Making Insurance Work for Microfinance Institutions

Publication Date: 2003
Published by: ILO (International Labor Organization)--Social Finance Unit
Document Type: Paper

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A technical guide to developing and delivering microinsurance

This how-to manual guides managers of microfinance institutions (MFIs) through the complexities of offering basic insurance products, either on their own or in partnership with an insurance company. It is written for senior managers and directors of MFIs that offer insurance or are planning to do so, this manual helps readers to determine whether it is appropriate to offer insurance, which type of insurance product(s) to offer, and through what institutional structure.

The bulk of this manual is dedicated to four aspects:

1. The fundamentals of the insurance business, including benefit design, insurance terms, pricing and controls;

2. The design of five basic, short-term, credit-linked Insurance policies, both mandatory and voluntary;

3. Outsourcing part or most of the insurance responsibilities to a formal insurance company or to skilled consultants;

4. The financial management and operational integration of an insurance business into a microfinance institutions.

[adapted from authors]