Publications

2011

  1. Rural Development Tools - Value-Chain Development for Decent Work

    01 July 2011

    A guide addressing Value Chain Development (VCD) from a market development perspective with a unique focus on how to achieve Decent Work.

  2. Impact Insurance Research Paper #5: Microinsurance utilization in Nicaragua

    01 July 2011

    The aim of Research Paper #5 was to extend analysis on a randomized evaluation of voluntary health insurance in Managua, Nicaragua. The paper presents evidence that this insurance product did not increase wasteful consumption: children who were insured but not sick at the beginning of the study reported fewer visits to all providers than those who were uninsured but not sick. Importantly, this insurance product did result in some targeting towards less healthy children, as those who were sick at the beginning of the study reported significantly more visits to all providers, including covered providers. The researchers also present retention results where they find that only 6 percent of those insured were retained 18 months after subsidies were no longer available. Lastly, they present some descriptive statistics of diagnoses at health centers and costs to discuss the implications of the main burdens of disease.

  3. Briefing Note #9: A business case for microinsurance

    01 July 2011

    Is there a business case for microinsurance? Under what circumstances can insurance companies generate profits from microinsurance? These are important questions because insurers are increasingly interested to expand into the low-income market. To encourage this expansion, microinsurance initiatives need to demonstrate that they are commercially viable and sustainable over time. Briefing Note #9 assesses the business case for microinsurance through case studies of five microinsurance initiatives.

  4. Impact Insurance Working Paper #11: A business case for microinsurance: an analysis of the profitability of microinsurance for five insurance companies

    01 July 2011

    Is there a business case for microinsurance? Under what circumstances can insurance companies generate profits from microinsurance? These are important questions because insurers are increasingly interested to expand into the low-income market. To encourage this expansion, microinsurance initiatives need to demonstrate that they are commercially viable and sustainable over time. This paper assesses the business case for microinsurance through case studies of five microinsurance initiatives.

  5. ILO and Cooperatives - COOP NEWS No. 2, 2011 (Newsletter)

    22 June 2011

  6. International Year of Cooperatives (IYC) Brief No. 4, June 2011

    17 June 2011

  7. ILO and Cooperatives - COOP NEWS No. 1, 2011 (Newsletter)

    17 June 2011

  8. International Year of Cooperatives (IYC) Brief No. 1, 2011

    17 June 2011

  9. Impact Insurance Research Paper #4: Microinsurance product design

    01 June 2011

    Research Paper #4 presents a survey-based study on preferences for microinsurance products in rural Kenya. More specifically, the study examines preferences for deductibles and rebates. Like consumers in developed countries, the majority of the respondents in this study have a preference for policies without deductibles and for policies with rebates. Risk aversion, financial literacy, health shocks, economic activities and prior experience with insurance affect these preferences. The results of the study suggest that higher uptake of microinsurance might be achieved by taking these preferences and their determinants into account in the design of microinsurance products.

  10. Impact Insurance Working Paper #10: Funeral insurance

    01 June 2011

    This paper highlights that funeral insurance is essentially a term life insurance policy where the benefit is used towards funeral expenses. The benefit can be in the form of a funeral service, a cash benefit that could be used towards a funeral, or a combination of the two. Outside of credit life insurance, funeral insurance is the most prevalent form of microinsurance in a number of countries. Insurers are starting to improve client value by adding elements that go beyond pure funeral insurance.

  11. An Assessment of the Enabling Environment for Women's Enterprises in Lesotho

    15 May 2011

    Assessment Report

  12. Impact Insurance Research Paper #3: The economic value of the willingness to pay for a community-based prepayment scheme in rural Cameroon

    01 May 2011

    While limited access to health care in rural areas of Cameroon may be attributed to an inability to pay out-of-pocket costs for health care services, a Community-based prepayment scheme specifically designed to overcome this barrier and increase access to health care has received limited take-up among rural households in Cameroon. Research Paper #3, led by researchers at the University of Yaounde II and the University of Western Cape, seeks to assess the economic value of a community-based prepayment health care system in Cameroon. The researchers use a willingness-to-pay approach based on the contingent valuation method. The results indicate that rural households are willing to pay on average FCFA 1010 or $2.15/person/month and further suggest that there is great demand for a community health care prepayment scheme in rural Cameroon.

