman)
    17.1 Demand considerations for migration-linked insurance
    17.2 Framework: The 3Hs of migration-linked insurance
    17.3 Legal and regulatory challenges
    17.4 Operational opportunities and challenges to migration- and remittance-linked insurance
    17.5 Conclusion

    Part 6

    Insurers and microinsurance

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    Is microinsurance a profitable business for insurance companies?(Janice Angove and Nashelo Tande)
    18.1 Framework for the assessment of profitability
    18.2 Context and setting the scene
    18.3 Financial analysis and drivers of profitability
    18.4 Conclusions and recommendations


    Teaching elephants to dance: The experiences of commercial insurers in low-income markets
    (Janice Angove, Martin Herrndorf and Brandon Mathews)
    19.1 Involvement of commercial insurers in microinsurance
    19.2 Internal organization: Models for success
    19.3 External outreach: Building market relations
    19.4 Conclusion


    State and market synergies: Insights from India’s microinsurance success
    (Rupalee Ruchismita and Craig Churchill)
    20.1 Industry overview
    20.2 Products
    20.3 Distribution channels
    20.4 Conclusion: Catalysts of success


    Pricing of microinsurance products
    (Denis Garand, Clémence Tatin-Jaleran, Donna Swiderek and Mary Yang)
    21.1 The pricing cycle
    21.2 Gather and analyse data
    21.3 Setting assumptions
    21.4 Determining the premium
    21.5 Monitoring and evaluating product experience
    21.6 Refining the premium
    21.7 Summary example
    21.8 Conclusion

    Part 7

    Delivery channels and intermediaries

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    New frontiers in microinsurance distribution
    (Anja Smith, Herman Smit and Doubell Chamberlain)
    22.1 Rethinking distribution
    22.2 Comparing the distribution channels
    22.3 Emerging themes
    22.4 Moving forward


    Microinsurance intermediaries
    (Alex Bernhardt, Roland Steinmann and Michael J. McCord)
    23.1 Insurance intermediation: Conventional vs. micro
    23.2 Microinsurance-only intermediaries
    23.3 Traditional intermediaries with some microinsurance activities
    23.4 The value of microinsurance intermediation
    23.5 Conclusions

    Part 8

    Infrastructure and environment for microinsurance

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    The technology revolution in microinsurance
    (Anja Smith, Eric Gerelle, Michiel Berende and Grieve Chelwa)
    24.1 Benefits and risks of technology in microinsurance
    24.2 Client-interfacing technology
    24.3 Transaction processing
    24.4 Data analysis
    24.5 The promise of mobile phones
    24.6 Conclusion


    Access to insurance and financial-sector regulation
    (Arup Chatterjee)
    25.1 Financial inclusion and insurance
    25.2 Prudential role and developmental role – is there a trade-off?
    25.3 Regulatory interventions through enabling policy frameworks
    25.4 Treatment of MCCOs and informal providers
    25.5 Recognizing alternative distribution channels
    25.6 Access to insurance and consumer protection
    25.7 Conclusion


    Protecting consumers while promoting microinsurance
    (Rodney Lester and Katharine McKee)
    26.1 Microinsurance market characteristics relevant for consumer protection
    26.2 Towards a consumer protection framework for microinsurance
    26.3 Designing and implementing special consumer protection regimes for microinsurance
    26.4 Non-legislative and non-regulatory consumer protection
    26.5 Emerging good practices


    - Appendix: About the authors
    - Bibliography
    - Index

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