Donors and Microinsurance

This study examines the involvement of donor organizations in microinsurance by analyzing their motivations, strategic directions, and determining factors. The role of donors in the development of microinsurance has been crucial from the very beginning. Donors have always been one of the most important stakeholders and continue to play a vital role in furthering the understanding of what is required to promote effective microinsurance services. The study is part of Microinsurance Networks efforts to disseminate lessons learned and good practices in microinsurance. Twenty-two donor organizations participated in the study. Conclusions include:

• Donor involvement in microinsurance is relatively new and began in the 1990s;
• Donors are motivated to get involved in microinsurance because of their focus on poverty alleviation and financial inclusion;
• Microinsurance activities within donor organizations are usually incorporated into their microfinance departments or financial sector development departments;
• Most donor organisations have in-house expertise in microinsurance, primarily in field activities and in the areas of policy, legislation, and supervision;
• Donor involvement in microinsurance has increased over the years in all areas and this trend is expected to continue in the years to come;
• Donors prioritize microinsurance interventions in Africa and Latin America and mostly stick to their institutional geographic mandate;
• Donors adapt and follow new trends in microinsurance.

The study highlights the need for donors to collaborate with other donors to share lessons learnt and to maximise effectiveness. A few examples of donor collaborations are also included in the study to illustrate current activities.