  13. Job-rich Growth in Asia. Strategies for Local Employment, Skills Development and Social Protection

    14 April 2011

  14. Impact Insurance Research Paper #1: Marketing complex financial products in emerging markets

    01 April 2011

    In Research Paper #1, researchers from Harvard Business School, IGIDR and Wharton School conducted a field experiment in which rainfall insurance, a financial derivative for managing rainfall risk in agriculture whose payouts are linked to the amount of rainfall measured at a designated station, was offered to 600 farmers in India. A customized financial literacy and insurance education module communicating the need for personal financial management and formal hedging of yield risks was offered to randomly selected farmers. The effect of the financial literacy training and six marketing treatments are evaluated using a randomized control trial. The study provides some of the first evidence that financial education can influence financial behaviour. Results also reveal extremely low financial awareness, cognitive limitations and poor comprehension of rainfall insurance among the farmers being studied.

  15. Impact Insurance Research Paper #2: Health care utilization in rural Senegal

    01 April 2011

    The aim of Research Paper #2 conducted by researchers at the University of Otago is to analyze the determinants of the use of curative care from qualified workers in Senegal, an area where 94% of the population does not have health insurance coverage. While most studies focus on characteristics of the demand for health care, this study also examines characteristics of the closest facility to analyze the impact of accessibility in addition to price and quality of medical services on health-seeking behaviour. The study reveals that household economic status, price, and quality of care are important determinants of the likelihood of seeking treatment from a qualified provider.

  16. Impact Insurance Working Paper #9: Improving credit life microinsurance

    01 April 2011

    Credit life cover - insurance that covers the outstanding principal and interest of a loan on the death of a borrower - is the logical starting point for organizations new to microinsurance. It is easy to introduce, simple for borrowers to understand, and seen by financial intermediaries as a support to their core business. Credit life can help create an understanding of microinsurance and expand demand by building an insurance culture. Unfortunately, credit life insurance is often designed poorly, providing little value to clients, and reinforcing a common negative attitude toward insurance. Thus, improving the value of credit life products may improve clients’ attitudes towards insurance, and in turn enhance demand. This paper reviews the structure of credit life products and benefits for borrowers, lenders and insurers. It measures the client value provided by a set of surveyed products, and proposes ways to expand products to provide greater value. The paper also investigates the operational issues that should be considered when providing expanded benefits.

  17. The Enter-Growth project – Sri Lanka: Applying a market development lens to an ILO local enterprise development project

    08 March 2011

    Employment Sector - Employment Report No. 11

  18. Briefing Note #7: Beyond sales: new frontiers in microinsurance distribution

    01 March 2011

    Achieving scale through cost-effective distribution is one of the biggest challenges facing insurers in low-premium environments. In an effort to effectively reach a large client base, the emphasis is increasingly falling on innovative new distribution models as alternatives to traditional microinsurance distribution approaches, which typically rely on distribution through microfinance institutions (MFIs). Briefing Note #7 considers the experiences of a group of leading microinsurance innovators and, in particular, the role that new distribution approaches has played. It takes stock of what innovation in microinsurance distribution means and considers the performance of fourteen new microinsurance business models in South Africa, Colombia, Brazil and India in the distribution context. It also provides a summary of the cross-cutting issues and trends emerging across the different distribution models.

  19. Briefing Note #8: Improving credit life microinsurance

    01 March 2011

    Briefing Note #8 explains how credit life cover - insurance that covers the outstanding principal and interest of a loan upon the death of a borrower - is the logical starting point for organizations new to microinsurance, because it is generally easy to introduce, simple for borrowers to understand, and seen by financial intermediaries as a support to their core business. Unfortunately, credit life insurance is often designed poorly, providing little value to clients and their beneficiaries. When products provide little value, they reinforce a common negative attitude toward insurance. Thus, improving the value of credit life products may improve clients' attitudes towards insurance, and in turn improve overall demand for microinsurance.

  20. Impact Insurance Working Paper #7: Formalizing the informal insurance inherent in migration

    01 March 2011

    In our increasingly global economy, labor continues to be a major export commodity for many developing countries. Migration can help families mitigate their risks by increasing overall income levels and diversifying income sources. Yet, many migrants tend to find themselves in positions of vulnerability in their host countries without any access to social safety nets. Emergencies can, thus, quickly erode any savings or assets that the migrant has. Migrant-linked insurance products can help transnational families manage their risks and protect their assets. This paper explores the existing and potential links between migration, remittances and insurance. It provides a mapping of migration-linked microinsurance products, a framework for how to think about them, and an outline of the opportunities and challenges for microinsurers interested in developing products for this market segment.