Source: http://www.thejakartapost.com/news/2011/10/29/growth-needs-simplerproducts-and-marketing.

html

Growth needs simpler products and marketing

Linda Yulisman, The Jakarta Post, Jakarta | Sat, 10/29/2011 8:00 AM

The local insurance industry must design simple products with affordable pricing and use appropriate distribution channels to promote micro-insurance, which could potentially cushion the majority of the countrys low income population, financial stakeholders have said. World Bank senior insurance specialist Vijayasekar Kalavakonda said that distribution channels were still the biggest hurdle to marketing micro-insurance to low income clients. A lot of micro-insurance target-clients primarily work in the informal sector and thus have no employer-based wage rolls. How to sell is the biggest challenge, he told The Jakarta Post on the sidelines of the Microfinance Marketplace seminar on Wednesday. World Bank data shows that between 60 and 65 percent of the Indonesian working population is dependent on the informal sector for their livelihood, 40 percent of whom work in the agricultural sector. More than 50 percent of Indonesians live on less than US$2 per person on a daily basis and more than 80 percent live on less than $4, meaning that the possibility of falling into poverty is very high. However, more than one-third of the population, or around 77 million, still do not have access to financial protection. Vijayasekar said that the industry might look again at traditional methods employed in the insurance business, including insurance agents and brokers, and shift to new approaches, including the use of community organizations or mobile phones. The Indonesian Insurance Council (DAI) chairman Kornelius Simanjuntak raised another problem, saying that most existing insurance products currently could not penetrate the low-income segment, especially in rural areas, as they were too complicated. People in rural areas whose livelihood depends on agriculture really need protection from various risks, such as harvest failure and disasters, but current insurance products dont suit them due to complicated policies, he told reporters.

According to Kornelius, the insurance companies could reach the masses in rural areas with micro-insurance products with simplified contracts and affordable prices. Isa Rahmatawarta, head of insurance unit at the Capital Market and Financial Institution Supervisory Agency, acknowledged that pricing, contracts and distribution channels had been major concerns in developing micro-insurance in the country. Right now, he said, his agency was drafting a regulation that would, among other things, deal with micro-insurance arrangements. The crucial things are pricing and distribution. The main concern of the regulation will be whether the pricing is fair or not, how much the proportion of risk cost is compared to distribution cost, etc, he said, but declining to comment on the details of the regulation or the time-frame of its issuance. Martin Hintz, head of micro-insurance at Allianz Life Indonesia, which has served 570,000 micro-insurance customers nationwide since its inception in 2006, said that another issue to be addressed in the planned regulation would be simplifying licenses for people who sell the specific insurance products.

Source: http://www.justmeans.com/Kilimo-Salama-Farmers-in-Kenya-Cash-inon-a-New-Microinsurance-Program/50354.html

Kilimo Salama: Farmers in Kenya Cash in on a New Microinsurance Program

"Insurance...offers significant capacity and ability to understand, manage, and spread risks associated with weather-related events...increasingly so in developing countries and economies in transition." -- Evan Mills, Lawrence Berkeley National Laboratory[1] It's not easy being a farmer in Kenya, where less than a fifth of the land is suitable for cultivation. And it's particularly difficult during the Horn of Africa's worst drought in 60 years. But thanks to a microinsurance program that was launched last year, some corn and wheat farmers who lost their crops will be able to afford to farm next season. A joint-program started by the mobile operator Safaricom, UAP Insurance and Syngenta Foundation, a non-profit organization that supports small farmers in developing nations and emerging markets, Kilimo Salama ("safe farming" in Swahili), offers farmers an insurance policy for investments that are lost to the vicissitudes of weather. The set up is simple yet effective: Farmers who live in any of the five covered regions across Kenya -- Bungoma-Busia, Oyugis-Homa Bay, Nanyuki-Timau, Embu and Eldoret -- register with one of 30 solar-powered weather stations and purchase insurance when they buy seed or fertilizer. Drought severity is calculated by the weather stations and participating farmers receive payments through their mobile phones. GROWING TRUST: PAY AS YOU PLANT "This 'pay as you plant' type of insurance allows farmers to 'try out' insurance, a product they have never bought before and which has a negative reputation in Kenya," according to Syngenta. "Experience shows that as farmers learn to trust

insurance, they expand their coverage and are comfortable investing more in their farm, raising their productivity and increasing their food security."[2] "Many farmers find this to be an effective way of ensuring that, when adverse effects of nature set in, they can find an alternative source of funding in order to cultivate again," said Silas Waweru, an insured farmer who has cashed in on a payout.[3] GIVE A MAN A FISH... Some studies show that aid spurs economic growth. Others show the opposite effect. Still others show there is no net effect. But what is clear is that in a crisis situation, such as the drought in Africa, aid is necessary when immediate help is required, particularly with food, water and medical supplies. What is also clear is that the availability of aid is variable, uneven and attached to politics. In a 2009 IMF working paper, Camelia Minoiu from the IMF Institute and Sanjay G. Reddy, an economist from Columbia University, note that American aid, for example, is (unsurprisingly) influenced by its Middle East policy, while former colonial powers like the United Kingdom and France direct most bilateral aid to their former colonies (perhaps driven by a bit of colonial guilt).[4] And while they find that developmental aid is "likely to create sizable returns in the long run," it is just one tool in the poverty alleviation toolkit. Innovative microfinance concepts like Kilimo Salama are also powerful tools. BAADA YA DHIKI FARAJA With over 13 million people in Somalia, Ethiopia and Kenya who need immediate assistance, the recent announcement that the Bill & Melinda Gates Foundation is giving USD 4.1 million to support the drought relief efforts of the International Medical Corps and the Mercy Corps is certainly welcome news.[5] But it is also welcome news that the new Kilimo Salama microinsurance scheme has already had initial success. "We believe Kilimo Salama can revolutionize insurance and make it accessible to farmers," said UAP's managing director James Wambugu. "By using the weather stations to verify local weather conditions, we are avoiding claims procedures that have created mistrust and led people to avoid insurance. As such, this strategy has the potential to make agricultural microinsurance affordable and attractive for smallholder farmers and economically viable for insurance companies in developing countries that had previously written off the agricultural sector." The program hopes to ultimately reach 50,000 Kenyan farmers.[6] "Baada ya dhiki faraja" is a Swahili proverb that means, "After hardship, comes relief." For the some 12,000 Kenyan farmers who are enrolled in Kilimo Salama, this saying has become an economic reality.

