Responsible Finance Forum

Making insurance markets work for the poor: microinsurance policy, regulation and supervision

Hennie Bester, Doubell Chamberlain and Christine Hougaard
12 January 2009
Source:  Center for Financial Inclusion

In times of crisis, poor people are often the most at risk and least able to protect themselves. Calamities such as the sudden death of a family member, illness or injury, and loss of income or property can increase the vulnerability of poor people and perpetuate poverty.Insurance can mitigate the losses from such risks. However, despite the growing importance and rapid expansion of insurance services geared to low-income households (microinsurance), many poor people remain without adequate protection.

This report presents an overview of the role of policy, regulation and supervision in the development of microinsurance markets in Colombia, India, the Philippines, South Africa and Uganda. This evidence is then used to extract cross-country lessons for policymakers, regulators and supervisors looking to support the development of microinsurance in their jurisdictions.