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Mainstreaming impact insurance globally

Rationale

The value of inclusive insurance markets to benefit low-income households is becoming increasingly accepted in development circles. There is also a growing knowledge about successful inclusive insurance operations and the dos and don’ts of designing and delivering valuable insurance services to low-income households.

However, these lessons have not been broadly adopted by insurers, and many insurance markets are not fulfilling their potential to contribute to social and economic development. Providers often lack the skills needed to offer products that are viable for them and valuable for consumers. At the local level, training programmes are frequently unavailable and training institutions have limited capacity and resources to address market needs. Overall, the growing body of knowledge in inclusive insurance has yet to be organized into a formal programme that follows rigorous standards.

Purpose

As part of our mandate to develop inclusive insurance markets, the Facility works to improve the quality and quantity of inclusive insurance through a structured approach that promotes a sustainable model for building capacity in the different countries we work in. Through our successful capacity building programme, we aim to enable hundreds of practitioners to benefit from best practices and cross-country experiences, indirectly enabling millions of low-income people to benefit from valuable insurance solutions. Firstly, low and middle income households will manage risks in an efficient way that reduces vulnerability and increases their capacity to make productive investments in order to improve their livelihoods. Second, local training institutes will be able to deliver trainings in inclusive insurance and, therefore, build the capacity of the local markets. Finally, the insurance industry will serve new market segments and understand how to design and rollout products that respond to their needs, preferences and characteristics.

Activities

GBG Foundation will contribute to the Facility’s broader capacity building programme, consisting of the following components:

  • Provide capacity building and certification of local trainers in focus countries. We will work closely with selected local training institutes in focus countries to understand their strengths and weaknesses, and together draft an Engagement Plan that details the extent of our collaboration that will be implemented over a three-year period. Local trainers appointed and associated with these institutes are then selected from a shortlist to undergo a certification process that comprises training of trainers on our training methodology and courses. Trainers will be awarded the “Certified ILO Inclusive Insurance Trainer” title upon successful completion of all requirements, including a certification examination.
  • Support training delivery and integration of ILO training courses in the portfolio of local training providers. During the certification period, training courses targeted to insurance practitioners will be organized by the local training institutes in the focus countries, with the ILO trainers as lead trainers. As part of their certification process, local trainers will act both as participants and as co-facilitators during these trainings. The ILO courses will form part of the local training institutes’ portfolio and can then be provided by the “Certified ILO Inclusive Insurance Trainers”, with coaching and mentoring from the ILO. On top of the short training courses, the ILO will also work with the training institutes to either explore opportunities for mainstreaming inclusive insurance into their existing certification programmes, so that this important topic becomes a formal requirement for young professionals, or to create a new inclusive insurance certification at the national level.
  • Develop new training modules. The current modules in the ILO’s impact insurance curriculum cover a broad spectrum of the key issues that insurers need to tackle if they want to serve the low-income market. Through this partnership, some gaps in the curriculum, such as sales training, are going to be filled. Other gaps may also be identified based on assessment of capacity gaps with the training institutes.

Lessons

Emerging Insights

Publications

Other resources