Protecting the poor a microinsurance

Munich Re Foundation This volume is a unique collection of recent practices and emerging ideas in microinsurance. It addresses the trend towards more complex covers, including index insurance and climate change and disaster cover chapter 4 and its consistency with the risk management needs of poor households.

Protecting the poor a microinsurance

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Shutterstock Pierre-Yves Babelon New microinsurance models hold promise to gird vulnerable individuals, such as smallholder farmers in Africa, against the financial risks associated with climate change.

Much of the talk about climate change adaptation has focused on investment — in things such as stronger infrastructure, renewable energymicrogrids and disaster response capabilities.

But another area could be just as important in helping communities in the developing world bounce back from climate change impacts: Insurance approaches have been mentioned in the United Nations climate negotiations since the early s. Last year, Germany led the G7 toward a commitment to increase climate risk insurance from million people in the developing world today to million by Can microinsurance protect the poor from climate change?

Microinsurance is a "means of protecting low-income people against specific risks in exchange for a regular payment of premiums whose amount is proportional to the likelihood and cost of the relevant risk," according to the Microinsurance Networka microinsurance nonprofit.

The primary distinction from conventional insurance is in the targeting of low-income people, which leads to distinct characteristics and objectives, including addressing the particular risks of poor people, affordability and accessibility, among others.

And this is a growth market: From tothe microinsurance industry expanded from an estimated 78 million clients to more than million, said the Microinsurance Network. In the same period, total demand increased more than 10 percent per year, and premium growth surpassed that in the developed markets.

Protecting the poor a microinsurance

One area where Paris was a failure was in sorting out how adequate funding will reliably and transparently flow to help developing countries make the transition to a low-carbon economy. Still, the question remains how many people living in poverty really would be able to pay for a new insurance premium, and what sorts of consumer protections would have to be in place to ensure that microinsurance systems function as promised.

Protecting the poor: A microinsurance compendium - Microfinance | XING

It's a similar challenge as that posed by the nascent off-grid renewable energy industrywhere providers say they can offer reliable services at affordable costs in developing countries, yet it remains to be seen if they can deliver on that pitch at scale.

Regardless, innovations in microinsurance already are creating new investment opportunities for companies such as Bima MobileMicroEnsure and MFS Africawhich act as technical service providers for insurers, banks, credit providers and mobile network operators.

They already have attracted millions of investment dollars and are creating platforms for growth in microinsurance. Digital tech helps insure smallholder farmers in Kenya A prolonged drought in northern Kenya has pushed many smallholder farmers to the brink of financial ruin, but microinsurance powered by digital technology might just help save them.

Inthe Syngenta Foundation for Sustainable Agriculture and the Kenyan telecom operator Safaricom piloted a program called Kilimo Salama to insure smallholder farmers against the possibility of drought and excessive rain.

The program used weather monitoring stations armed with sensors to determine weather patterns.

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If there is too little or too much rain, then the farmers get a payout sent directly to them via a mobile payment platform called M-Pesa. Inthe company helped insure overfarmers in Kenya, Tanzania and Rwanda. If anything, this shows how a non-profit innovation can open an entirely new market to socially conscious entrepreneurs.

Climate insurance as a resilience investment That the global South is least responsible for generating the carbon emissions causing climate change but is suffering the most from its impacts was a popular topic at COP Developing countries, led by India and China, argued that the wealthier nations of the global North should pay to help poorer countries both transition to low-carbon economies and improve resilience against climate impacts.

Meanwhile, microinsurance may turn out to be one of the better resilience investments we can make to help people on a more personal level.Microinsurance is the provision of insurance services to the poor, usually in developing countries.

One of the key criteria of poverty is vulnerability even to minor events. In such cases, even micro coverage can make a major difference, yet still be funded by an affordable contribution by the.

This authoritative compendium brings together the latest thinking of leading academics, actuaries, and insurance and development professionals in the microinsurance field. The result is a practical, wideranging resource that provides the most thorough overview of the subject to date.

The book covers 5/5(1). Protecting the poor against agricultural risks Status and lessons learnt from microinsuranceStatus and lessons learnt from microinsurance Dirk Reinhard Microinsurance coverage increased by more than % between and Live insurance is the main driver of growth.

As the microinsurance community dramatically evolves and millions more low income households have access to better insurance, Protecting the Poor will be an invaluable resource for policymakers and practitioners r-bridal.com: Craig Churchill. Radermacher, Ralf and Dror, Iddo and Noble, Gerry, Challenges and Strategies to Extend Health Insurance to the Poor.

PROTECTING THE POOR - A MICROINSURANCE COMPENDIUM, Churchill C., ed., Munich Re Foundation/ILO, Microinsurance is a system of protecting poor people against specific shocks using risk pooling in return for regular affordabl e premium payments proportionate to the likelihood and cost of the risk involved.

2 Appropriate delivery mechanisms, procedures.

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