Providing Insurance of Real Value to the Poor (Microinsurance in Focus No. 12)

Publication Date: Mar 2008
Published by: CGAP Working Group on Microinsurance
Document Type: Other (PDF)

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Making a case for group micro-insurance

This note argues that the promotion and dissemination of microinsurance of real value to the poor requires donors and microinsurance providers to think of new approaches. The note includes case studies of microinsurance products that do not provide real value to the poor as well as studies of products that do.

The note establishes criteria for “real value” that include meeting real risks of low-income households, premium payments that match policyholders’ cash flows, non-deceptive coverage, simple procedures, low expenses and modest profits to the insurer.

The note recommends group insurance products developed in collaboration with the poor.