Millions of poor households in many countries still lack access to valuable microinsurance products. There is an urgent need to accelerate the growth of insurance markets for low-income people in these countries. To do so requires a structured market development process that brings together the full range of stakeholders, from governments to insurers and distributors, to implement targeted interventions. This approach has already had promising results in Zambia, for example, where targeted interventions over three years resulted in the provision of five new microinsurance products serving 220,000 clients.
A structured process that brings together the full range of stakeholders, from governments to insurers and distributors, can accelerate the development of an insurance market.
Governments are increasingly using insurance as a tool to achieve public policy objectives related to expanding social protection and developing inclusive insurance markets.
Consumer protection initiatives aim to ensure the provision of appropriate microinsurance products by insurers and the effective use of products by low-income consumers to protect themselves against risk.
A smart subsidy is one that is put in place for a clearly documented objective, targets those who need it, and is designed to address its objective as efficiently as possible.