Insuring the Uninsurable for Poverty Alleviation in Nigeria: What Microinsurance can do?
Mukhtar; Shuaibu, Vol. 4, No. 2, Mediterranean Journal of Social Sciences, May 2013
In Nigeria there is low insurance patronage and the vast majority of citizens are exposed to various types of risks. The resulting effects are poverty, economic insecurity, insurgency, and social vices. Micro-insurance is considered as one of the most effective means of reducing the vulnerability of the poor from the impacts of disease, theft, violence, disability, fire and other hazards.
Micro-insurance can break the cycle of poverty in Nigeria by providing low-income households, business and farmers with access to post disaster liquidity, thus protecting their livelihoods and providing for reconstruction. Therefore, insured households and firms are more credit worthy; these kinds of insurances can also promote investments in productive assets and higher risk yield crops.
The study recommends the establishment of micro-insurance in Nigeria, whilst ensuring that this is done in accordance with the social, cultural and religious settings of the local people, so it can gain recognition and acceptance.
Read the study here.
MILK Brief n° 20: ‘Doing the Math’: Loan Protection Insurance in Cambodia
Budzyna; Laura, Taara Chandani, MILK BRief n°20, MicroInsurance Centre
Can credit life microinsurance provide value to clients? In its 20th Client Math study, MicroInsurance Centre’s Microinsurance Learning and Knowledge (MILK) partnered with the Cambodian microinsurance provider MEADA to explore the value of a life microinsurance product that combines loan protection with a small cash payout in the even of a microcredit borrower's death. The authors interviewed family members of recently-deceased individual, some of whom were covered by insurance and some of whom were not, to better understand the costs they faced and how they covered those costs (including the role the insurance played).
In 2007, the Cambodian Health Committee, the foundation organization of the microfinance institution SAMIC (Samaki Microheranvatho, or Microfinance of Solidarity) created Measure for Economic and Accelerated Development for All (MEADA). MEADA is a microinsurance provider offering life and credit life microinsurance products in twenty districts of Cambodia . “MEADA” means “Mother” in Khmer, capturing the program’s objective of nurturing and protecting low-income Cambodian families in the event of unexpected losses resulting from the death of a borrower.
Click here to download the document.
Can Microinsurance Help Prevent Child Labor? An Impact Evaluation from Pakistan
Landmann; Andreas, Markus Froelich, Discussion Paper n° 7337, Institute for the Study of Labor (IZA), April 2013
Poor households in developing countries, such as Pakistan, are especially vulnerable to economic shocks. They often have limited access to savings, credit and tangible assets. As a consequence, households might have to sell productive assets important for long-term income generation, and/or reduce consumption.
This paper, published by the Institute of the Study of Labor (IZA), provides evidence on the effects of insurance on child labour. The authors exploit the extension of an accident and health insurance scheme offered by the National Rural Support Program (NRSP), a large MFI in Pakistan, which was set up as a randomized control trial and accompanied by household panel surveys. Together with increased coverage, the MFI offered assistance with claim procedures in treatment branches.
The article concludes that insurance coverage leads to higher perceived protection and makes parents more confident to leave children out of work and instead allows them to visit school more regularly.
To download the paper click here.
Why people do not buy microinsurance and what can we do about it
Matul; Michal, Aparna Dalal, Ombeline De Bock, Wouler Gelade, Paper n° 20, Microinsurance Innovation Facility, February 2013
Vulnerability to risk, a constant factor in the lives of the poor, is a cause of persistent poverty. Microinsurance offers one approach to mitigating risk, yet demand is disappointingly low. This low demand for microinsurance is a complex issue, as many factors influence a household’s decision to buy microinsurance.
This paper, published by the ILO's Microinsurance Innovation Facility offers a review of more than 30 quantitative and qualitative studies that reveal the most important determinants of demand when it comes to selling microinsurance: trust, liquidity constraints, the quality of the client value proposition and behavioural constraints.
Conducted as a partnership between ILO’s Microinsurance Facility and the European Development Research Network (EUDN), the paper aims to help practitioners understand how these determinants affect demand. By blending academic findings with practical examples from the field, it presents solutions that practitioners can implement to improve demand.
To view the paper click here.
'Access to Health Insurance' conference report
The ‘Access to Health Insurance’ conference, held in the Netherlands in June 2012, focussed on improving access to and quality of health services, and providing a viable and inclusive health insurance system. The conference report and list of videos with testimonials from key conference speakers is now available for download.
The conference, which was attended by the then Princess (now Queen) Máxima of the Netherlands, included speakers from the World Bank, ILO, IFC, large telecommunication companies such as Vodafone, the Hygeia group and health insurance initiatives from Europe, Asia, and Africa.
The conference stimulated lively debates about the do's and dont's of health insurance schemes, the prerequisites in low and middle income countries, the knowledge gaps and the political agendas necessary to advance access to health and health financing worldwide. Key conclusions included:
- More interdisciplinary research is needed about financial access to health and the role of insurance
- Practitioners and researchers should meet more regularly to exchange experiences
- Best practices should be more systematically communicated and lessons should be drawn
- There is no one size fits all: context is vital and conditionalities are important
- Besides focusing on demand, one should not forget supply-side improvements.
Download the final report (including the programme)
Download the document with testimonial videos
An Instrument for Social Protection and Climate Change Adaptation?
Goldboom; Tabea, Working Paper, United Nations Research Institute for Social Development (UNRISD), April 2013
In the last few years, the first microinsurance schemes for low-income peasants have been introduced in Bolivia, allowing parts of the rural population to insure crops like maize, potatoes or grapes.
In Bolivia, as in other countries, a large range of actors participates in the promotion of microinsurance, including non-governmental organizations (NGOs), insurance and reinsurance firms, bilateral and multilateral public donors, and private donors. These actors see agricultural microinsurance and insurance as a mechanism that helps to deal with the implications of climate change and improves the social protection of the rural population, among other objectives.
This paper, published by the United Nations Research Institute for Social Development (UNRISD), explores the politics that are part of the creation and implementation of two agricultural microinsurance schemes in Tarija, a department in the south of Bolivia. It looks at the unfolding negotiations and contestations among public and private actors that participate in the creation and implementation process. These actors have diverging interests, norms and resources, and their relationships are marked by asymmetric power relations. Thus, current microinsurance practices produce contradictions that partly limit the feasibility of the microinsurance mechanism with regard to social protection and climate change adaptation.
To view the document click here