Microinsurance research study

Description

There is a need for further research and analysis to examine the feasibility and potential of micro-insurance, its relevance and role within disaster risk management and to weigh up the benefits and limitations for the different stakeholders involved (households, communities, MFIs, NGOs, governments, donors, IFIs and insurance companies, etc).

To this end, ProVention collaborated with IIASA on a research initiative to analyse the benefits, limitations and viability of microinsurance for natural disaster risks in developing countries.

This research project aimed to:

  • Examine the viability of micro-insurance as a mechanism of risk transfer and tool for disaster risk management in developing countries;
  • Provide a state of the art analysis of microinsurance for natural disaster risks and gain a better understanding of currently operational microinsurance schemes with cover for disaster risks;
  • Reflect on the opportunities and challenges of micro-insurance provision for disaster risks in developing countries, highlighting both the potential benefits and limitations of micro-insurance as an instrument for transferring disaster risk;
  • Consider the interests and perspectives of different stakeholders and the incentives and disincentives for participating and investing in a micro-insurance scheme;
  • Enhance dialogue and collaboration on this topic between and within the commercial insurance sector and the disaster risk reduction communities.

The research documented a range of operational microinsurance schemes with financial protection for disaster risks and provides an extensive literature review on the subject of microinsurance with a focus on disaster risks.

Partners

The International Institute for Applied Systems Analysis (IIASA) led the research with wide consultation and input from a range of ProVention partners and other key organisations active in microinsurance, including AIDMI, Munich Re Foundation, Interpolis Re, Oxfam, CGAP, MicroInsurance Center, World Bank and SLF Davos.

Timeline

The project was launched in September 2005 and the final report was published in July 2006.

Outputs & events