MICRO-INSURANCE

Problem

In Latin America and the Caribbean there is a potential market of 400 million people, of which only about 45 million have access to micro-insurance. A majority of these have life insurance, while very few have health, property or agricultural insurance. This means that there is a significant gap in both product development and supply of new products such as health, agriculture, and property micro-insurance.

Objective:

The MIF aims to increase the number of providers that offer, in a sustainable manner, micro-insurance products tailored for low-income populations in the region.

MIF Solutions:

  • Agricultural parametric insurance products, targeting small producers.
  • Catastrophic micro-insurance vehicles that help with climate change adaptation.
  • Health insurance products tailor-made for low-income populations.
  • Insurance for micro-entrepreneurs to protect their assets and working tools against theft, flooding, etc.,
  • Long- term voluntary life insurance policies targeting low-income households.

Results and Impact:

  • A large increase in the numbers of people with affordable and sustainable risk management tools, such as micro-insurance and targeted savings;
  • Introduction of new distribution channels (kiosks, etc);
  • A number of countries with regulatory roadmaps for micro-insurance and favorable environments for the development of micro-insurance;
  • A considerable number of people in the region trained in risk management and insurance products;
  • A sustainable micro-insurance market as a result of new distribution channels and partnerships among insurance companies;
  • Poor and low-income households with decreased vulnerability to risks (climate, health, crime, etc), as a result of increased uptake of micro-insurance products.

 

Microinsurance in Latin
America and the Caribbean

 

Enabling the Poor in Latin American to Plan for the Future through Greater Access to Microinsurance.

 Download the infographic

Enhancing Microinsurance Knowledge from Latin American Practice

The partnership between the Multilateral Investment Fund and the Microinsurance Innovation Facility looks to consolidate the existing knowledge in microinsurance by extracting, analyzing, and effectively disseminating in a variety of formats the lessons from microinsurance projects funded by both organizations in Latin America and the Caribbean.

Purpose: Learn from the different microinsurance programs being implemented in order to replicate successes and innovations across the region.

Activities:

  • Transferal of knowledge on lessons extraction from microinsurance projects in the region
  • Analysis and cross-fertilization of lessons for improved action in the region
  • Joint knowledge products, events and other activities for dissemination of lessons in the region

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The Microinsurance Innovation Facility, housed at the International Labour Office, pushes the frontiers of microinsurance by generating valuable new knowledge. Since 2008, it has provided innovation, research and capacity building grants which are catalysts for experimenting and learning with organizations across Africa, Asia and Latin America. With its partners, the Facility forms a critical knowledge hub, extracting lessons from pioneers, and sharing their successes and challenges with all interested parties.