LANDSCAPE OF DONOR ACTIVITY IN MICROINSURANCE
Henk van Oosterhout, Interim Executive Director, Microinsurance Network
Study: Liz McGuiness, LMG Consulting, for the Microinsurance Network
The global multi-stakeholder platform for microinsurance industry & experts
80 institutional members > 40 countries
www.microinsurancenetwork.org
Connect. Participate. Influence
The Microinsurance Network
www.microinsurancenetwork.org
1. Identify interventions with details since 2011
2. Place interventions in terms of objective, method, funding, and development areas
3. Establish patterns and trends in this landscape
4. Suggest key areas of focus emerging from these patterns
5. Identify global trends
6. Identify donors who are interested in collaborating to develop new donor guidelines on microinsurance
Objectives of the donor landscape study
www.microinsurancenetwork.org
Background information survey
20
98
141112
8
0
20
40
60
80
100
120
Members Non-Members
Nu
mb
er o
f In
stit
uti
on
s
Invited Responded Completed
• 118 donor institutions were contacted
• 20 Donors completed survey
www.microinsurancenetwork.org
Median value of grants in range USD 100,000-499,000 (2015)
1
3
5
3
2
0 1 2 3 4 5 6
under $25,000
$25,000 to $99,999
$100,000 to $499,999
$500,000 to $999,999
$1m. to $4.9m.
$5m. to $24.9m.
$25m.to $49.9m.
$50m. and above
Number of Donorsn=14
www.microinsurancenetwork.org
Projected annual value of MI grants for 2016-2018
0
1
2
3
4
5
6
7
8
9
Increasesignificantly
Increasesome
Remain thesame
Decreasesome
Decreasesignificantly
N/A
Nu
mb
er o
f D
on
ors
(n
=1
8)
2016 2017 2018
Chart does not include – 1 donor which will discontinue MI funding after 2015.
www.microinsurancenetwork.org
Geographical areas receiving donor support
0
2
4
6
8
10
12
14
Nu
mb
er o
f R
esp
on
den
ts
Actual 2011 to 2015 Expected 2016 to 2018
www.microinsurancenetwork.org
Partner organizations receiving donor support
0
2
4
6
8
10
12
14
16
Nu
mb
er o
f R
esp
on
den
ts
Actual 2011 and 2015 Planned 2016 through 2018
www.microinsurancenetwork.org
0
2
4
6
8
10
12
14
Nu
mb
er o
f R
esp
on
den
ts
Actual 2011-2015 Planned 2016-2018
Insurance product support
www.microinsurancenetwork.org
Donors’ objectives in supporting MI
5.88
6.88
6.626.83
6.93
5.00
4
5
6
7
8
Stimulatedemand for MI
Encourage supplyof MI
Build the marketinfrastructure for
MI
Advance enabling& protective
policyenvironments
Promote research& evidence
building for MI
Provide global orregional
coordination forMI
Ran
kin
g o
f O
bje
ctiv
e
2011-2015
www.microinsurancenetwork.org
Trends in donors’ objectives in supporting MI
5.88
6.88
6.626.83 6.93
5.00
6.29
6.88 6.927.07
6.58
5.40
4
5
6
7
8
Stimulatedemand for MI
Encourage supplyof MI
Build the marketinfrastructure for
MI
Advance enabling& protective
policyenvironments
Promote research& evidence
building for MI
Provide global orregional
coordination forMI
Ran
kin
g o
f O
bje
ctiv
e
2011-2015 2016-2018
www.microinsurancenetwork.org
Donor’s perception of their role in MI
2
4
4
4
6
7
8
12
Other
Market infrastructure for microinsurance
Research and evidence building for…
Global or regional coordination for…
Enabling and protective policy environments
Demand for microinsurance
Supply of microinsurance
Market systems approach or broad support
Number of Donors (n=16)
www.microinsurancenetwork.org
0 1 2 3 4 5 6
Lack of Demand from Partners
Lack of Suitable Partners
Lack of suitable projects
Lack of expertise
Product Constraints
Local Enabling Environment
Lack of farmer awareness/ understanding
Low priority
Lack of Rationale/Evidence
Other
Number of Mentions
Inte
rnal
Sup
ply
Sid
eD
eman
d
Sid
e
Challenges
www.microinsurancenetwork.org
Donors support of MI as part of an overall development goal
15 15
12
89
8
2
0
2
4
6
8
10
12
14
16
FinancialInclusion
Agriculture Health SocialProtection
Disasterand Risk
Reduction
ClimateChange
Other
Nu
mb
er o
f D
on
ors
(n
=1
7)
www.microinsurancenetwork.org
Projected donor support in MI as part of an overall development goal between 2015 and 2018
15 15
12
89
8
2
15 15
9
67
8
3
0
2
4
6
8
10
12
14
16
FinancialInclusion
Agriculture Health SocialProtection
Disaster andRisk
Reduction
ClimateChange
Other
Nu
mb
er o
f D
on
ors
www.microinsurancenetwork.org
TRENDS “Inclusion of Agriculture as a
core sector … means that we expect greater attention to this area.”
“There are increasing concerns about adaptation to climate change amongst our partners …” (AFD)
“Strong (political) focus on climate risk insurance.” (GIZ)
2.22.0
3.73.4
3.9
3.3
4.5
3.0
2011-2015 2016-2018
1.01.0
Health
Climate Change
Development sectors of increasing importance in next 3 years
Note: The lower the number the higher the rank
Agriculture
Disaster & RR
www.microinsurancenetwork.org
1.7
2.3
3.8 3.8
6.5
7.0
2011-2015 2016-2018
Financial Inclusion
Social Protection
Other
Development sectors of decreasing importance
Note: The lower the number the higher the rank
www.microinsurancenetwork.org
Priority sector 2016-2018: Agriculture
• 9 institutions ranked agriculture #1 priority
• Median amount committed is higher
• Most plan increased funding in 2016
• A few will increase significantlyAg insurance “is a major factor in farmers
accessing finance”
www.microinsurancenetwork.org
Priority sector 2016-2018: Financial inclusion
• 3 institutions ranked FI #1 priority
• MI portfolios tend to be smaller
• Funding flat this year, will increase some in 2017 & 2018
www.microinsurancenetwork.org
Priority sector 2016-2018: Climate change
• 2 donors ranked climate change #1 priority
• Funding expected to increase some in 2016, and then remain steady
www.microinsurancenetwork.org
Areas of opportunity:
Regulatory and
Supervision Support 5
Scaling 2
Other 5Agricultural Insurance 7
Livestock 1
Index Ins. 3
MI General 1
Health 4
Property 1Disaster Risk Finance 1Climate Change 2
Digital Insurance 2
Products
n=34
www.microinsurancenetwork.org
Key takeaways
Donor landscape: dynamic and growing
Donor objectives: shifting from (1) supporting supply and (2) promoting research & evidence building
(1) advancing the policy and protective policy environments and (2) building market infrastructure
Donor strategies: Movement toward market system development strategy
Caveat: Low response rate & absence of some important donors.
www.microinsurancenetwork.org
Key takeaways• Sectors with increasing support: agriculture, climate change, disaster and
risk reduction and health. However, financial inclusion will still be #2 sector
• Products with increasing support: Livestock, health, property, and disability.
• Lower income countries increasingly emphasized. Selected African nations - prioritized by donors with country specific strategy.
• Donor funding for MI poised to increase.
• Agricultural Insurance will be the most dynamic area: Crop, livestock, index insurance, etc.