Seminar on Risk Protection Mechanisms for SMEs to Strengthen Inclusive Insurance in Mongolia

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The insurance industry in Mongolia is currently small and still in its development stage. The share of the insurance industry is 0.7% of the whole financial sector. Despite the growth of the insurance sector and recent global awareness on financial inclusion, the insurance market in Mongolia can hardly be considered inclusive at this time. Small companies generate around 20% of Mongolia’s GDP and provide employment of 70% of the national workforce. There are challenges in insurance sector such as the lack of effective distribution channels to reach SMEs.

Focus Group Discussion to Determine the Risks Faced in ger Areas in Mongolia and Provide Recommendations to Insurance Regulator and Companies

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As of 2008, 154,644 families had been living in Ulaanbaatar ger area. This number had reached to 197,094 by 2013. In terms of socioeconomic status, ger area families tend to be larger, less educated, younger and poorer than apartment area households. Life pattern and living environment of ger area bring particular risks. For that reason, risk protection is needed to ger area residents because of their financial vulnerability. It is important to make ger area residents understand the benefits of insurance to protect them.

 

Mongolia: Inclusive Insurance schemes by Ulaanbaatar City Insurance

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In Mongolia children between 0 and 18 years old represent 34% of the population. According to estimates, 4% of these children suffer from injuries and accidents annually accounting to approximately 40,000 accidents. With 53%, most of these accidents are falls and injuries, while 11% are traffic accidents, 9% animal bites, 8% burns and 6% cuts from sharp blade objects. These accidents represent a financial burden for the family.

Mongolia: Ger, House and Fence insurance scheme by Monre Insurance

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In Mongolia a large number of people, most of them from the low-income sector, lives still in traditional gers, a portable, round tent covered with skins or felt traditionally used as a dwelling. Gers, houses and surrounding fences in the ger districts are highly vulnerable to flood and fire risks. However, these low-income families do not have the financial means to cope with the severe flooding or fire events that threaten their livelihood. Without financial education, they struggle to have regular access to appropriate insurance products.

Managing agricultural risk at the country level:the case of index-based livestock insurance in Mongolia

This paper describes the index-based livestock insurance program in Mongolia designed in the context of a World Bank lending operation with Government of Mongolia and implemented on a pilot basis in 2005. This program involves a combination of self-insurance by herders, market-based insurance, and social insurance. Herders retain small losses, larger losses are transferred to the private insurance industry, and extreme or catastrophic losses are transferred to the government using a public safety net program.

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