Tuesday, May 2, 2017
Luxembourg's Minister for Cooperation and Humanitarian Action, Romain Schneider, and Minister of Finance, Pierre Gramegna, signed a new agreement with the Microinsurance Network, outlining the financial support and commitment of the two Ministries towards the international platform dedicated to the development of inclusive insurance, for the 2017-2019 period.
The signing took place during the Ministers’ visit to Luxembourg's House of Microfinance which hosts several of the country’s key players active in inclusive finance, namely the NGO ADA (Appui au Développement Autonome), the European Microfinance Platform (e-MFP), the Luxembourg Network for Inclusive Finance (InFiNe.lu), the Luxembourg Microfinance and Development Fund (LMDF), and Microlux.
Minister Schneider highlighted that the Government of Luxembourg is convinced that microfinance has a key role to play in the fight against poverty and the attainment of the Sustainable Development Goals (SDGs). Luxembourg’s Government contributes to efforts in regulating the inclusive finance markets and supports a range of initiatives that aim to promote market transparency and client protection. Further, Luxembourg leverages the tools of microfinance and inclusive finance to contribute to environmental protection and promote the use of renewable energy.
Minister Gramegna explained that the collaboration amongst the different players of Luxembourg’s financial sector has led to the establishment of a remarkable wealth of capacity and expertise in the field of microfinance in the country. The Minister underlined the importance of innovation in product and service development in meeting the needs of clients in a changing market. To this end microfinance and Fintech start-ups have to join forces, helping to bring down costs, improve quality of services and increasing access.
Interim Executive Director of the Microinsurance Network, Henk van Oosterhout, explained that that the vision of the Network is universal access to effective insurance services. The Network considers that insurance services are an essential tool to enables unserved people to recover from, or adjust to day-to-day risks, including new risks due to climate change. Within this bigger “resilience” picture, the value proposition of insurance services is managing and reducing risks that other local measures cannot manage. One of the Network’s upcoming events is the June Member Meeting, which will for the first time take place in Luxembourg this coming June 27 and 28. The theme of the event is “The role of inclusive insurance in risk reduction: Mapping the roles of the insurance industry, development partners and governments in risk management and risk reduction for the poor.
The visit by the Ministers to Luxembourg’s House of Microfinance ended with the signing of three new agreements, namely with the Microinsurance Network (2017-2019), the e-MFP (2017-2021), and InFiNe.lu (2017-2019). The financial commitment laid out in these three conventions amounts to a total of 3,4 Million Euros.
Read the official press release (in French)