Microinsurance Business Models
This paper reviews the institutional models that offer insurance services to the poor. It discusses their organizational characteristics, coverage by region and product type, and comparative advantages and limitations.
The paper describes the roles of various players in the micro insurance supply chain such as insurance regulators, risk carriers, administrators, delivery channels, technology platforms, support institutions and health care providers. It discusses the key characteristics of different models of microinsurance risk carriers, namely,
- Commercial insurers;
- Cooperatives and mutual insurers;
- Community-based schemes.
The paper states that an ideal microinsurance market includes different models that collectively meet the demands of all population segments. Creating such a market entails building the capacity of community-based organizations, offering them technical support and regulatory oversight and working with commercial and cooperative insurers to customize products for the poor.
