MR Microinsurance_2012_03_29.indd - International Labour ...

Formalizing the informal insurance inherent in migration
the Philippines use placement agencies to secure employment, visas, and other
documentation; these agencies can be an excellent distribution channel for
microinsurance (see Box 17.2). It is important to note, however, that much legal
migration is short-term in nature, usually seasonal or for one to three years, making
product design and premium collection easier, but limiting the potential for
client retention.
Marketing and sales by Home models when the migrant is already in the host
country are more diffi cult due to regulatory restrictions on marketing and the
physical distance from the migrant. Many Home models have sought partners in
the host country to market their products; however, these partners may face their
own legal, regulatory or capacity constraints to marketing insurance (see Box
17.3). Internet-based solutions may help to overcome some restrictions, but are
unlikely to be eff ective without on-the-ground promotion in the host country.
Box 17.3 Th e right way to market? Medical plans for the families of Guatemalan
migrants in North North America
In 2007, IOM Guatemala brought together Empresa Promotora de Servicios de
Salud (EPSS), a health-care services company in Guatemala, and Microfi nance
International Corporation (MFIC), a US-based microfi nance and remittance pro- pro- pro-
cessing company, to allow Guatemalan migrants in the United States the opportunity
to buy pre-paid medical service plans for their families back home. EPSS has one of
the largest networks of health clinics and hospitals in Guatemala and MFIC’s affi li-
ate, Alante Financial, was already working with unbanked migrant communities
from Latin America in the United States to provide other fi nancial services.
In theory, the match seemed ideal, but the programme never got off the
ground, selling only 15 to 20 plans in the United States. According to staff inter-
viewed, the programme’s dismal results cannot be attributed to the product
design as EPSS’s plans are well priced and well regarded in Guatemala, but to
legal and distribution challenges that limited sales.
Concurrently, Concurrently, EPSS worked with the the Guatemala Canada Labour Migration
Programme to market to migrants going to Canada for seasonal work. After a
pilot in 2007, all 2 500 workers and their families in 2008, and 3 900 workers in
2009, were enrolled in the programme. It is expected that in 2010 the fi gure will
reach 4 000. Th is disparity in outreach between the US and Canadian programmes
highlights how key the distribution channel is to the success of migra-
tion-linked insurance and the additional diffi culties encountered when trying to
work with illegal or undocumented migrants.
Sources: Interviews with Sonia Pellecer, IOM Guatemala and Kai Schmitz, MFIC;
www.saludosualcance.net, www.mfi -corp.com, www.munichre-foundation.org.
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