Developing an insurance market, one step at a time
A systematic, step-wise approach that involves the participation of key stakeholders can accelerate development of insurance markets, as witnessed in Zambia.
In 2010, the International Labour Organization, United Nations Capital Development Fund, and FinMark Trust began supporting microinsurance market development in Zambia by commissioning a diagnostic review (conducted by Cenfri on behalf of the Access to Insurance Initiative), of the regulations the supply of insurance to low-income households, and the demand. The findings were presented to the Insurance Supervisor and key stakeholders including industry representatives, potential distribution channels, consumer advocates and donors. A task force created a microinsurance roadmap based on the challenges and opportunities identified in the report. The roadmap was backed by the industry and provided a framework for donor and government coordination.
The task force oversaw interventions to create an enabling environment, build the capacity of insurers, facilitate relationships with distribution channels, and educate consumers. A Microinsurance Acceleration Facility was established to provide grants to insurance companies for product development. A capacity building plan included innovation seminars and trainings on managing partnerships and business planning.
These efforts led to the launch of five new life microinsurance products in the market that cover 220,000 people, and are growing quickly. The next step will be to support the development of more diverse products and to run education campaigns for distribution channels and clients.
To learn more about the achievements in Zambia, join us for a joint webinar with the Access to Insurance Initiative on "Building an inclusive insurance market". Click here to register.