Luxembourg, 11 January 2011 – Since its official launch in 2009, the Microinsurance Network has grown significantly and currently has over 60 institutional members. This growth has coincided with the rapid development of the sector, which according to the latest Swiss Re Sigma study is due to the “increasing microfinance penetration, the active involvement of government in certain markets and need-based product offerings”(1). This in turn has significantly raised the profile of microinsurance in the world’s media.
With representatives from most international organisations active in microinsurance, the Network provides a platform for information sharing and stakeholder coordination with the aim to promote the development and proliferation of insurance products for low-income households. While the Network provides the means, its members are the driving force of the activities and their commitment to working together demonstrates that offering good-value insurance products to low-income households remains the focus of this growing sector.
2010 IN REVIEW
The 6TH INTERNATIONAL MICROINSURANCE CONFERENCE in Manila was a great success with over 500 participants from about 50 countries attending. Organised in collaboration with Munich Re Foundation, the conference introduced critical thinking and well balanced discussions from a mix of practitioners, academics, and industry leaders on specific topics. Representatives from over 15 national regulatory insurance bodies participated in the conference, thus confirming the increasing commitment of insurance commissioners to develop guidelines for microinsurance regulation. The 2011 conference will be held in Río de Janeiro, Brazil.
Another key event for the Network was the JUNE MEMBER MEETING in Germany. The meeting was attended by over 35 members from 23 organisations and provided another opportunity for members and Working Groups to work on the current challenges and issues that the sector faces. In 2010, some of the issues that need to be addressed to promote good-value microinsurance were:
CONSUMER PROTECTION
To acknowledge the importance of consumer protection in microinsurance, a task force was established to map the current issues within consumer protection, synthesise the challenges, and identify approaches for putting the key principles into practice.
TECHNOLOGY
Technology has been identified as one of the major element the development of microinsurance as it facilitates management processes and plays a vital role in distribution. 2010 saw the launch of the MICROINSURANCE TECHNOLOGY INVENTORY, an online database developed by the Technology Working Group to provide an overview of technologies that can be used for the administration of microinsurance products.
SOCIAL PERFORMANCE
Given the increasing need for providers to be socially responsible, especially with the micro-credit crisis in India, social performance in microinsurance is a pressing issue. The Performance Indicators Working Group organised a workshop with practitioners from Africa, Asia and Latin America to identify key social performance indicators for microinsurance. Eleven indicators were identified and are published in a workshop report, which is available on the Network website.
WWW.MICROINSURANCENETWORK.ORG
The Network’s website continued to grow throughout 2010, not only in the number of visitors but also in content. The website averaged 750 visitors a day and had over 50,000 documents downloaded from it in 2010. Mini websites in French and Spanish were developed and a calendar specifically for microinsurance events, trainings and seminars was added. The website will continue to be developed in 2011 with additional features to meet the needs of users.
PARTNERS OF THE NETWORK
In addition to maintaining a close working relationship with its partner organisations (International Labour Organization (ILO), Appui au Développement Autonome (ADA) and Munich Re Foundation), the Network continues to work closely with the International Association of Insurance Supervisors (IAIS) to support the Access to Insurance Initiative, an organisation that emerged through the Network’s joint working group with the IAIS and aims to strengthen the capacity and understanding of insurance supervisors, regulators and policymakers.
THE YEAR AHEAD
In 2011 the Network will be guided by the Executive Committee members Michael J. McCord (MicroInsurance Centre), Maria Victoria Saenz-Samper (Inter-American Development Bank), Brigitte Klein (GTZ), Dirk Reinhard (Munich Re Foundation), Alexia Latortue (CGAP), Brandon Mathews (Zurich Financial Services) and Craig Churchill (ILO’s Microinsurance Innovation Facility), who also serves as chair of the Network.
With the support of the newly elected Executive Committee, the Network will continue to contribute to the development of good-value microinsurance by encouraging its members to exchange knowledge and lessons learnt. “The Network is in a period of expansion and development, which is mirrored by what is going on in the sector. The challenges for the Network over the next year will be to integrate the increasing number of new members, while continuing to support the Working Groups so they can focus on the crucial issues in microinsurance,” said Craig Churchill.
ABOUT THE MICROINSURANCE NETWORK
The Microinsurance Network, which is hosted by ADA asbl and based in Luxembourg, is a network of donor organisations, multilateral agencies, insurance and social protection providers, policymakers and academics, all of whom are involved in microinsurance. Its mission is to promote the development and proliferation of good-value insurance products for people on low-income by providing a platform for information sharing and stakeholder coordination.
(1) Kaira, A., Microinsurance – risk protection for 4 billion people, Swiss Re, Sigma No 6/2010
ADDITIONAL INFORMATION:
Microinsurance Network c/o ADA asbl
2, rue St Zithe
L-2763 Luxembourg
Tel: +352 45 68 68 23
Fax: +352 45 68 68 68
Web : www.microinsurancenetwork.org
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