For 20 years the Microinsurance Network (MiN) has been driving inclusive insurance through its unique multi-stakeholder membership, strategic partnerships and with the generous support from the Government of Luxembourg. In this series of articles, we will explore the past, present and future aspirations of the MiN..
Insurance is often looked upon as a means of transferring and managing everyday risks. But it is much more than this. It is a support system that can protect families, livelihoods and whole communities; it is a means which ensures resilience and economic development. For this concept to work, however, access to insurance needs to be inclusive and for two-thirds of the world’s population, this simply isn’t the case.
It was this very protection gap that motivated a group of 16 representatives to establish a working group that would help bring insurance to everyone – especially vulnerable, low-income households and businesses in emerging markets, who need it most. Set up in 2002 as the Consultative Group to Assist the Poor (CGAP) Working Group on Microinsurance (CGAP WG MI), the focus was to coordinate research and documentation, share information and establish guidelines for best practices, in an attempt to help insurers deliver accessible and practical products to those in developing countries. But to do this, the group needed to take stock of then-existing resources to identify gaps, put itself in the field, to learn the priorities of these would-be consumers. It also needed input from both the insurance industry and donor community.
Within its first decade of operation, sub-groups covering ‘Operations and Donors‘, ‘Demand’, ‘Regulation’ and ‘Dissemination’ were set up to develop assessment tools, gain insight into insurance barriers, and to provide information and resources to donors, experts and the wider insurance sector. These sub-groups were also established to promote the benefits of microinsurance, develop training materials, and to share data and technical knowledge with industry peers.
The CGAP WG MI had set itself a precedent and soon became a platform for researchers, experts, donors and investors to share information and receive guidance – a collaboration that would change the course of microinsurance and its ecosystem.
Many hands make light work
Today, the MiN has comprises some 500 members, generous support from the Government of Luxembourg, and goals that align with the UN’s Sustainable Development Goals (SDGs). Through its flagship Landscape of Microinsurance Study, global events, regional workshops, and Best Practice Groups (BPGs), members are able to exchange knowledge to facilitate the development of relevant products and services, and ultimately ensure greater uptake of microinsurance.
With thought leadership, education, and cross-sector stakeholder engagement the key elements of this vision, the early years of the Network saw the production of some ground-breaking pieces of literature, much of which would go on to have global reach, helping inspire additional organisations and initiatives in the inclusive insurance space.
The first pioneering undertaking of this kind – as highlighted by founding member Craig Churchill – was the Good and Bad Practices in Microinsurance project, a series of 24 case studies which documented various microinsurance operations around the world. The findings were crucial and contributed to Protecting the Poor: A Microinsurance Compendium - Volume I, a compilation of insights from leading academics, actuaries, insurance and development professionals, published in 2006 to reflect the state of the microinsurance practice. The works revealed that while insurance for the poor could be viable, many of the then-available products lacked true value to low-income consumers, which was a precursor to the establishment of the ILO’s Microinsurance Innovation Facility in 2008.
This milestone moment reflected the impact of the CGAP WG MI; the platform had transformed into a highly engaged network, shaping the actions and decisions of fellow organisations, and its publications were eye-opening to the industry in terms of what was happening in the field.
A new, more formalised structure was needed to harness this early success, prompting the decision to rebrand as the Microinsurance Network, with an Executive Committee, membership fees, a staffed secretariat and multiple working groups. One such group, on Regulation, Supervision and Policy (RSP) working jointly with the International Association of Insurance Supervisors (IAIS) helped develop standards, guidelines, and capacity development measures for insurance supervisors.
The group’s initial workings drew on information from the MiN’s Five Country Studies on Colombia, India, Philippines, South Africa and Uganda, the literature of which provided a wealth of knowledge around regulatory obstacles. Not long after, in 2009, one of the outcomes of the joint MiN-IAIS group became the Access to Insurance Initiative (A2ii).
Not long after this landmark moment, Performance Indicators in Microinsurance - A Handbook for Microinsurance Practitioners (2nd Edition) was published. Complete with a factsheet and handbook to facilitate and interpret the calculation of key performance indicators and results, the guide became a sole reference point for those operating in the sector and is still widely used to this day.
