Microinsurance Network s Strategy

Transcription

1 Microinsurance Network s Strategy

2 LIST OF ABBREVIATIONS...III LIST OF GRAPHICS... IV LIST OF TABLES... IV FOREWORD... V 0. EXECUTIVE SUMMARY... VI 1. MICROINSURANCE - A DYNAMIC AND RAPIDLY EVOLVING SECTOR THE MICROINSURANCE NETWORK: AN UPDATE OF VISON, MISSION, VALUES AND GOVERNANCE Vision and Mission Values Governance and Organisational Structure EVOLVING DEVELOPMENTS WITHIN THE NETWORK AND BEYOND Membership Funding Situation The Changing Microinsurance Landscape and new orientation RESPONDING TO THE NEW CHALLENGES Overarching Strategic Considerations Priority 1: More Value to the Members Priority 2: Increased Regional Presence Priority 3: Expand Membership Priority 4: Diverse Funding Sources UPDATED OBJECTIVES Introduction Objective 1: Increased and Improved Supply of Providers and Products Appropriate Regulations and Supervisions for the Microinsurance Providers Leveraging Acknowledgement of Microinsurance as a Key Risk Mitigation Tool for the Unserved on Global Platforms A Performing and Sustainable Network BUDGET FORECAST AND FUNDING STRATEGY Budget Forecast Funding Strategy Income from Membership Fee Contributions from the Government of Luxembourg Bi and Multilateral Donor Funding/Contributions from Private Donors and Foundations Income through Sponsorship Other Income Sources Organization and Management of Fundraising and Sponsorship ii

3 List of Abbreviations List of Abbreviations A2II Access to Insurance Initiative APEC Asia Pacific Economic Cooperation ASSAL Association of Insurance Supervisors of Latin America CEO Chief Executive Officer CGAP Consultative Group to Assist the Poor CSR Corporate Social Responsibility COP st Conference of Parties (climate conference of Paris in 2015) GA General Assembly GPFI Global Partnership for Financial Inclusion GFIA Global Forum for Innovations in Agriculture IAIS International Association of Insurance Supervisors IED (Interim) Executive Director ILO International Labour Organization LAC Latin American and Caribbean MENA Middle East and North Africa MIN Microinsurance Network MNO Mobile Network Operator MRF Munich Re Foundation MSME Micro, small and medium size enterprises ODA Official Development Assistance OECD Organisation for Economic Cooperation and Development PR Public Relations SDG Sustainable Development Goals USD United States Dollar (US currency) WMM World Map of Microinsurance iii

4 List of Graphics Graphic Page Graphic 1: World Map of Microinsurance 2 Graphic 2: Vision and Mission Statement 4 Graphic 3: MIN Organizational Chart 6 Graphic 4: Membership Composition (August 2016) 8 Graphic 5: Funding Situation in Graphic 6: Interdependent Relationship of Institutional Priorities 14 Graphic 7: Types of Membership Interaction 15 Graphic 8: List of Prioritized Objectives in New Strategic Framework 20 Graphic 9: Overview Means of Platform Exchanges 21 Graphic 10: Management of the Expert Forums 22 Graphic 11: Background Information Strategic Partners 30 Graphic 12: Strategic Alliance of the Network 31 Graphic 13: Involvement Network in Other Global Events 36 Graphic 14: MIN Office Chart (2016) 40 Graphic 15: Projected Membership Growth between 2016 and Graphic 16: The 2016 and 2022 Funding Situation of the Network 54 List of Tables Table Page Table 1: Positioning of the Network vis-à-vis selected Institutions 9 Table 2: Membership development and involvement between 2009 and 2016 (October 7) 11 Table 3: Change Methodology Matrix Increased and Improved Supply of Providers and 28 Products Table 4: Change Methodology Matrix for Appropriate Regulations and Supervisions for the 31 Microinsurance Providers Table 5: Change Methodology Matrix for Leveraging Acknowledgement of Microinsurance 36 as a Key Risk Mitigation Tool for the Unserved on Global Platforms Table 6: Change Methodology Matrix for A Performing and Sustainable Network 41 Table 7: Funding Requirement Increased & Improved Supply of Providers and Products 45 Table 8: Funding Requirement Appropriate Regulations and Supervisions for the 45 Microinsurance Providers Table 9: Funding Requirement Leveraging Acknowledgement of Microinsurance as a Key 46 Mitigating Tool for the Unserved on Global Platforms Table 10: Funding Requirement A Functional Secretariat 46 Table 11: Overview Funding Requirements 47 Table 12: Overview of the Financial Support of the Luxembourg Government between and 2019 Table 13: Diversifying the Funding Source of the Network between 2016 and Table 14: Possible Funding Sources per Budget Line 52 iv