Source: http://www.tempointeractive.com/hg/nasional/2011/10/27/brk,20111027363676,uk.html

World Bank Starts Campaign on Microinsurance

Thursday, 27 October, 2011 | 23:06 WIB TEMPO Interactive, Jakarta:The World Bank has started a campaign on the importance of insurance for the poor. Stefan Koeberle, the World Banks Country Director for Indonesia, suggested Indonesia to develop microinsurance. Indonesias natural landscape, which is prone to disaster, is considered to have a major impact on marginal household. Should a natural disaster occur, the impact is more severe in these household. So far, there are 77 million out of 238 million Indonesian citizens living without insurance or savings. Koeberle believed that microinsurance is also one of the key components of Indonesias National Financial Inclusion Strategy. Microinsurance provides affordable insurance products for a wider market segment which has been underserved.

Source: http://www.microfinancefocus.com/reminders-promote-contribution-savingslinked-insurance-products

Reminders promote contribution to savingslinked insurance products

Microfinance Focus, November 1, 2011: According to an emerging insight from ILOs Microinsurance Innovation Facility, studies show that reminders that create a mental link between contributions and a personal savings goal can promote savings and that people may prefer products that offer structured savings to products with more flexibility. These lessons can be applied to Max New York Life (MNYL) India which while implementing its microinsurance project found that customers save more often when given reminders. MNYL has a 10-year life insurance endowment policy, which includes an initial premium payment of Rs. 1000 and optional top-ups for savings. The policy offers more flexible to customers than traditional endowment policies because they are free to make top-ups as they choose, and savings are not required to keep the policy in force. MNYL expected the flexible structure to encourage savings. Only 22% of 90,000 policies were ever topped up, however, raising questions of whether the product was too flexible and whether additional structure, such as requiring quarterly topup, would have been more effective in promoting savings. Although top-ups increased to 51% during a three-month intensive marketing campaign, the number of top-ups dropped significantly after the campaign, suggesting that customers save more often when given reminders.

Source: http://www.marketwatch.com/story/opportunity-international-joins-industryleaders-in-alleviating-global-poverty-2011-11-01 Nov. 1, 2011, 8:02 a.m. EDT

Opportunity International Joins Industry Leaders in Alleviating Global Poverty

SEEP Conference Unites Experts to Transform Development Through Microenterprise

OAK BROOK, IL, Nov 01, 2011 (MARKETWIRE via COMTEX) -- This week, Opportunity International joins USAID, Credit Suisse, IFC World Bank Group, Blue Orchard, Grameen Foundation and other industry leaders in sponsoring the 2011 SEEP "Powering Connections" conference. Every year, SEEP brings together microfinance practitioners from a variety of disciplines to build capacity through the sharing of industry best practices. This conference is one of the cornerstones of development -- for four days thought-leaders will discuss innovative ways to use microfinance and microenterprise solutions to alleviate poverty in the developing world. "Microfinance is a powerful tool that is changing the face of international development. We are proud to be part of the SEEP network of organizations dedicated to empowering individuals and communities through microenterprise," said Dennis Ripley, Senior Vice President of International Development for Opportunity International. "One of the themes of the this year's SEEP Conference is savings, and through our participation we are joining in the conversation with other thought leaders from around the globe to discuss the evolving microfinance landscape, and how the various models and partnerships that are being developed by organizations to provide access to savings accounts are giving the world's poorest citizens a safety net for the future." SEEP "Powering Connections" will offer a number of workshops and plenary sessions on savings. In the plenary session "State of the Sector: Microfinance in an Evolving Landscape," David Simms, Board Chair of Opportunity International's Global Microfinance Operations, will join in a discussion about the progress the microfinance institutions have made over the last 30 years, and what the future will hold for the rapidly evolving financial ecosystem. The session will address the ways in which microfinance organizations can remain relevant and responsive to new demands, one area in which Opportunity International has

excelled through the expansion of its portfolio of financial tools that reach well beyond small business loans and extend to access to savings accounts, insurance and training. During the SEEP Conference, Opportunity International will also sponsor a workshop, "Unleashing the Power of Small Holder Farmers in Africa." The session, led by John Magnay, Opportunity International's Senior Agricultural Advisor, and Gilbert Lagaillarde, CEO of Opportunity International Democratic Republic of Congo (DRC), will look at how the organization's Agriculture Finance model provides African rural smallholder farmers with a full range of financial services that enable them to build a safety net for their families. Also participating in the SEEP Conference will be Ted Moser, an Opportunity International board member, who will present during a plenary session on using the latest technology advances to bring access to savings accounts to the world's most remote regions. Richard Leftley, CEO of MicroEnsure, a subsidiary of Opportunity International, will participate in a workshop that will analyze the defining characteristics of microinsurance and look at a variety of microinsurance partnership models. During the conference, Opportunity will also participate in a panel hosted by Credit Suisse that will explore efforts to improve collaboration and transparency among industry leaders in communicating the social impact and measurement of microfinance programs. What: Opportunity International is a gold sponsor of the 2011 SEEP "Powering Connections" conference focused on savings enterprise and market development. When: Monday, Oct. 31 - Thursday, Nov. 3, 2011 Where: Sheraton National Hotel, 900 South Orme Street, Arlington, Virginia Who: David Simms, Board Chair of Opportunity International's Global Microfinance Operations; Ted Moser, Opportunity International board member; Dennis Ripley, Senior Vice President of International Development for Opportunity International; Gilbert Lagaillarde, CEO, Opportunity DRC; John Magnay, senior agricultural advisor for Opportunity International; Richard Leftley, CEO of MicroEnsure, a subsidiary of Opportunity International, and other Opportunity International staff members will participate in plenary sessions and workshops during the conference. About Opportunity International Opportunity International provides access to savings accounts, small business loans, insurance and training to over 2.5 million people working their way out of poverty in the developing world. Clients in more than 20 countries use these financial tools to start or expand a business, provide for their families, create jobs for their neighbors and build a safety net for the

future. For more information, visit www.opportunity.org or join the conversation on Facebook and Twitter.
Source: http://nigerianobservernews.com/29102011/news/news8.html