Knowledge is power
By 2013, MiN members had access to a wealth of information, enabling them to set up the appropriate infrastructure and deliver insurance services to low-income populations. Papers such as The Emergence and Development of Agriculture Microinsurance, to the guide Lessons Learned and Good Practices in Health Microinsurance, are both prime examples of the critical insight MiN was procuring through its working groups. For practitioners, this level of understanding was key; with in-depth market knowledge, they could design and administer viable microinsurance schemes.
And the literature kept on coming. In 2014, 12 more publications were published, including Agriculture, Microinsurance, and Rural Development, which focused on smallholder farming; and Exploring new frontiers: The potential of impact investments in microinsurance, which served as a high-level review of microinsurance investments, identifying opportunities, challenges, and recommendations on support mechanisms.
By this stage the Network had moved into the realm of events, from its support in organising the Munich Re Foundation’s annual International Conference on Inclusive Insurance (formerly known as the International Microinsurance Conference) and its very own annual June Member Meetings. The Network had also started to organise Expert Forums, short periodical webinars, on relevant topics selected from ongoing discussions with members and member survey results. The MiN’s partnership with the A2ii had also flourished, leading to a series of tri-annual global Consultative Forums on matters of regulation in microinsurance.
Such events became an integral part of the MiN’s mission and a true testament to its convening power for experts to exchange knowledge, experiences and best practices. Momentum was gathering and the Network was gaining an active voice in advocacy and thought leadership within the microinsurance space.
The State of Microinsurance, bringing together some of the most authoritative voices within the field, provided an in-depth review of the state of microinsurance. By its third edition, the journal had taken on an in-depth role, with a selection of proposals made by an Editorial Board. The journal examined pioneering microinsurance solutions for climate change, mobile-based applications, agricultural and health insurance, risk reduction, and the challenges of index-based insurance. It covered pilot programmes in Bangladesh, India, Burundi, Kenya, Mali, Senegal and Central America, and shared lessons from various initiatives, including the Climate Insurance Fund, the R4 Rural Resilience Initiative, and the Agriculture and Climate Risk Enterprise.
While the State of Microinsurance provided a qualitative collective stock-take of the sector, the Network’s flagship programme has been the Landscape Study, which is the only collection of market data of its kind and continues to be instrumental in driving the micro/inclusive insurance market forward. This will be more fully explored in the next part of this mini-series.
At a crossroads
By 2017, the world of inclusive insurance began to evolve rapidly; data analytics and artificial intelligence were changing the face of applications, and mobile insurance had become a fast-emerging concept. For MiN, such growth was welcome, but did not come without challenges, as adaptation was needed to a changing landscape.
As the only global platform bringing together insurers, regulators, development agencies, NGOs and policymakers, among others, the role of the MiN was pivotal. The Network provided members with understanding and access to the latest research, developments, and sector trends - all essential elements to delivering microinsurance products. The stage had been set, and as 2018 rolled around, it was clear the MiN’s remit to regionalise and be a key enabler on the ground in Africa, Asia and Latin America and the Caribbean was paramount to its evolution.
New horizons
By 2020, international concern on the impacts of climate change was bringing everyone – the insurance industry included – together, and inclusive insurance was increasingly recognised as an integral part of achieving the SDGs. Perceptions of the sector were changing.
Having already played a central role in helping international standards through knowledge sharing in its formative years, the MiN’s transformation into a true inclusive insurance ecosystem – one that was made of insurers, technical service providers, public and private donors, think tanks, academia, impact investors, intermediaries and regulators, meant it was a vital player in the mission to achieve greater resilience in the face of the climate crisis.
Even the pandemic couldn’t shift this stance, and amidst the bleakness, opportunities for innovation were found and the MiN adapted with some digital events setting record-high rates in participation across the globe.
The Network is now entering a new era, and as it does it will continue to evolve and adapt, to seize new opportunities and continue to generate market intelligence and thought leadership to drive the inclusive insurance market forward. And with its active community of members by its side, and a proven track record of success to boot, it is well-placed to achieve further sustained success.
In the second part of this mini-series, we will explore the current progress and achievements of the MiN, including the Landscape programme, and hearing from members themselves, on how through it all, the Network is moving ever closer to delivering on its vision of a world where people of all income levels are more resilient and less vulnerable to daily and catastrophic risks.