Security at little cost: Microinsurance in financial systems development


The new BMZ Position Paper on microinsurance deals with the challenges in establishing microinsurance in developing countries. It develops a strategy for German development cooperation for promoting microinsurance. The paper shows that access to market-based microinsurance makes a significant contribution to social security and hence to poverty reduction. Microinsurance has been set on the agenda in different contexts such as social security, adaptation to climate change and rural development. The demand for improving the sustainable access to financial services incl. insurance is increasing. Also policy makers put microinsurance on their agenda, like recently in Pittsburgh. The paper concludes that market-based microinsurance needs to be integrated sustainably in the local financial system to develop its full potential of the particular development agenda. Healthy market development and costumer protection are preconditions to ensure maximum outreach and the provision of good value for money products to the poor customer.






Martina Wiedmaier-Pfister, Brigitte Klein, Hendrik Denker

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Federal Ministry for Economic Cooperation and Development

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