Microinsurance Innovation facility is celebrating 5 years!

In 2013, the Facility is celebrating five years of pushing the innovation frontiers with a campaign to showcase lessons learned on how to make microinsurance work for both providers and clients.

Housed at the International Labour Organization's Social Finance Programme, the Microinsurance Innovation Facility seeks to increase the availability of quality insurance for the developing world's low-income families to help them guard against risk and overcome poverty. The Facility was launched in 2008 with support from the Bill & Melinda Gates Foundation to learn and promote how to extend better insurance to the working poor. Additional funding has gratefully been received from several donors, including the Z Zurich Foundation and AusAID.

The primary objective of the Facility is to increase the availability of better insurance products for a greater number of low-income households. To do so:

  • They provide grants to institutions to devise and test innovative approaches to providing better insurance products to the low-income market in developing countries;
  • They support the development of capacity amongst providers and encourage the demand for capacity building;
  • They support research on assessing the impact of microinsurance on low income policyholders, on identifying successful business models and on finding out good practices within the sector;
  • They collect and analyze information, repackage it into various formats and disseminate most relevant lessons learned to key stakeholders.

Over the last five years the ILO’s Microinsurance Innovation Facility has tackled this double challenge head on. It has supported innovations at over 60 partner organizations in Africa, the Middle East, Asia, Latin America and the Caribbean, and fed the lessons from these experiences to the industry.

Microinsurance has grown dramatically to almost half a billion today, and the Microinsurance Innovation Facility has been at the forefront of developments in the industry:

  • Technology has driven efficiency and allowed microinsurance to reach ever-growing numbers of clients;
  • Products are becoming increasingly varied and valuable for low-income households;
  • From governments to retailers, NGOs to insurance companies, an increasingly wide range of players is coming together to build markets for microinsurance.

Sources : CGAP, ILO