NAICOM, German Agency Conduct Study Of Micro, Takaful Insurances

Last update 29/10/2011

The National Insurance Commission (NAICOM) says it has entered into agreement with a German agency, GIZ, to conduct a study of micro and Takaful (Islamic) insurance products in Nigeria. Mr. Fola Daniel, NAICOM Commissioner for Insurance, disclosed this on Thursday at a seminar organised for insurance correspondents in Uyo, Akwa Ibom. According to him, the gesture is part of NAICOMs drive to open up and develop insurance market at the grassroots. He said that this was also a means to increase the sectors contribution to the nations Gross Domestic Product (GDP). The Commission recently entered into an agreement with GIZ, a German agency for sustainable development, to conduct a diagnostic study of Micro and Takaful insurances in Nigeria. This is part of the NAICOMs drive to open up and develop the insurance market at the grassroots and by extension, increase the sectors contribution to the nations GDP, he said. Daniel said that the development of the micro insurance market was one of the objectives of the commissions market development and restructuring initiatives. He said that the development of micro insurance was both a moral and economic imperative for the promotion of inclusive financial system and equitable mitigation of risks. The commissioner said that the theme of the seminar was selected based on the recent developments in the realm of inclusive insurance and which NAICOM had taken interest in supporting and promoting.

Source: http://www.vanguardngr.com/2011/10/naicom-partners-german-agency-todevelop-micro-insurance/

NAICOM partners German agency to develop micro insurance

On October 31, 2011 By ROSEMARY ONUOHA

The National Insurance Commission (NAICOM) has finalised arrangement to collaborate with a German Agency for the purpose of developing micro insurance in Nigeria. The Agency, the Commission said will conduct diagnostic research on modalities of developing Micro Insurance, Agricultural Insurance and Takaful (Islamic) Insurance products in Nigeria Mr. Fola Daniel, Commissioner for Insurance who disclosed this last week while flagging off a two-day Seminar for Insurance Correspondents in Uyo, the Akwa Ibom State Capital noted that the collaboration was part of the commissions drive to open up and develop the insurance market at the grassroots and by extension, increase the sectors contributions to the domestic product (GDP) of the nation. Daniel said that the theme of this years seminar Development of Micro Insurance Market in Nigeria was carefully selected based on the recent developments in the realm of inclusive insurance in the country. He added that development of the micro finance insurance market was one of the market development and restructuring initiatives (MDRI). The development of micro insurance is both the moral economic imperative, not only for promotion inclusive financial systems but also for the equitable mitigation of risks. It is for this reason amongst others, that NAICOM has taken keen interest in not just supporting but promoting its development in Nigeria , Daniel said. He said the Nigerian Oil and Gas Content Development Act 2010 also offer the insurance industry in the country leverage to further expand its market. The commissions quickly took advantage of this law to and develop a guideline for the industry. The guideline gives roadmap on how oil and gas insurance business should be conducted in Nigeria . The oil and gas insurances was rolled out early this year. While it may be too early to adjudge impact of oil and gas insurances on the overall performance of the industry, it has become apparent that we still have yawning capacity gap in that sub-sector, Daniel said. He noted that the realization prompted the inception of an industry committee to explore the possibilities of an oil and gas pool as a pool, adding that the committee is still working and it is hoped that the product of their deliberation will aid the commissions quest for enhanced industry.

Daniel who said the development of Agricultural insurance was another area of concern for the commission noted that although, the Nigerian Agricultural Insurance Corporation (NAIC) seems to have the exclusive right to insure all subsidized agricultural risks in the country by virtue of the act that established it, huge opportunities still exist in the areas of commercial unsubsidized agricultural risks. Daniel said under the relevant law, the commission was prepared to give the necessary support to any underwriter who desirers to underwrite the conventional agricultural insurance. He noted that the imprint of the commissions strive towards growth and development of the industry were now very visible especially in the areas of market development, innovation in product development, war against fake insurers and unethical practices, tough stance on non compliance to policy guidelines and drive to ensure consumer protection. He noted that from early November, will roll out its advertisement campaign to further draw the attention of the public to insurances, warn and educate them about the benefits and consequences of non-compliance. This is preparatory to actual commencement of compulsory insurance in the country, with Ibadan , the Oyo State Capital as the starting point from November 15, 2011, he said

