The 2017 Brookings Financial and Digital Inclusion Project (FDIP) report evaluates access to and usage of affordable financial services by underserved people across 26 geographically, politically, and economically diverse countries. The report assesses these countries’ financial inclusion ecosystems based on four dimensions of financial inclusion: country commitment, mobile capacity, regulatory environment, and adoption of selected traditional and digital financial services. The report further examines key developments in the global financial inclusion landscape, highlights selected financial inclusion initiatives within the 26 FDIP countries over the previous year, and provides targeted recommendations aimed at advancing financial inclusion.
A new synthesis paper “Local Training Providers for Microinsurance Capacity Building” published by the Microinsurance Network Capacity Building Working Group (CBWG) presents a number of case studies looking at what lessons Local Training Providers (LTPs) can learn in rolling out high-quality and sustainable microinsurance training.
Although microinsurance is increasingly recognised as a risk mitigation tool, coverage remains relatively low. One of the many reasons for this is the lack of appropriate knowledge and skills among microinsurance practitioners to accurately address the needs of a large number of low income people. LTPs are particularly well-positioned to facilitate the adoption of best practices because of their knowledge of the local context and ability to establish close relationships with local microinsurance practitioners. However, today there are only few LTPs around the world offering microinsurance capacity building services. Those that do may not always have the training content or necessary teaching expertise to provide the kind of training demanded or required by market participants.
To support LTPs in providing high-quality, sustainable microinsurance training, the CBWG of the Network and the ILO’s Impact Insurance Facility developed a concept paper on how microinsurance training material can be developed and maintained, how training can be effectively delivered, and analysed how LTPs can operate most sustainably.
The current synthesis paper complements this concept paper with a number of case studies from Central Asia (conducted by the Microfinance Centre), Africa (Cenfri), Latin America (Instituto National de Seguros), and consolidated experiences from several other LTPs. Together they reflect different institutional structures and provide an insightful overview of training activities in a diverse range of markets. In so doing, this study contributes to the market development approach outlined in the recent CGAP publication ‘Facilitating the Market for Capacity Building Services’ and helps answer the question: “What does it take to facilitate a sustainable, commercially viable market for capacity building services delivered to financial service providers”?
Lessons for the next wave of microinsurance distribution innovation
Achieving scale through cost-effective distribution is one of the biggest challenges facing insurers in low-premium environments. The emphasis is increasingly falling on innovative distribution models as alternatives to traditional microinsurance distribution approaches, which typically rely on microfinance institutions. During the last decade, insurance providers and their distribution partners have been experimenting internationally with developing and extending products to clients in new ways. This note takes stock of fourteen microinsurance business models in South Africa, Colombia, Brazil and India that use alternative distribution channels. It provides a summary of the cross-cutting issues and trends emerging across the different distribution models.