MR Microinsurance_2012_03_29.indd - International Labour ...

18 Emerging issues
Like the fable of the tortoise and the hare, these slow and steady incremental
improvements are not as captivating as the major leaps, but they are perhaps
more important for fostering a culture of insurance in low-income markets and
creating a firm foundation for future expansion. Ultimately these incremental
improvements are signs that stakeholders in some countries are getting the fundamentals
right – an enabling environment, an informed consumer and responsive
insurers, which combine to produce a vibrant microinsurance market.
To avoid painting an overly rosy picture, it is useful to note that progress
remains patchy. For every developing country that is experiencing significant
growth, there are at least three or four that are stagnant or have limited microinsurance
activity. The growth inhibitors are largely the converse of the enablers,
including the lack of demand and limited capacity of the insurance industry to
innovate. The process of creating a culture of insurance can take years, if not a
generation.
1.3 Stakeholders in microinsurance are becoming more diverse
In the realms of public policy and international development, microinsurance is
interesting because of its potential to support many different efforts. Few agencies
have microinsurance departments. Instead, insurance is a sub-theme that
cuts across various domains, including health and social protection, agricultural
and livestock development, climate change and disaster management, microfinance,
and small enterprise and cooperative development. As a result, more
types of organization are becoming involved in microinsurance.
In the first volume, there was a preponderance of experiences that involved
community-based mutual schemes and partnerships between insurance companies
and MFIs. While these arrangements still account for a sizable portion of
microinsurance outreach, they have been eclipsed by other institutional arrangements
including public-private partnerships and alternative distribution channels.
Furthermore, other players are also taking on important roles in creating the
conditions for microinsurance to succeed, through proactive public policies, supportive
regulations, or as meso-level enablers such as consultants, technology
providers, funders and promoters.
This section examines the third trend – the greater involvement of a diversity
of stakeholders – including: 1) insurers and reinsurers; 2) delivery channels;
3) governments; and 4) enablers.
1.3.1 Insurers and reinsurers
The insurance industry has microinsurance in its genes. From the risk-pooling by
artisans’ guilds and friendly societies to the introduction of industrial assurance