Source: http://jamaica-gleaner.com/gleaner/20111104/business/business91.html

New micro-insurance plan for Haiti

Published: Friday | November 4, 2011

The Barbados-based Caribbean Development Bank (CDB) has signed a grant agreement with the Insurance Catastrophe Risk Organisation SCC (MiCRO) to support a micro-insurance programme for Haiti. MiCRO is a special-purpose company licensed to provide parametric insurance support to Haiti initially, but is to be expanded to include the Caribbean region. CDB is administering the multi-donor trust fund that supports the operations of MiCRO, which is an innovative one-of-a-kind programme that provides parametric insurance to protect microfinance institutions and their microcredit borrowers in Haiti against losses resulting from natural disasters. The initiative was launched in September, following an initial contribution of US$1.5 million by Britain. CDB president Dr Warren Smith, who witnessed the signing, said that the Bank "is very happy to be associated with this venture, since it represents a very good example of innovation in arriving at solutions to the challenges which confront micro-business and solutions to risk". He said that it was particularly significant that the focus of the exercise is Haiti, where there is a proliferation of microenterprises which he regards as "a dynamic force for the future of the country". Parametric insurance is a form of insurance which does not indemnify for pure loss, but upfront agrees to make a payment upon the occurrence of a triggering event, often a catastrophic event which may ordinarily precipitate a loss or series of losses," CDB said in a statement. It said that a model is used to calculate the losses incurred and payout due of the insurance policy. This calculation model aims to closely mirror the actual damage on the ground and enables a much more rapid payment as no loss adjusters are required after the event to assess the actual damage. These policies make postdisaster claims payments in a manner that is fast and transparent to policyholders. "Parametric insurance has been deemed to be an appropriate mechanism for the Haitian environment, since it is predictable and has predetermined payouts being matched to predetermined hazard levels. This makes reinsurance cheaper than traditional indemnity insurance schemes. The risks that are covered via this particular mechanism are earthquakes, hurricanes (wind) and flooding."

The January 2010 earthquake that killed an estimated 300,000 people and destroyed several buildings in Haiti has had a devastating effect on microentrepreneurs who suffered lost assets, suppliers and markets. "The microfinance sector, which provides microloans to stimulate and sustain many of these businesses, also experienced extensive losses. This resulted in increased risk in providing microloans to micro-entrepreneurs," the CDB said. It said that MiCRO was designed with the goal to increase access to insurance for Haiti's micro-entrepreneurs with the aim to help them protect themselves and their livelihoods against the economic impact of severe natural catastrophes. MiCRO currently provides coverage for Fonkoze, which is Haiti's largest microfinance institution with over 50,000 clients. Since its inception, Micro has paid out a total of approximately US$1.3 million for three extreme rainfall events in Haiti. Coverage is expected to grow as more microfinanciers join the programme and other insurance products are developed. Apart from CDB and the UK's Department for International Development, MiCRO's strategic founding partners include the Swiss Agency for Development and Cooperation, Mercy Corps, Fonkoze, Caribbean Risk Managers Limited (CaribRM), Reinsurer Swiss Re, and GC Micro Risk Solutions SM.

Source: http://www.microfinancefocus.com/international-microinsurance-conferencebrazil

International Microinsurance Conference in Brazil

Microfinance Focus, November 4, 2011: Munich Re Foundation in collaboration with the Microinsurance Network will be organizing its 7th International Microinsurance Conference in Rio de Janeiro, Brazil from November 8 to 10, 2011. Over 400 experts from more than 50 countries are expected to gather for the event to discuss challenges and opportunities in microinsurance, while also focusing on lessons learnt and emerging issues. The conference will be supported by the Brazilian Confederation of Insurers (CNseg), the Superintendence of Private Insurance (Susep), GIZ/BMZ and Georgia State University. With 22 sessions and over 70 speakers addressing key questions in the field, the conference represents one of the largest gatherings of microinsurance experts in the world. The issues to be discussed during the conference include an economic analysis of market opportunities and barriers, national and regional strategies for microinsurance development in relation to various parts of the globe, and innovative approaches that improve microinsurance distribution. The conference also marks the occasion when the Brazilian National Congress will vote on a law that will incorporate specific regulation on microinsurance activities to enhance the access to insurance for the low-income population of Brazil. A plenary session will focus on the opportunities and challenges within the microinsurance sector in Brazil, as well as innovative strategies in distribution, the regulatory perspective and lessons learnt. Another session will examine the lessons from a variety of national insurance strategies including cases from the Philippines, Zambia and Colombia. There will be four academic track sessions which will include amongst others, Stefan Dercon, the Development Economist, Professor of Development Economics at Oxford University and former leader of the insurance against poverty programme at World Institute for Development Economics Research.

Source: http://www.deccanherald.com/content/202104/ngo-takes-poor-lic-clients.html

NGO takes poor LIC clients for a ride

T R Sathish Kumar, Mandya, Nov 2, DHNS:

Throws out whistleblower who had been in service for 14 yrs without salary for months

Bangalore-based non-governmental organisation, also a corporate agent for the Life Insurance Corporation (LIC) of India for micro insurance policies, has allegedly misused funds collected from policyholders,causing a lapse of policies and thus denying claims for the kin of the deceased.

Susheela, a whistleblower and a former employee of the organisation Vikasa, said even though she was removed from service in July without payment of salary from March, she had deposited the money collected from the policyholders to the designated accounts of Vikasa in a nationalised bank till August 23, and sent the details of payments. But the organisation has not paid the premium amount to the LIC since 2010, she said. Removed She said she had been with the organisation for over 14 years, but was ill-treated since March even though she worked for four projects NABARD, Santhwana and micro insurance. She said she wrote a letter expressing her displeasure, which the directors considered as resignation and removed her. Susheela has lodged a complaint with the Malavalli town police against director N Prasanna, project director Y S Mahabalesh, and manager Vijendra. The police have submitted a first information report with the JMFC court on October 28. Jeevan Madhura 182 is a micro insurance policy of the LIC launched for the benefit of rural and economically backward people.Those aged between 18 and 60 years are eligible for it. Policy-holders can opt for weekly or monthly payment, which the corporate agent should collect through sub-agents by paying a share in

