Microinsurance: Improving Risk Management for the Poor, No. 9

Publication Date: Mar 2006
Published by: CGAP Working Group on Microinsurance
Document Type: Newsletter (PDF)

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Why is regulation of micro-insurance necessary, yet difficult?

This issue of “MICROINSURANCE” explores the following themes:

Health Micro-Insurance Schemes: The Importance of Conducting a Feasibility Study argues that the fragility and limited financial safeguards of health micro-insurance schemes call for a feasibility study that would involve:

• Defining the benefit plans;
• Calculating premiums;
• Selecting partner health care providers and developing agreements with them;
• Defining the scheme’s organization and methods of operation.

Insurance Regulators Cooperate with CGAP on Future Micro-Insurance Regulation identifies regulation and supervision of micro-insurance as a key factor for the future growth and success of micro-insurance activities. The article:

• Discusses the cooperation between the International Association of Insurance Supervisors (IAIS) and the Consultative Group to Assist the Poor (CGAP) in the area of regulation of health micro-insurance.
• The challenge that micro-insurance poses for supervisory authorities.

Yeshasvini Trust’s Health Insurance profiles the success of the Yeshaswini Cooperative Farmer’s Health Scheme in Karnataka, India, and identifies the following reasons for it:

• A tight partnership with the cooperative sector;
• Effective political interference;
• The good reputation of the hospitals involved in the tie-up;
• Regular contact between cooperative societies and their members;
• Outsourcing of the scheme’s administration.

The issue also contains:

• A glossary of selected terms;
• Information about: IAIS, latest publications, case studies of good and bad practices, articles and websites, and conferences and training.

The newsletter is available in Frenchy, Spanish.