Report of the Workshop HIV/AIDS and Microinsurance in the Microfinance Sector in Africa

Publication Date: Apr 2005
Published by: AFMIN & HIVOS
Document Type: Conference Report (PDF)

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Can insurance help improve the bleak scenario of HIV/AIDS?

This paper presents the points discussed at the workshop - “HIV/AIDS and Microinsurance in the microfinance sector in Africa” - wherein microfinance and microinsurance experts shared experiences on strategies developed to reduce the effects of HIV/AIDS on their clients.

The workshop distinguished different categories of strategies for microfinancial institutions (MFIs) and microinsurance companies (MICs) to deal with HIV/AIDS:

• Prevention strategies;
• Product adjustments;
• Introduction of :
  • New products other than insurance,
  • Insurance services.

The participants opined that:

• The market potential for insurance is huge, but the product is difficult to sell;
• Demand for health insurance is the highest;
• Basic premium components are risk premium, operational costs, profit margin, and investment income;
• Training the staff in MFIs is a precondition for the insurance product to be promoted to clients;
• Simple products and accessible information is essential;
• Trust with insurance companies has to be built;
• Regulation of micro insurance is essential;
• Networks of MFIs play a crucial role in the effective implementation of strategies to deal with HIV/AIDS.

The participants discussed:

• The reasons for MFIs to offer insurance;
• Different kinds of insurance and their relevance for the poor;
• Different models of insurance, like the partner-agent model, community-based model;
• The lessons learned.

The workshop concluded that fighting HIV/AIDS demands consorted efforts from different organizations, such as MFI networks, HIV/AIDS organizations, insurance companies, health service provider, technical assistance providers, etc.