the commission. The premium amount could be between Rs 100 and Rs 500 a month. Most people prefer a five-year term, while others opt for 10 years. Vikasa has reportedly enrolled nearly 3,200 policy-holders - in Maddur, Channapatna, Ilkal (Bagalkot district), Turuvekere, Banasandra (both in Tumkur district) and Anekal (Bangalore) - including 850 people in Malavalli taluk. Gowramma, another employee, said she did not know about the commission till an accomplice, an employee of another NGO, told her about it just a few days ago. I worked for a meagre salary all these years for not less than four projects at a time without any knowledge of my rights, she added. M V Shylashri, nominee for the late Venkategowda of Malavalli town and a resident of Dasanadoddi, said her father died in February and he had paid the premium till December 2010. But she did not get any claim. I do not know what to do... I know Gowramma and she has collected the premium from my father. I depend on her for a solution, she added. Rachaiah, nominee and husband of P Sarojamma of Pandithalli who died only last month, said he had two sons to look after and that he had incurred some expenses on his wifes treatment before her death. I have borrowed some money... if I get the claim, it would help me to a great extent, he said. Technical problem N Prasanna, Director of Vikasa, admitted that the amount collected could not be deposited with the LIC due to some technical problem with the software of the insurance firm for some time. But he alleged it was the handiwork of his former employees in Malavalli. He said his squad had reported that the coordinators were extracting additional fees from policy-holders and subscribers to micro finance. So I expelled them. Now, they are doing this to defame our organisation, Prasanna said. Y S Mahabalesh, project director, said: Out of the five claims in question at Malavalli, almost four can be settled. The rest can also be claimed if the former employees co-operate. However, Basavaraju of Gajanur has given an oral statement to the Malavalli town police about the former employees demanding money for settlement of a claim he got recently. But he admitted that there was no registered complaint in this regard.

A senior officer of the LIC said that if the policy had lapsed due to non-payment of premium, claims have to be settled differently. Approach LIC The nominees have to approach the LIC and find out whether they are eligible for a claim, he said. He also said Vikasa had paid some money in two instalments to the LIC, but the particulars of the policy-holders were yet to be furnished. He said Vikasas claim that the premiums could not be paid owing to a software problem was false.

Source: http://business.myjoyonline.com/pages/news/201111/75881.php

BoG to help develop insurance scheme for 'susu' collectors

From: Ghana | Daily Graphic Last Updated: November 3, 2011, 10:24 am

The Bank of Ghana (BoG) is in talks with members of the Ghana Co-operative Susu Collectors Association (GCSCA), the umbrella body of 'susu' collectors, to develop an insurance scheme for clients of susu businesses throughout the country. The move, according to the Central Bank, forms part of regulatory mechanisms being devised for the group and the countrys micro-finance sector in general. The Head of Banking Supervision Department (BSD) at the Central Bank, Mr Franklin Bengle, who made this known to the Daily Graphic, explained that the mechanism was to help insulate clients of the 'susu' service against risks of losing their money to unscrupulous collectors. We are in talks with the GCSCA to set up an insurance fund for their members so that if people lose their money through this business (the 'susu' collection), then the victims can easily be catered for by funds from the insurance fund, Mr Bengle added. The said insurance scheme would thus provide claims for 'susu' contributors who fell victim to fraudulent collectors. The successful implementation of the fund could possibly endear the 'susu' business to many individuals and business institutions in the country by helping to erase the present fear among many people that a collector may run away with their collections. Mr Bengle, however, noted that the Central Bank was not comfortable with allowing the collectors to give out loans to interested clients because they do not have liquidity ratios. Liquidity ration is the amount of money held by a financial institution, in most cases a bank, as a proportion to its deposits and is normally measured by the extent to which the said institution or another entity can quickly liquidate assets to cover short-term liabilities. You know these collectors don't have a liquidity ratio that they can easily fall on to defray their debts, the head of BSD at the central bank said, adding that the bank was thinking of allowing them to do concessionary lending by using the GCSCA as an institution to secure funds from other bigger financial service providers. And when that happens, GCSCA will guarantee for those funds and then

monitor the disbursements, usage and retrieval of those funds, he noted. On regulations for the micro finance sector so far, Mr Bengle said the bank had started receiving some applications from some of the institutions that were given the six-month period to re-register or cease operations. He said BoG was trying to encourage self regulation of these institutions, explaining that although the bank would at the end act as the overseeing body of these institutions, the BoG was trying to get the umbrella bodies to enforce these regulations among their respective members. We want to get the umbrella bodies of these microfinance institutions to self regulate themselves. We want to put some peer pressure on them to make sure that their members do not go contrary to the guidelines of the bank. With this, the BoG can now also extend its influence as the overall regulator of the entire process, Mr Bengle added.

Source: http://www.caribbeanpressreleases.com/articles/8832/1/CDB-amp-MiCRO-SignAgreement-to-Establish-Micro-Insurance-Facility-for-Haiti/Page1.html

CDB & MiCRO Sign Agreement to Establish MicroInsurance Facility for Haiti
By S Coward Published 01-Nov-11

Bridgetown - Noc. 1, 2011 - The Caribbean Development Bank (CDB) and Micro Insurance Catastrophe Risk Organisation SCC (MiCRO) have signed a grant agreement supporting a catastrophe micro-insurance programme for Haiti. CDB is administering the multi-donor trust fund that supports the operations of MiCRO, which is an innovative one-of-a-kind programme that provides parametric insurance to protect microfinance institutions and their micro-credit borrowers in Haiti against losses resulting from natural disasters. This initiative was launched on September 28, 2011, following an initial contribution of US$1.5 million by the UK Governments Department for International Development (DFID). Parametric insurance is a form of insurance which does not indemnify for pure loss, but upfront agrees to make a payment upon the occurrence of a triggering event, often a catastrophic event which may ordinarily precipitate a loss or series of losses. A model is used to calculate the losses incurred and payout due of the insurance policy. This calculation model aims to closely mirror the actual damage on the ground and enables a much more rapid payment as no loss adjusters are required after the event to assess the actual damage. These policies make postdisaster claims payments in a manner that is fast and transparent to policy holders. Parametric insurance has been deemed to be an appropriate mechanism for the Haitian environment, since it is predictable and has pre-determined payouts being matched to pre-determined hazard levels. This makes reinsurance cheaper than traditional indemnity insurance schemes. The risks that are covered via this particular mechanism are earthquakes, hurricanes (wind) and flooding. The 2010 earthquake in Haiti had a devastating effect on micro-entrepreneurs who suffered lost assets, suppliers and markets. The microfinance sector, which provides micro-loans to stimulate and sustain many of these businesses, also experienced extensive losses. This resulted in increased risk in providing microloans to micro-entrepreneurs. MiCRO was designed with the goal to increase access to insurance for Haiti's micro-entrepreneurs with the aim to help them protect themselves and their livelihoods against the economic impact of severe natural catastrophes. MiCRO is a special purpose Barbados segregated cell company licensed to carry on

