Microinsurance: Improving Risk Management for the Poor, No. 11 (Spanish)

Publication Date: Nov 2006
Published by: CGAP Working Group on Microinsurance
Document Type: Newsletter (PDF)

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Newsletter focusing on insurance models for rural microfinance clients

This newsletter focuses on insurance models for rural microfinance clients. The newsletter contains the following main articles:

Subsidized reinsurance as an option for Micro Health Insurance Units (MIUs), by David M. Dror states that:

• MIUs have two options to have enough capital to remain sustainable: reinsurance and government support;
• Reinsurance is the least costly and most efficient form of support to MIUs;
• Governments should establish and operate social reinsurance for the health risk that the MIUs cover;
• MIUs represents an opportunity for governments to extend health insurance among excluded population segments.

The role of reinsurance, by Denis Garand states that:

• Reinsurance and subsidies should not mingle, and the health insurance management should focus on the efficient delivery of health care;
• Reinsurance may prevent the insuring organizations from achieving the discipline required to achieve viability;
• The purposes of reinsurance are to cover catastrophes, to receive technical expertise and as capital surplus;
• Reinsurance is the most expensive form of raising capital;
• It can be a valuable tool of microinsurance development if used appropriately;
• Permanent subsidies for micro-insurers may be detrimental to the development of long-term sustainability.

The newsletter also contains:

• A case study of “Yasiru Partnership in Sri Lanka”;
• An article on micro-insurance;
• Information about an insurance product in West Africa;
• Information of latest publications, conferences and training.

The newsletter is available in English, French.