Microinsurance Network pushes potential for small insurance
Microinsurance Network chairman Craig Churchill says microinsurance represents a huge untapped market area for insurers to help with developing countries Reuters reports.
"It is a new field and we are still figuring things out, but experience shows that where insurers create efficient low cost distribution systems and offer appropriate products for low income individuals, the business can be viable," he said.
The Microinsurance Network, launched last week, is a group of donor organisations, multilateral agencies, social protection providers, policymakers and insurance companie. It includes Zurich, Munich Re, Allianz and the International Association of Insurance Supervisors.
Global need
"In the short term, there is a huge need for this kind of product on a global scale -- to protect against climate change, energy, food and water shortages," said Luke Savage, Lloyd's director of finance, risk management and operations.
"Whilst currently involvement in microinsurance may be seen as more of a moral obligation than commercial opportunity, over time, the product will develop into a commercial opportunity. It is not seen as a charity."