exempt insurance business. It will provide parametric insurance support to Haiti initially, but is to be expanded to include the Caribbean region. MiCRO currently provides coverage for Fonkoze, which is Haitis largest microfinance institution (MFI) with over 50,000 clients. Since its inception, Micro has paid out a total of approximately US$1.3million for three extreme rainfall events in Haiti. Coverage is expected to grow as more MFIs join the programme and other insurance products are developed. Apart from CDB and the UK Governments Department for International Development (DFID), MiCROs strategic founding partners include the Swiss Agency for Development and Cooperation, Mercy Corps, Fonkoze, Caribbean Risk Managers Limited (CaribRM), Reinsurer Swiss Re, and GC Micro Risk Solutions SM. CDBs acting Vice-President (Operations), Mrs. Tessa Williams-Robertson, signed the grant agreement on behalf of the Bank, while Mr. Nicholas Crichlow, signed on behalf of the Secretary of MiCRO. CDB President, Dr. Warren Smith, who witnessed the signing, said that the Bank is very happy to be associated with this venture, since it represents a very good example of innovation in arriving at solutions to the challenges which confront micro-business and solutions to risk. Dr. Smith added that it was particularly significant that the focus of the exercise is Haiti where there is a proliferation of micro-enterprises which he regards as a dynamic force for the future of the country.

Source: http://www.microcapital.org/microcapital-brief-microfinance-bank-compartamosof-mexico-seeking-acquisitions-in-microinsurance-mobile-banking-arenas/

Friday, November 4, 2011

MICROCAPITAL BRIEF: Microfinance Bank Compartamos of Mexico Seeking Acquisitions in Microinsurance, Mobile Banking Arenas
Mr Fernando Alvarez Toca, chief executive officer of the Mexican microfinance bank Compartamos Banco, reportedly has said that the bank is seeking to venture into alternative products such as microinsurance and mobile banking during 2012 either through acquisitions in different countries or through organic growth [1]. As reported by MicroCapital in a story dated July 25, Compartamos acquired Peruvian microfinance institution Financiera Crditos Arequipa SA (Financiera Crear) and is also looking to expand in Latin American countries such as Columbia and Brazil through additional acquisitions. Mr Toca declined to name potential acquisition targets. As of March 31, 2011, Compartamos reported total assets of MXN 12 billion (USD 1 billion), a total loan portfolio of MXN 10.7 billion (USD 920 million), return on assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent and approximately 2 million borrowers. By Nisha Koul, Research Associate About Compartamos Banco: Compartamos Banco is a microfinance bank based in Mexico that was founded in 1990. It offers group and individual loans in rural and urban areas. Compartamos Banco provides loans to low-income people for business and home improvement purposes. It also offers voluntary savings and insurance products. The company made its initial public offering (IPO) in 2007 on the New York and Mexican stock exchanges in a transaction worth USD 467 million and, as of March 31, 2011, reported total assets of MXN 12 billion (USD 1 billion), a total loan portfolio of MXN 10.7 billion (USD 920 million), return on assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent and approximately 2 million borrowers.

Source: http://www.microcapital.org/microfinance-event-papers-panel-proposalssolicited-for-2012-research-conference-on-microinsurance-enschede-the-netherlandsapril-11-%E2%80%93-13-2012/ Friday, November 4, 2011

MICROFINANCE EVENT: Papers, Panel Proposals Solicited for 2012 Research Conference on Microinsurance, Enschede, the Netherlands, April 11 13, 2012
Event Name: 2012 Research Conference on Microinsurance Event Date: April 11 April 13, 2012 Event Location: Enschede, the Netherlands See Our Comprehensive Event Calendar at: http://microfinanceassociation.ning.com/events Cost: Early registration, through December 20, 2011: EUR 155 (USD 212) Regular registration, December 21, 2011 January 30, 2012: EUR 180 (USD 247) Late registration, January 31, 2012 March 18, 2012: EUR 230 (USD 315) Undergraduate Students: EUR 50 (USD 69) Summary of Event: The objective of this conference is to assess the state of microinsurance research and provide a platform for creating a dialogue between researchers from different geographical regions and disciplines. Organizers of this event are inviting papers and panel proposals for the conference. Papers may have a theoretical or empirical focus and may cover topics such as impact, demand, product design, business process and institutional aspects. Panel proposals are to be submitted by December 5, 2011. Applications for scholarships and paper abstracts are to be submitted by December 20, 2011. Acceptance notification will be given by January 22, 2012. The deadline for full paper submission is March 18, 2012. Event Website: http://www.utwente.nl/igs/2012%20Research%20Conference %20on%20Microinsurance/ For additional information, you may contact Marcia Clifford via e-mail at m.f.clifford@utwente.nl or telephone at +31 53 48 93 423. Submit Your Event: http://microfinanceassociation.ning.com/events By Ashim Kar, Research Associate Sources and Additional Resources:

