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Formalizing the informal insurance inherent in migration

Microinsurance Paper #:



  Formalizing the informal insurance inherent in migration


Jennifer Powers, EA Consultants
Barbara Magnoni, EA Consultants
Emily Zimmerman, EA Consultants

Date of Publication:

  March 2011


In our increasingly global economy, labor continues to be a major export commodity for many developing countries. Migration can help families mitigate their risks by increasing overall income levels and diversifying income sources. Yet, many migrants tend to find themselves in positions of vulnerability in their host countries without any access to social safety nets. Emergencies can, thus, quickly erode any savings or assets that the migrant has. Migrant-linked insurance products can help transnational families manage their risks and protect their assets. Microinsurance Paper #7 explores the existing and potential links between migration, remittances and insurance. It provides a mapping of migration-linked microinsurance products, a framework for how to think about them, and an outline of the opportunities and challenges for microinsurers interested in developing products for this market segment.

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