5 Foreword The Microinsurance Network evolved from a working group of the Consultative Group to Assist the Poor (CGAP) into an independent institution using a five-year strategy plan for the years As the end of this strategy plan approaches, it is time to take stock of the Network s achievements thus far and to reevaluate its position and strategy in the rapidly evolving microinsurance sector. In this paper, a new fiveyear strategy for the period is presented. Different versions of strategic document have been drafted following a consultative process involving Board and members. During this consultative process, the different stakeholders of the Network have taken into account the changing landscape of microinsurance, and acknowledge that the Network has been an integral part in the evolution of microinsurance and financial inclusion. The Network must now move away from the broad strokes of the past and move into a more focused mission which includes networking, facilitating, educating and communicating. This Strategy document applies a Theory of Change Methodology to highlight its priority area, the underlying rationale and the intended consequences of these outputs. (For more details on this Theory of Change see chapter 5.) Member consultations will continue in the coming months, until it has been approved by the General Assembly in November v

6 0. Executive Summary The Network promotes the development and delivery of effective risk management tools including insurance services for unserved people, by providing a platform for information sharing and stakeholder coordination. The vision of the Network is to have a world where people of all income levels are more resilient and less vulnerable to daily and catastrophic risks. The means to achieving this vision is through an all-inclusive access to effective risk management tools. While the previous strategy period ( ) aimed at awareness creation of, and interest in risk management tools, this new strategic phase ( ) uses this increased awareness to focus on implementation and expansion of these tools in general and inclusive insurance in particular. The Microinsurance Network sees risk takers and insurers core in making this transition from awareness to implementation and expansion of effective management tools for the low-income and unserved client segments and to provide tangible value for these end beneficiaries. The strategy for to 2022 focuses on four essential priorities, namely (i) increasing the Network s brand and activities in Africa, Asia and Latin America, (ii) providing ever more tangible value to its existing and new members (iii) attracting new and influential members, and (iv) diversifying and increasing its funding sources. Increasing the Network s brand and activities in the South means organizing regional conferences with topics and themes relevant to the stakeholders in these regions. It also includes recruiting staff from the South, who operate from the South. In providing more general and ad-hoc value to its members, the new strategy wants to facilitate unique, targeted, personalised and data-driven networking opportunities; deliver knowledge sharing events on cutting edge issues through a variety of innovative and exciting formats, and enhance valuable access to global platforms and regulatory bodies for its members. Attracting new and influential members requires a more assertive membership strategy and better use of member recruitment opportunities that alliances with Access to Insurance Initiative (A2II), International Association of Insurance Supervisors (IAIS) and strategic partnerships with selected global platforms offer, together with the organisation of regional conferences. Also the delivery of tangible benefits to members will convince others to join the Network. Ultimately the Network will implement a funding strategy that involves income from membership fees, with a balanced mix of core funding from public and private sources, programme funding for projects and sponsorships. The strategy has a number of objectives that contributes to the vision and mission of the Network. The first objective is Increased and Improved Supply of Providers and Products. The rational behind this first objective is that a diverse and growing number of insurers, which offer a broader range of insurance services to an increasing number of low-income people, will bridge the gap between supply and demand in the risk mitigating measures. Through shared learning and facilitating knowledge exchange, the Network promotes the expansion of insurance suppliers and encourages insurers to broaden the type of services on offer. The shared learning and knowledge exchange methods is both on-line and off-line. Examples of on-line knowledge exchange include Expert Forums; world map of microinsurance (WMM) and sharing information through the Network s website and social media. Off-line shared learning and knowledge exchange methods include organization of global and regional conferences and publications of articles cutting edge microinsurance topics. vi