Call for papers and panels: 2012 Research Conference on Microinsurance, http://www.microinsurancenetwork.org/networknew-718.php#commentaire MicroCapital.org story, November 1, 2011, MICROFINANCE EVENT: Second Annual Microinsurance Conference from the Institute for International Research (IIR), Johannesburg, South Africa, February 20 22, 2012, http://www.microcapital.org/microfinance-event-second-annual-microinsuranceconference-from-the-institute-for-international-research-iir-johannesburg-southafrica-february-20-%E2%80%93-22-2012-3/ MicroCapital.org story, January 19, 2010, MICROCAPITAL EVENT: Sixth Annual Microinsurance Conference, Manila, Philippines, November 9-11, 2010, http://www.microcapital.org/microcapital-event-sixth-annual-microinsuranceconference-manila-phillippines-november-9-11-2010/ Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

Source: http://www.microfinancefocus.com/microfinance-meets-micro-healthcare

Microfinance meets Micro Healthcare

Microfinance Focus, August 24, 2011: In an attempt to provide affordable micro health program to the underserved sections of the society, Mysore (Karnataka, India) based healthcare consultancy and service provider Suddanand Healthcare has developed a symbiotic relationship with microfinance institutions in Karnataka. Utilizing the existing customer base infrastructure of MFIs in the state, Suddanand Healthcare program is ensuring higher efficiency, standardization of charges, greater awareness and penetration of health care to a larger section of people. Suddanand is a non-governmental organization (NGO) and offers a noncommercial micro health program. An individual has to pay Rs. 160 to become a member. With this membership, he/she can claim up to Rs. 5000. The membership card can be used at certain hospitals to receive outpatient services at Rs. 10 and inpatient treatment at fixed costs arranged by Suddanand Healthcare with the hospitals. Suddanand Healthcare coordinates between MFIs and network hospitals for fixing standard rates for medical expenses. It also appoints and provides claim forms to network hospitals near the villages. Further, it provides license to treat patients under cashless scheme to the hospitals. There are other value-added services such as arranging ambulance services, guiding members for special consultation, providing information about 24-hour help lines, health facilities, bed availabilities, organization of lifestyle and other well-being programs. Through these comprehensive services, Suddanand Healthcare is able to provide affordable health care to the poor. Suddanand Healthcare has an affordable outpatient cost of just Rs. 10. It has the license to get patients treated under cashless scheme in the concerned

hospitals. There is a hand held system in place and when the patient goes to the hospital, there will be a Suddanand helper at the hospital to help the patient. Suddanand uses web-based software to maintain claim settlements. Lastly, Suddanand micro health care program ties up with MFIs, to use their customer database to educate and reach out to the poor. The Healthcares model is a self-sustaining in the sense that it does not need external funding. Its members contributions are able to sustain the program. In an interview with Microfinance Focus, Dr. Arjun Sachidanand, Managing Director of Suddanand Healthcare, felt that there was a grave need for a healthcare program in India for its large number of the poor. He realized that 70% of emergency loans of MFIs taken by the poor were for health purposes. Considering the nature of health emergencies and the urgency of the situations, the poor are vulnerable to exploitation by moneylenders. He also realized that insurance companies did not want to cover the rural poor. The vast majority of the country suffers from a poor standard of healthcare infrastructure that has not kept up with the growing economy. The incident that inspired Dr. Sachidanand to start up a micro health program was the case of a 6 year old girl who had come into the hospital and 6 months ago she died. She had fever and was given consultation as well as a prescription for medication. However, she had not purchased the medicines due to financial constraints. So, her family decided to take her to a quack, which would be cheaper. The quack had given her steroids that caused her illness to spiral into Meningitis. Unfortunately, the girl passed away 6 months later. Being a witness to this incident, Dr. Sachidanand decided that such a scenario should not repeat any more. He thus decided to start a micro health program that made affordable healthcare services available to the poor. With his micro health program, his main goal is that nobody will be denied treatment for lack of money. Dr. Sachidanand shares some of the challenges that he faced in implementing the program. One of them was about ensuring cooperation of the doctors in the hospitals with the program and providing the right and necessary treatment at the appropriate cost. In order to stem out fraud, Suddanand has its own medical personnel to verify the authenticity of the claims. Another challenge Dr. Sachidanand discussed was geography. Many villages are located far away from the hospitals. However, Dr. Sachidanand has ensured that the network hospitals are no farther than 20km from the villages. Looking optimistically towards the future, Suddanand is launching its third phase of registration and is hoping to reach out to 100 thousand poor. So also, Suddanand is hoping to scale up its scope aiming to operate in more districts in the state as well as to venture into other Indian states such as Maharashtra and Tamil Nadu.

Source: http://rapidnewsnetwork.com/insurance-multi-line-updates-unam-ffg-eihi/5614/

Insurance Multi Line Updates: UNAM, FFG, EIHI

Contributed by admin on Nov. 7 at 12:01 p.m.

Insurance Multi Line Updates: UNAM, FFG, EIHI Unico American Corporation (Public, NASDAQ:UNAM). Last Market Price: $11.29, Change , % Change . Shares trade in the range of $- $ dollars. It has a market capitalization of 60.23M dollars,making it a Micro Cap Stock and has 5.34M outstanding shares. The company has a beta of 0.49, indicating, the stock to be less volatile than the market. As per the most recent quarterly report, the current earnings per share (EPS) is 0.60. It operates in the Financial sector and belongs to the Insurance (Prop. and Casualty) industry. The company has a 52 week high of $12.10 and a 52 week low of $8.57. The average shares traded over the past 30 days is 3,202.00, while the volume from the current trading session was at 0.00. FBL Financial Group (Public, NYSE:FFG). Last Market Price: $32.29, Change , % Change . Shares trade in the range of $31.30 $32.48 dollars. It has a market capitalization of 1.01B dollars,making it a Mid Cap Stock and has 31.22M outstanding shares. The company has a beta of 2.43, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the current earnings per share (EPS) is 4.65. It operates in the Financial sector and belongs to the Insurance (Life) industry. The company has a 52 week high of $35.00 and a 52 week low of $24.50. The average shares traded over the past 30 days is 67,172.00, while the volume from the current trading session was at 63,584.00 which is 0.95 times the average volume. Eastern Insurance Holdings Inc (Public, NASDAQ:EIHI). Last Market Price: $13.18, Change -0.17, % Change (-1.27%). Shares trade in the range of $13.17 $13.25 dollars. It has a market capitalization of 107.15M dollars,making it a Micro Cap Stock and has 8.13M outstanding shares. The company has a beta of 0.90, indicating, the stock to be less volatile than the market. As per the most recent quarterly report, the current earnings per share (EPS) is 0.63. It operates in the Financial sector and belongs to the Insurance (Life) industry. The company has a 52 week high of $14.15 and a 52 week low of $10.95. The average shares traded over the past 30 days is 4,244.00, while the volume from the current trading session was at 3,588.00 which is 0.85 times the average volume.

