Microfinance institutions (MFIs) can be effective distribution channels for microinsurance. Seventy per cent of 450 MFIs reviewed in a survey provide insurance, of these nearly half offer some type of voluntary cover. The findings suggest that MFIs are evolving beyond basic credit life insurance. However, making the transition to more complex products and business models presents several challenges. This brief by the ILO’s Microinsurance Innovation Facility presents key recommendations for MFIs to improve their microinsurance offerings.