MR Microinsurance_2012_03_29.indd - International Labour ...

340 Insurance and the low-income market
Figure 16.2 Examples of risk strategies and implications
Uninsured
risk
Example:
Risk of
widowhood
Risk
management
strategies
used
– Savings
– Investing in
property
and children’s
education
Adverse
implications
on welfare
in ST and LT
Business suff ers
due lack of
reinvestment,
causing income
loss
Adapted from Dercon and Kirchberger, 2008.
Shock
Death of
husband
– Funeral costs
– Loss of bread- bread-
winnerincome
Risk coping
strategies
used
– Use of savings
– Sale of assets
– Increase work
hours and
put children
to work
– Take high cost
loans
Adverse
implications
on welfare
in ST and LT
– Long-term
business
slowdown
– Long-term
health risks
– Heavy
indebtedness
Th e inadequacy and harm associated with many commonly used risk strategies
suggest a strong need for more robust options that can provide more adequate
and long-lasting cover without negative side-eff ects.
16.3 Gender-sensitive microinsurance
Microinsurance can provide adequate, long-lasting cover against shocks for poor
women if properly designed and marketed to address their needs. While a diverse
array of microinsurance products are becoming available, including schemes to protect
against crop failures, property damage, natural disasters, unemployment, disabilities
and the costs associated with women’s roles as caregivers, this discussion will
focus primarily on health and life microinsurance because those risks are typically
reported to exert the most fi nancial pressure on poor women (Roth et al., 2007).
Successful microinsurance programmes must strike a balance between providing
cover that meets the needs of poor women, minimizing operating costs for the
delivery outlet and insurers and keeping premiums low to foster aff ordability and
accessibility (Churchill, 2006). Th ere are several useful examples in the market. Th e
Micro Insurance Academy presents clients with a “menu” of benefi ts, allowing them
to pick and choose attributes depending on their needs and ability to pay. Others
have off ered clients other fi nancial products such as savings accounts or emergency
loans to supplement gaps in their microinsurance programmes. Th e boxes presented
in this section provide some examples of gender-sensitive microinsurance.
16.3.1 Design attributes
Aff ordable women’s health and maternity benefi ts
Health microinsurance for women must go beyond the coverage of basic health
needs to cover women’s lifecycle health risks, including reproductive health issues,