Source: http://www.bnamericas.com/news/insurance/microinsurance-clients-to-reachalmost-100mn-in-20-years-study

Microinsurance clients to reach almost 100mn in 20 years - study - Brazil

Published: Wednesday, November 9, 2011 17:49 (GMT -0400)

Microinsurance customers in Brazil will touch close to 100mn over the next 20 years, from the current 23mn-33mn estimate, according to a study published by the nonprofit think tank Centre for Financial Regulation and Inclusion (Cenfri). Cenfri published the report during the seventh International Microinsurance Conference, taking place in Rio de Janeiro from November 8-10. The conference also marks the occasion when Brazil's congress will vote on a law that will incorporate specific regulation on microinsurance activities to enhance access to insurance for the country's low-income population. Local insurance confederation CNSeg is projecting that the current premium percentage of GDP will increase to 7.5% in 2017 from 3.5% currently, with the implementation of this new regulation.

Source: http://www.malaya.com.ph/nov10/busi3.html

Manulife eyes micro insurance

BY Angela Lorraine Celis

AFTER the Insurance Commission approves its proposal, Manulife Philippines, an American firm, will start selling what it calls micro insurance specifically for the low income group. The proposed product will have life cover value ranging from P10,000 to P20,000, according to Indren Naidoo, president and chief executive of Manulife. He declined to specify the premium rate but declared that the cover is valid for as short as a month to three months. As is the practice, the insured is paid double the value of the cover if he dies in an accident. "Were hoping to get approval from the regulator this month," Indren Naidoo said. "After we get the approval, we will sign up our first contract in Davao. We want to keep our promise that we will sign up our first client before the year is out," Naidoo said. Naidoo added Manulife expects to penetrate the market that rarely has access to insurance products. Based on government data, the penetration rate for life insurance in the Philippines was only 13 percent as of 2010. "Part of our overall obligation is to expand life insurance for the less fortunate," Naidoo said. The initial targets of the companys micro insurance product are Cebu and Davao. Eventually, Manulife will move to other areas. Naidoo also announced yesterday that as of end-September, Manulife Philippines total premiums had grown around 20 percent. "The reason for our success is really the expansion of our agency network, particularly in Davao, Cebu, Baguio, and more recently in Iligan and in Quezon City," Naidoo said. "Were really happy that were a large sales force of 3,000 agents, growing around 31 percent over the same period last year. That shows that our expansion strategy is working," he explained. Manulife Philippines total new business for the first nine months of 2011 was 54 percent higher than for the same period last year. "Were very happy with that, particularly when you look at the half year, when the market was growing only 29 percent. So were extremely happy with the way were growing," Naidoo said.

Source: http://www.reuters.com/article/2011/11/10/leapfrog-indonesia-insuranceidUSL4E7M91NH20111110

US fund LeapFrog eyes Indonesia, Philippine insurance firms

By Andjarsari Paramaditha

JAKARTA | Thu Nov 10, 2011 6:43am EST Nov 10 (Reuters) - LeapFrog Investments, a U.S. fund focused on insurancerelated firms, is looking to buy minority stakes in companies in Indonesia and the Philippines next year to tap markets it sees as under-penetrated, its founder told Reuters on Thursday. The U.S. fund, founded in 2008 with $135 million of capital, was launched to look for ways to capitalise on the micro-insurance sector in Asia and Africa where a vast low to middle income population still lives without any insurance. "Both region's economies are rising, and valuations are still relatively reasonable," said Andrew Kuper, LeapFrog's founder and president, in a telephone interview from Sydney. He said the fund was looking into the historical performance of the micro credit industry, and both the Philipines and Indonesia scored well. Kuper, a South African, said that he expected the fund will close a deal to buy a Philippine insurance-related firm early next year, while it has up to $20 million for a potential deal in Indonesia in 2012 as well. LeapFrog has also discussed with local investors the possibility of a joint bid to buy an Indonesian target to enter Southeast Asia's biggest economy, he said. BNI Life, a life insurance unit of Bank Negara Indonesia , is looking for strategic partners, while bankers say Panin Life, a unit of Panin Insurance, is also looking to sell a significant minority stake to a potential partner. In April, Japan's largest property and casualty insurer MS&AD paid over $800 million to acquire a 50 percent stake in the life insurance unit of Indonesian conglomerate Sinar Mas, one of an increasing number of acquisition deals by foreign players in the Indonesian financial industry this year. However, Kuper pointed out that language barriers, regulations and incentives for international investors, and the challenge of dealing with corruption, were key challenges to invest in the region.

"It needs a sustained effort going forward," he said. The fund, with offices from Sydney to Edinburgh, is backed by billionaire George Soros and e-bay founder Pierre Omidyar, as well as a consortium of commercial and development banks, pension funds and reinsurers -- including JP Morgan, Scor and Flagstone Re. LeapFrog has made three investments so far, including $7 million in South Africa's AllLife in 2009, $14 million in micro insurer Apollo Investment in Kenya this year and $15 million in India's Shriram Group financial services business in September 2011. (Writing by Janeman Latul; Editing by Neil Chatterjee)