Emerging Insight: Our predictions for 2015
16 March 2015
2014 was a year of significant change for the industry and for us. This was reflected in our name change and our new strategy to realize the potential of impact insurance. We also began new partnerships with the World Bank and USAID. 2015 will be another exciting year as we launch new partnerships.
But, which trends will dominate the sector? We pick four:
But, which trends will dominate the sector? We pick four:
- Index insurance will shift to the mainstream. The eyes of the international community are firmly on climate change and hopes are high with the United Nations Climate Change Conference in Paris in November. Meanwhile, successful examples of index insurance schemes are demonstrating that it can provide viable protection against weather shocks. 2015 will see our communities of practice on agriculture and index insurance in full swing, providing a rich source of insights on this important topic. In particular, we expect the move to meso-insurance to continue, with a greater push to integrate insurance within the agricultural value chain.
- Public-private partnerships will dominate the health insurance space. Countries with national health insurance funds will continue to try to extend coverage to workers in the informal economy. Public-private partnerships and innovative distribution will form an important part of the solution, as indicated by our work with PhilHealth in the Philippines last year. In 2015 we will expand our engagement with policymakers in other countries to show how the private sector can be an ally to achieve public policy objectives.
- Bundling will be a hot topic. We know that bundling insurance with other financial services has the potential to offer great value to both clients and financial service providers. However, bundling insurance with savings and cash transfers remains particularly under-researched. Keep an eye out for analysis of some pioneering approaches, particularly as we begin testing solutions with a pool of advanced financial institutions in Africa.
- New countries will start to push for more inclusive insurance markets. More insurance supervisors and insurance associations are recognizing the need for a coordinated process to accelerate the development of an inclusive insurance sector, and the ILO is increasingly facilitating such processes. Pakistan, Colombia, Senegal and Tanzania all started these efforts in 2014. Look out for similar developments in a number of countries, including Nigeria, Morocco, Bangladesh, Indonesia, Peru and Brazil.