Is there a Business Case for Microinsurance?

This paper reviews literature and presentations on microinsurance to determine whether there is a business case for microinsurance. It examines whether investment of capital and other resources in microfinance can be justified over time.

The paper discusses the potential for scaling up microinsurance and analyzes factors sustaining investors interest in the market. It lists key issues influencing the business case for microfinance. Findings include:

• Traditional business processes cannot be imposed on microinsurance;
• Microinsurance at enterprise level may take longer than expected to achieve scale;
• Successful business cases for microinsurance requires a supportive regulatory
  environment;
• Financial metrics and quantitative analysis are lacking at enterprise and industry levels;
• Outcomes of alternative distribution channels are not well-documented;
• Research does not address competition in the microinsurance industry and balancing of social and business goals.

The paper states that a combination of quantitative and qualitative measures should be used to assess the business case for microinsurance.