MR Microinsurance_2012_03_29.indd - International Labour ...

352 Insurance and the low-income market
risks these families face, such as repatriation, remittance protection, 4 work accidents
and unemployment.
17.2 Framework: Th e 3Hs of migration-linked insurance
Th ree types of models have emerged to address the microinsurance needs of
migrants and their families. Dubbed the 3Hs in Magnoni et al. (2010), these
models are the Host country model, the Home country model and the Hybrid
model (see Table 17.1). Th e defi ning characteristic of each of these models is where
the risk-taking entity or insurer is based.
In the Host country model, the insurer is located in the country to which the
migrant has immigrated. Programmes of this type are best placed to insure the
migrants themselves and may also have the potential to reach greater scale as they
can easily serve migrants from multiple countries of origin. Th e Host country
model typically does not insure the migrant’s family back home, but may indirectly
off er security to migrants’ families. For example, SegurCaixa’s repatriation
and accidental death insurance provides families with a cash benefi t that can ease
the shock of losing remittance income in the event of a death or accident (see Box
17.1).
Box 17.1 SegurCaixa’s repatriation and accidental death insurance
SeguraCaixa, an affi liate of La Caixa, one of the largest cooperatives in Spain,
off ers some of the few migration-linked insurance products to reach a reasonable
scale. In 2008, 66 000 legal migrants, mostly coming from Africa and Latin
America, were insured with SegurCaixa Repatriación, which pays a lump sum
upon death of the migrant and repatriation of the migrant’s body, and 14 000
were covered by SegurIngreso, which pays a lump sum upon death of the
migrant and regular monthly income to the family for fi ve years following death.
Monthly premiums start at €7 (US$10).
Sources: www.laCaixa.es and SegurCaixa Holding Annual Report, 2008.
In the Home country model, the risk-taking entity is located in the migrant’s
country of origin. Th e insured can be the migrant and/or the migrant’s family
depending on the product and distribution channel.
4 Such products should consider the unique needs of those most likely to be left behind. For example,
Magnoni et al. (2010) found that most family members back home are parents and in-laws, suggesting
that health insurance related to the problems of ageing populations might be more appropriate for
this community.