This report aims at presenting major descriptive results of the analysis of the survey data with regard to the socioeconomic profile of the target market, general knowledge of insurance, the characteristics, and the satisfaction of the anidaso policyholders, business competition regarding other insurance providers and the potential demand in the area of observation. Unsgsa the key to successful microinsurance for the poor. Nigerian financial services fraud estimated at n 197 billion annually. Ghana association of saving and loans companies ghasalc the credit life policy is an innovative product designed by star microinsurance to provide cover for both the savings and loans companies and their clients. Microfinance is generally seen as a way to fix credit markets and unleash the productive capacities of poor people dependent on selfemployment.
There is enormous scope for increasing the practice of mfibased microinsurance, not just in terms of overall volume of business, but also in the variety of risks covered. Although uganda was one of the first countries in which a formal microinsurance product was sold in 1997, microinsurance has not developed to the extent that it has in other countries within the region. One key constraint to the growth of microinsurance is the dearth of available information for mfis to draw upon. The delta life insurance is the first private regulated insurance company in bangladesh that entered in the microinsurance market in 1988. In ghana microinsurance has seen rapid growth over the past few years as more and. The definition of microinsurance can be split into its two aspects. What is needed are projectrelated financial donations and sustained initiatives that will. Beyond some donor funded projects, product development initiatives have scaled up. Apr 16, 2014 this paper examines the link between microinsurance services and households asset accumulation in ghana. Silc members renew their registration for the hmi product.
Drawing from the mfis and the national health insurance success story, especially its high patronage among the informal sector, experts has tipped ghana as a viable market for this segment but unfortunately, coverage to the poor farmers, traders, casual workers at the rural areas who. Proposedtransitionalmicroinsuranceframeworkexplanatorynote. Focus on selected countries this study marks a departure from previous studies, in that it piloted a new methodology that will enable us to cover target countries. Promoting microinsurance in ghana in ghana microinsurance as a means of insurance sector development in ghana microinsurance has seen rapid growth over the past few years as more and more insurance providers have expanded their services to the lowincome market. Assessment of microinsurance as emerging microfinance for the. However, empirical research on what constitutes client value in microinsurance has been limited. This explains the huge potential for microinsurance in ghana. In the northern region, where the study was located, active enrollment was estimated at. Led by the ilos microinsurance innovation facility and the microinsurance centre, this study identified over fourteen million lowincome people in africa who were covered by microinsurance at the end of 2008. May 31, 20 growth of the global economy alone will not be enough to combat poverty in the developing countries. It subsequently merged this scheme with a targeted scheme for the poor to create a. National insurance commission guidelines for microinsurance operation in nigeria.
The demand for microinsurance in rural ghana published on 1 december 2008. Alice merry, financial inclusion consultant, peru isbn 9782919945351 the publication is protected by the law of the 18th april 2001 of the grandduchy of. A product offered in ghana and tanzania provides free microinsurance to mobile subscribers on an opt in basis, extending life insurance in proportion to airtime purchased. Yet, the most contracted insurance type is the health insurance, which is mainly provided by the nhis, followed by the anidaso policy. In july 2008, star microinsurance services ltd was incorporated as an independent agency to collaborate with star assurance company ltd and starlife assurance company ltd both the fourth largest general and life insurance companies respectively in ghana. It takes into account the submissions received, as well as. Proposedtransitional microinsurance frameworkexplanatorynote.
Using finscope data from the nationwide household surveys conducted by finmark trust, we created a household asset index using the multiple correspondence analysis approach. The impact of health insurance education on enrollment of. Firstly, what constitutes insurance and secondly, what is micro in microinsurance. Characteristics of philhealths igroup program box 7. Assessment of microinsurance as emerging microfinance. In ghana, minsurance plays an important role in the microinsurance sector. Assessment of microinsurance as emerging microfinance for.
The program has resulted in over a million microinsurance clients, 80% of them using insurance for the first time. Microinsurance is growing and expanding throughout africa. In ghana, cbhi schemes were consolidated into a government scheme, which is managed at district level. Pdf risk management in the ghanaian insurance industry. The demand for microinsurance in rural ghana microinsurance. Mounting concern prompted the issuance of three joint circulars by the insurance commission, the cooperative development authority, and the securities and. The purpose of this product is to help reduce some of the risk associated with credit delivery. The impact of microinsurance on household asset accumulation.
Demand for microinsurance in rural ghana december 2008 1 1. Government financial institutions, on the other hand, are allowed to lend by providing wholesale funds to private financial institutions using marketbased interest rates. A case study of an example of the provider model of microinsurance provision mccord microsave marketled solutions for financial services 2 table of tables table i. Microsave india focus note 88 challenges of microinsurance in india premasis mukherjee. Womens world banking ghana 8 find out more 8 2 communitybased organisations 9. May 23, 2019 microinsurance centre is a consulting firm dedicated to generating access to valuable microinsurance products to 3 billion lowincome people across the globe. Social affairs assessing the success of microinsurance. The south african microinsurance regulatory framework policy document is the final outcome of the consultative process initiated after the publication of a discussion paper the future of microinsurance in south africa in april 2008 available on. In thailand, the government incorporated lessons from early cbhi schemes in the design of a voluntary scheme for informal workers. May 24, 2016 this explains the huge potential for microinsurance in ghana. How new developments affect the work of actuaries microinsurance centre. The indu stry in ghana is gove rne d by the insu ranc e act of 2006, act 724. Promoting microinsurance promoting microinsurance in ghana in ghana microinsurance as a means of insurance sector development in ghana microinsurance has seen rapid growth over the past few years as more and more insurance providers have expanded their services to the lowincome market.
