Lessons Learned and Recommendations for Donors Supporting Microinsurance

This note offers operational guidelines for donors who want to enter or get more deeply involved in the microinsurance sector. It analyzes the microinsurance market at the client, micro, meso and macro levels, and offers recommendations to increase donor effectiveness. A handful of donors have been at the forefront of microinsurance, implementing programs, documenting lessons, and developing tools for more effective donor involvement. They can help generate knowledge, strengthen the capacity of actors within the microinsurance supply chain, serve as neutral brokers and advocates, and set a pro-poor policy agenda. Donors need to consider the total insurance market when designing their interventions, while remaining client-centered. They should:

• Gather information about potential clients' needs and develop appropriate products;
• Ensure that clients are informed about microinsurance benefits;
• Help upgrade capacity of competent providers and alternative delivery channels;
• Improve availability of quality information and technical assistance, help create transparency and increase access to reinsurance facilities;
• Build policymakers' and regulators' capacity, and advocate for inclusive markets and appropriate legal frameworks.

Finally, donors should evaluate their own internal capabilities and comparative advantages before deciding whether and how to support microinsurance.