JMM 2023: Nurturing Sustainable Development

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“Today we still face an enormous global protection gap estimated to be at US$1.4 trillion, that is why we are committed to working with the Microinsurance Network to close this gap and increase awareness about microinsurance products globally. “

H.E. Franz Fayot

Luxembourg Minister for Development Cooperation and Humanitarian Affairs

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The Microinsurance Network June Member Meeting (JMM) convened from 12-15 June, 2023 in Luxembourg, and saw a series of constructive and forward-thinking knowledge sharing sessions, interventions and keynotes from members and speakers from around the world.

The JMM has a particular objective to exchange points of view and foster collaboration between the global members. A unique and invaluable opportunity to share knowledge, best practice, and lessons learned from the successes - and failures - of implementing inclusive insurance projects around the world, this year’s JMM saw three key themes emerge: Measurement, Sustainability, and Technology.

Measurement: There was a consensus on the need for consistent and benchmark measurement of the impact of microinsurance. This includes gathering data on the direct customer experience and understanding the social impact of inclusive insurance projects. It was emphasised that research and direct engagement with end beneficiaries are crucial for meeting their demands, making products more relevant and addressing concerns. The importance of measuring the impact of systems aimed at engendering social change was also emphasised.
Sustainability: The transition from microinsurance to increased or full premium pricing as societies and economies become more resilient was discussed. Timely payment, especially speedy claims settlements, was recognised as critical for the overall impact of insurance. The meeting explored long-term, sustainable solutions in various sectors, such as sustainable insurance for MSMEs, building resilience for smallholder farmers, and improving health outcomes for non-communicable diseases.
Technology: Technology was emphasised as a key enabler for efficient scalability and as the tool for reaching last-mile customers, with the pace of change of technology and its penetration across levels of sustainable finance highlighted. Fintech and insurtech solutions, including payment wallets, digital payments, and blockchain-based distribution channels, were explored as key ways of connecting relevant inclusive insurance products with customers and ensuring speedy payments. Technology offers opportunities for proactive risk management and can provide insights into trends. Distribution, particularly through mobile money, was seen as a significant revenue driver for telcos, with adjacent financial services like microinsurance diversifying revenue streams.

The JMM underscored the importance of closing the global protection gap and increasing awareness of microinsurance products worldwide. Collaboration, sharing best practices, and forging partnerships were emphasised as crucial for achieving this goal.

Building social capital, focusing on people, leadership, and governance, and fostering mainstream collaboration were identified as essential approaches. Digitisation was seen as a means to reduce the cost of selling and servicing insurance, making microinsurance more commercially viable for vulnerable segments.

The exchange of ideas and knowledge between public and private stakeholders was recognised as valuable for learning important lessons and driving progress. Indeed, time and again speakers highlighted the important lessons they have learnt through exchange - exchange of ideas and knowledge between multiple stakeholders from across the public, private and development sectors.

Everyone has something to bring to the table.

As Mr. Lorenzo Chan, Chair of the Board, Microinsurance Network, told attendees at the JMM:

“The need for affordable, accessible and comprehensible insurance to minimise the setback and avoid the need to start all over again each time a calamity or death occurs, persists… We need to continue sharing best practices, collaborating, and forging partnerships with those who share the same goal in pursuit of a common vision.”