7 The translation of shared learning and knowledge exchange to actual implementation is supported by efforts of the Network in fostering an enabling environment (objective 2: Appropriate Regulation and Supervision for the Microinsurance Providers ). A well-functioning policy and regulatory environment is critical to the successful expansion of insurance to the unserved. The Network has formed a strategic alliance with the IAIS and the A2II. Through this partnership, the Network and its members influence the agendas of regulators and supervisors and future legislation pertinent and important for the Microinsurance stakeholders. Means to influence future legislation is through Consultative Forums and through active involvement during the drafting of IAIS regulation papers. Through a strategic alliance with the Global Federation of Insurance Associations (GFIA) the Network further promotes industry awareness, fosters best practices, peer to peer learning and pilots on the ground. This strategic alliance also offers opportunities for the Network to welcome influential new members and explore funding opportunities for joint programming. Growing attention and concerns over the consequences of climate change is an opportunity for the Network to promote its services and that of its members, that microinsurance plays a role in mitigating the impacts of climate change and disaster reduction. The Network will align its priorities and focus with that of global forums such as G-20; G20-GPFI; G-7, APEC, Climate change groups and others. The Network sets up partner concepts and criteria for cooperation and participation. Under the third objective Leveraging Acknowledgement of Microinsurance as a Key Risk Mitigation Tool for the Unserved at Global Platform the Network influences power and ensures that microinsurance has a role to play in strategies, plans and interventions to combat amongst others the consequences of climate change, reduce poverty and attain sustainable development. Details of this influencing include addressing key microinsurance issues; offering practical guidance in other microinsurance issues, promoting stronger opportunities for the microinsurance sector -in particular the microinsurance industry- and pushing for issues important to its members. At the same time by deepening cooperation with other organisations, the Network provides its members access to information. Advocacy and networking alliance makes it possible for the Network to attract new members; foster an industry dialogue; keep members abreast of the latest trends and developments and explore funding opportunities for joint programming. Through this strategy the Network increases value to existing members and attract new members through (i) easier access to other markets through market information; (ii) access to the latest trends and developments in Microinsurance insurance (iii) access to both practical and operational information as well as information that shape long-term market perspectives of insurance members (iv) possibilities to influence the agendas on global platforms and provide technical inputs on discussion papers and (v) possibilities to influence the agendas of regulators and supervisors and future legislation pertinent and important for the Microinsurance stakeholders. The financial implications to carry out the three objectives including the management to make this all happen is an increase of the annual budget from 761,000 in 2017 to just over 1 million in To finance these financial requirements, the Network implements a new funding strategy. The objective of the funding strategy is twofold; first to meet the cost centres mentioned above and make the Network financially sustainable; second, to diversify the funding sources and make the Network less vulnerable. With the start of a new strategic period, the Network will focus efforts on producing outputs that are selffinancing or revenue-drivers, through registration fees for virtual and in-person events such as Expert vii

8 Forums, field trips and regional workshops. Further the Network will more closely link activities with the priorities of donors and foundations to attract funding (both donor and sponsor money). Also efforts will be made to increase membership fee income from the current 125,000 to 500,000 in The Board has created a Finance and Fundraising Committee that monitors the implementation of this funding strategy will be a transition year during which the different fundraising and sponsorship activities will be tested and evaluated towards the end of that year. Lessons learned will be taken into account in detailing the fundraising strategy for the remaining period until viii

