Tag Archives: microinsurance

Investigating inclusive insurance demand in Ethiopia

One important barrier to insurance markets that are more inclusive is the necessity to better understand the needs of low-income and other unserved and underserved populations. This study provides data and information regarding critical inputs to key microinsurance product development opportunities and requirements in Ethiopia. By examining the risks that low-income people face, how they manage them, and identifying gaps, the market can gain valuable inputs into product design, including benefits to offer, better distribution approaches, and marketing and communications strategies.

The authors of the study are MicroInsurance Centre’s Katie Biese and Michael J. McCord, World Bank Group’s Craig Thorburn, EA Consultants’ Katherine Baez (EA Consultants), and Eamon Kelly.

MicroInsurance Centre to join Milliman

Milliman has announced that the firm has been joined by the MicroInsurance Centre (MIC), the internationally recognized consulting firm and microinsurance thought leader dedicated to generating access to valuable microinsurance products to 3 billion low-income people across the globe. Both firms share the common goal of working to protect the health and financial well-being of people everywhere. The transaction amplifies and accelerates the MIC’s progress towards its goals while significantly expanding Milliman’s capabilities in microinsurance. Together, these companies provide unmatched breadth and depth in capacity for clients working in emerging markets to start or enhance their insurance offerings in the low-income market segments.

“The MicroInsurance Centre is a remarkable organization with a deep commitment to building sustainable microinsurance products for populations in need,” says Milliman CEO Steve White. “The MIC’s pedigree of deep expertise, its independence, and its ability to deliver research and education around microinsurance pair perfectly with Milliman’s values and global footprint. We look forward to working with the MIC in support of its bold vision.”

“Milliman is a perfect fit for us given its mission, skills, and great reputation. Milliman’s interest in helping its clients expand throughout the emerging markets, where the bulk of insurance growth will arise, was an obvious fit as we looked to expand our vision of keeping people from sliding back into poverty,” says MIC president Michael J. McCord. “The synergy arises from Milliman’s global reach and commitment to the health and financial well-being of people everywhere, coupled with the MIC’s experience in providing value to low-income clients and business cases for insurers in over 75 countries.”

For more information, click here.

At the vanguard of microinsurance

In a new article, TheActuary.com interviews several actuaries who are pioneering specialties in their profession. Lisa Morgan spoke with the publication about microinsurance. Here is an excerpt from the interview:

How did you come to work in microinsurance?
In 2008, the Microinsurance Innovation Facility of the ILO approached Milliman to ask whether we would be interested in collaborating on microinsurance projects. I jumped at the opportunity and, four years later, I have been involved in a number of projects in South Africa, Swaziland, India, Vietnam and China

What are the main opportunities/challenges?
Microinsurance is still relatively new. There is a huge opportunity for actuaries to get involved and add immense value. Actuarial skills are scarce in many parts of the developing world, yet there is a great need for a more scientific approach to microinsurance issues.

The main challenge is that our advice is considered to be very expensive. This may act as a barrier for those wanting to work in the sector full time, as well as for microinsurers wanting to employ actuaries.

How do you see the sector developing?
There is a massive push by governments, NGOs, insurance regulatory bodies, the Access to Insurance Initiative and the ILO to grow the microinsurance sector. It is developing at a breath-taking pace – worldwide, it is estimated that 500 million risks were covered in 2011, a significant leap from just 78 million in 2006. Even so, in many countries only a small percentage (less than 5%) of the poor are reached by microinsurance or other forms of social security. I think the momentum of development will continue.

To read the entire article, click here.

The video below also showcases Morgan discussing a microinsurance assignment in Vietnam.