Stakeholders in microinsurance

Nearly all microinsurance programmes involve multiple stakeholders, many of which fall into the following categories:

Donor and promoter

  •  Including private (domestic or multinational) donors and governments.
  •  These stakeholders support microinsurance markets through financial support, strategic guidance, technical support, and capacity-building.

Regulator and supervisor

  • Including insurance regulators and supervisors, as well as other relevant government bodies, such as financial sector regulators.
  • These stakeholders stipulate requirements for products and for the roles of insurers, delivery channels and others in providing those products.

Insurer

  • May be formal (licensed) or informal; formal insurers can often take one of several institutional forms, including public or private companies, cooperatives, and mutual.

Reinsurer

  • Provides insurance to the insurer, taking on a portion of the risk it bears.

Microinsurance intermediary

  • Including local and multinational agents, brokers and other institutions that play a role in linking insurers to delivery channels.
  • These stakeholders are often present in markets where delivery channels may not directly have the capacity or interest in actively participating in the operational aspects of insurance but do wish to offer these to their clients. Similarly, where insurers may not be interested or capable of working directly with delivery channels that reach low-income market but can provide the risk taking capacity.

Delivery channel

  • Including agents, brokers, or unlicensed entities or individuals.
  • These stakeholders often play a broad range of roles in microinsurance, from contributing to product development, to marketing and client education to enrollment, claims processing, and resolution of disputes.

Service provider

  • Provider of the insured service, for example health care provider or a funeral home.

Consumer

  • Includes the policyholder (client), other people covered by the microinsurance policy, and beneficiaries.

The roles of particular stakeholders vary greatly according to the context, type of product, and model of provision.

MFIs and other lenders who serve low-income populations are very often involved in microinsurance programmes in some capacity, and hold a unique position due to their broad networks and strong existing access to low-income clients through the other financial services they provide. 

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Text based on Dossier thématique Micro-assurance ©2007,www.microfinancegateway.org