9 1. Microinsurance - A Dynamic and Rapidly evolving Sector Low-income households and micro, small and medium size enterprises (MSMEs) are particularly vulnerable to risks, be they related to health, agriculture, property or death. These risks often bring with them heavy financial implications as individuals, businesses and households attempt to mitigate them. Very few of these groups are served by efficient and effective formal risk management and social protection mechanisms, meaning that recuperating losses and recovering from shock is difficult, at best, and impossible, at worst. As the world is beginning to recognize the tremendous impact climate change is having on all regions of the world, the poor and the vulnerable are the most at risk of the dire consequences that push millions into poverty every year. Insurance plays a vital role in mitigating these risks and providing a risk management tool to the vulnerable and at-risk. Increasing access to insurance has two important benefits, one direct and one more indirect: 1. Insurance coverage makes individuals and households more resilient and less vulnerable to risks; 2. Wide coverage fosters socio- economic growth on a national level, which in turn, provides more economic opportunities and safety. Microinsurance is increasingly being recognized as an important tool for low-income households to be able to mitigate risk and recover from financial shocks. Today, according to the Microinsurance Network s World Map of Microinsurance, over 280 million people worldwide are covered by at least one insurance policy. In Africa, insurers have capitalized on the enormous penetration of mobile phones in the region to offer microinsurance policies through their partner mobile network operators (MNOs). In Latin America, a diverse range of intermediaries has also brought about dynamic change in the market, with products distributed through utility bills, supermarkets and other less conventional players. According to the World Map of Microinsurance programme, total written microinsurance premiums in the Africa region now amount to almost USD 756 million, up from USD 387 million in 2011 and 61.8 million lives are now covered compared with 44.4 million in The region has also experienced evolution in terms of the products and associated benefits offered on the market, and an increase in providers entering the market. In Latin America and the Caribbean, almost 8% of the population is covered by a microinsurance policy with more than 200 products identified equating to USD 828 million in written policies. In Asia, countries like India and the Philippines are leading the way in proactively creating the enabling regulatory environment needed to bolster growth. Not only is microinsurance penetration increasing year on year, but progressively more major global players recognize the value of microinsurance as a key part of the risk mitigation puzzle, particularly in relation to agriculture, health and climate change. Under the 2016 presidency of Germany, the G7 leaders announced a commitment to increasing climate insurance cover for an additional 400 million poor and vulnerable people in highly exposed and low income countries within the next five years. The Asia-Pacific Economic Cooperation (APEC), aided by input from the Network, included microinsurance in the APEC Roadmap for Resilient Economies and the COP 21 Paris Agreement included articles mandating governments to strengthen and expand the Warsaw International Mechanism on Loss and Damage. Increasingly more national governments are prioritizing the creation of an enabling policy and 1

10 infrastructure environment for microinsurance and are integrating microinsurance into their resilience frameworks. The announcement of multiple investment bodies such as Blue Marble Microinsurance signals a willingness on insurers supply side to enter the microinsurance space. However, there are two key challenges to extending effective insurance services to low-income households, both of which have experienced vast improvements over the last decade but remain a barrier to sustainability and profitability and a deterrent for the engagement of commercial insurers. Both are intrinsically linked: 1. Microinsurance products need to be accessible and affordable to low-income households. To address this challenge, distribution models have to be low-cost, and allow for largescale rollout, to take advantage of economies of scale. 2. Microinsurance products and services have to be appropriate within the context of lowincome households, and provide high client value. To address this challenge, services have to be tailored to meet the needs of low-income clients. Clients also need insurance education to make informed decisions. These two points continue to be seen by the uninitiated in the insurance industry as mutually exclusive, and maintaining a business case beyond pilot stage and without heavy government subsidization, whilst 2

11 putting the needs and protection of the consumer at the forefront, remains both a perceived and an actual deterrent for many insurers. Furthermore, from the rapid expansion of digitally-distributed insurance products in Africa, Asia and Latin America new challenges have emerged. Many products are now client-agnostic, offering products to anyone and everyone but at prices low enough to attract low-income consumers. Whilst such products offer value to these consumers, without being appropriately designed to address their needs, the sector risks moving upstream to target the middle-income, with low-income people being abandoned as a priority target. This has heralded a significant shift in focus of the microinsurance sector and a tendency to move upstream to incorporate middle-income clients to satisfy the business case. 3

12 2. The Microinsurance Network: An update of Vison, Mission, Values and Governance 2.1 Vision and Mission The vision of the Network is to have a world where people of all income levels are more resilient and less vulnerable to daily and catastrophic risks. The means to achieving this vision is through an all-inclusive access to effective risk management tools. The Microinsurance Network s mission is to promote the development and delivery of effective risk management tools including insurance services for unserved people by providing a platform for information sharing and stakeholder coordination. This platform aims to promote the development and proliferation of an all-inclusive set of risk management tools for this market segment, and improved access to these risk management tools in turn would allow these people to become more resilient and less vulnerable to daily and catastrophic risks. As an established brand in the sector that has played an important role convening experts on matters around regulation, agricultural insurance, performance, consumer protection to name but a few, the 4

