Sector Based Approach: Promoting Insurance for Low-Income People in Zambia

This focus note provides an overview of some of the experiences, outcomes, and lessons learned in implementing a sector-based approach to promote microinsurance in Zambia. It suggests that engaging closely with relevant stakeholders, investing in market understanding, having a road map and dedicated funding, having technical support, and measuring results are all success factors that can contribute to positive results. The paper also states that developing a market requires long-term focus and investment to ensure that any positive developments can be sustained well beyond the period that support is provided. Key lessons highlighted in the note include:

• Design of appropriate market facilitation interventions requires an in-depth understanding of the sector and appreciation of the root causes of the underlying constraints;
• Multi-stakeholder involvement helps to promote a holistic approach that is locally owned and has corporate buy-in within the sector;
• Road maps are essential for designing, guiding, and monitoring the implementation of agreed interventions that aim to achieve a vibrant and sustainable microinsurance market;
• Road maps should allow for flexibility and responsiveness to market changes and emerging challenges;
• Outcomes can guide the future direction of a sector-based approach as well as contribute to emerging best practices more broadly.