Microinsurance centre is a consulting firm dedicated to generating access to valuable microinsurance products to 3 billion lowincome people across the globe. Microinsurance facts in bangladesh rashed al hasan1 the microinsurance concept in bangladesh has been originated from the practice of microcredit programme of grameen bank and other ngosmfis. Sms credit, pooja kumar at eko, mike mccaffrey at undps pacific financial inclusion programme, nina schuler at leapfrog labs and to the teams at mtn ghana, tigo honduras, globe gcash, smart philippines and telenor pakistan. Cdc consult, microinsurance centre at milliman, promigh.
Demand for microinsurance in rural ghana december 2008 7 with 87 of 95 purchased life insurances, glico is the main life insurance provider in this area. Heckman sample selection, instrumental variable and treatment effects models to. Our scan documented an increase in the number of new products going to market every year with the exception of 2009, which was at the height of the global financial crisis, from two in 2006 to 20 in 2012. Involve technical expertise in microinsurance operations and take a patient approach several years, but define a clear, timebound exit strategy. Yemo osinbajo, nigerias vice president, estimated the annual cost of nigerian telecommunications related financial services fraud. Mobile insurance minsurance is an innovative line of insurance products, whereby the mobile networks are used to deliver one or multiple components of insurance for the mass market. Microinsurance framework andor regulation framework andor regulation main areas addressed 2015 enhanced microinsurance regulatory framework permissible functions of regular agents, general agents, and brokers in microinsurance provision how microinsurance products may be bundled cession and acceptance of microinsurance risk others. Introduction risk and vulnerability to risk are fundamental causes of. In ghana, microinsurance industry development is being spearheaded by the national insurance commission nic to expand the insurance market and facilitate improved access to and the usage of insurance services by msmes and lowincome households. However, in india, as in many countries, the sector is yet to realise its potential. Assessment of microinsurance as emerging microfinance service. Other country experiences using cbhi schemes as a foundation for uhc box 6. Microinsurance is a good instrument for improving the welfare of households and thus this research recommends its integration into the poverty reduction strategy of ghana and a greater insurance inclusion for the lower end of the market. Mobile insurance models could be either strategic mobile network operator mno offers insurance under.
A savingslinked microinsurance initiative in ghana, malawi, and uganda opportunity international and its subsidiary microensure, a ukbased microinsurance intermediary, have developed a savings linked insurance product called edusave, which offers free insurance for school fees coverage. Microinsurance experiences from ghana film by giz youtube. Pdf this paper investigates the conditions under which households decide to participate in the emerging microinsurance market. Mi business thresholds financial soundness prudential governance reporting. Microinsurance is an outgrowth of the microfinancing projects developed by bangladeshi nobel prizewinning banker and economist muhammad yunus, which helped millions of lowincome individuals in asia and africa to set up businesses and buy houses. Pdf uptake of micro life insurance in rural ghana researchgate. Ghana is another country where microinsurance has covered a large segment of lowincome households. A product offered in ghana and tanzania provides free microinsurance to mobile subscribers on an optin basis, extending life insurance in proportion to airtime purchased. The impact of microinsurance on household welfare in ghana. It spells out the strategic approach chosen, and the principles and key elements underlying this process. Approximately 60% of lives as of 2014 are insured by microinsurance products delivered via mobile insurance.
A savingslinked microinsurance initiative in ghana, malawi, and uganda opportunity international and its subsidiary microensure, a ukbased microinsurance intermediary, have developed a savingslinked insurance product called edusave, which offers free insurance for school fees coverage. Hence, microinsurance is in essence the same as regular insurance. Developmentofandrequirementsformicroinsurancecontracts developmentofmicroinsurancecontracts 5 1. Microinsurance distribution channels contents contents 3 executive summary 4 1 financial institutions 7 think beyond enrolment. Microinsurance is an important mechanism for managing uncertainties and vulnerabilities of lowincome segments of the population. Microinsurance is commonly defined as the protection of lowincome people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved churchill, 2006, p. Case study ghana 11 1 landscape of microinsurance in africa 2018. Enabling policy environment for access to insurance.
Thus, the fact that microinsurance products were not assigned randomly and their widespread nature limit. Landscape of microinsurance in ghana 2015 01 1 counted based on primary cover of the policies section 0. The microinsurance policy paper maps out the national insurance commissions nic future path in the regulation and supervision of microinsurance in ghana. Brief of mobile microinsurance trends in products, providers, and business models the number of mmi deployments is growing fast.
Protecta 8 think about a microinsurance intermediary. This act comp lies largely with the interna tion al asso ciati on of ins uran ce supe rviso rs 2 011 co re. The focus of this conference was on the learning sessions and from our interactions with participants, we have no doubt that this conference has pushed the frontiers of knowledge on microinsurance in ghana, and provided manifold opportunities for the exchange of approaches, experiences and perspectives. Henk van oosterhout is the interim executive director of. Coordinate microinsurance efforts with other donors, privatesector insurers, and governments. Growth of the global economy alone will not be enough to combat poverty in the developing countries.
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