13 Microinsurance Network has greatly contributed to the awareness of and interest in risk management tools, and the Network will use this increased awareness to focus on implementation and expansion of these tools in general and inclusive insurance in particular in the next strategic phase ( ). The Microinsurance Network focuses on the low-income segments of the unserved and sees the insurers as the key stakeholder through which to provide value for the end beneficiaries. However, the Network remains a multi-stakeholder network, which assembles the broad spectrum of expertise and approaches, and bridges different sectors and industries: insurance, development, social protection, health and agriculture, climate change and disaster management, and so forth. Coordinating and engaging these different stakeholders to work together in a way that values different perspectives and approaches is a vital function of a network and the basis for knowledge generation. It ensures that limited resources produce relevant learning and emerging practices that contribute to a large body of knowledge and public goods, which enable the development and delivery of effective risk management tools and insurance services to the unserved low-income populations. Importantly, in providing a platform for dialogue between risk takers (insurers), intermediaries such as Mobile Network Operators (MNOs), financial institutions (including MFIs), regulators, supervisors, donors and other stakeholders, the Network is playing a vital role in establishing the enabling environment for a solid business case to emerge and for microinsurance to thrive. Working with limited resources and only a handful of full-time staff, the Microinsurance Network has achieved an extraordinary amount since its inception, including being recognized as a champion in microinsurance advocacy and the go-to institution for microinsurance information; as a Network for in-depth research and information and as a knowledge exchange centre for cutting edge microinsurance topics. 2.2 Values The Microinsurance Network is committed to core values. These values are shared by the members and are the basis of all its activities. Microinsurance: The Network is committed to effective inclusive insurance, which is appropriate in the context of development, specifically adapted to the needs of the unserved and responsible in its outlook. Network: The Network is committed to open dialogue, respect for different approaches, the creation of public goods and institutional neutrality. Collaboration within the Network is characterised by team-work, knowledge sharing and voluntary contributions. 2.3 Governance and Organisational Structure The Network s structure includes a General Assembly, a Board of Directors and a Secretariat as depicted in the institutional organigram overleaf: 5

14 The General Assembly is the highest policy making body and meets at least once a year. The General Assembly takes decisions including approval of the 5-year strategy plan, members and approval of work plans and policy issues by simple majority vote. The Board of Directors provides strategic guidance and oversights of the Network. The Secretariat headed by a Chief Executive Office (CEO) is the implementation arm of the Network. It prepares the strategic documents and annual work plans as well as budgets for approval by the Board and the General Assembly and implements these plans. It manages day-to-day operations and communication with the stakeholders. 6

15 3. Evolving Developments within the Network and Beyond 3.1 Membership The Microinsurance Network was established in 2002 as the CGAP Working Group on Microinsurance when sixteen experts and representatives from donor organisations saw the need for an exchange and learning platform to ensure that the then-new concept of microinsurance fulfils its potential. With microinsurance becoming more mature and mainstream, the importance to the actual implementation in the field increased. Therefore, during the ensuing years membership expanded, not only in terms of diversity, but also in numbers. Nowadays the MIN membership includes insurance companies and associations from the North and South, (e.g. ICMIF, Fasecolda, AMIS), insurance brokers, consultancy offices, financial institutions, international and bilateral donors, private foundations, NGOs, regulators and policymakers including A2II, research institutions as well as individuals. As of October 2016, this member-based platform has over 88 institutional and 29 individual fee-paying members, comprising nearly 300 microinsurance experts in total. 31% of its institutional members are insurance companies, intermediaries and insurance associations. Indirectly, the Network reaches out to many more stakeholders than mentioned above. Through the six insurance associations the Network includes many indirect members and through contacts with regulators the Network is relevant to other risk takers as 7

16 well. The membership criteria determine that all members should be active in and support inclusive insurance and risk management for the poor and contribute, through their work in the Network, to good practices and public goods. Maintaining this criterion is essential to ensuring all members of the Network have knowledge and experience to share and are experts in their respective fields. This raises the value of membership and ensures a high calibre of information exchange. Overall, the Network has consistently maintained a very healthy diversity of microinsurance stakeholders in its membership, as demonstrated by the graphic 4 Membership Composition 3.2 Funding Situation Since the formalization of the Network s institutional independence, the majority of its core funding has come from one key donor - the Luxembourg government. The Network has signed a 5-year term agreement with the Luxembourg government that has secured funding until mid In 2016 the Network received 500,000 support, equivalent to 72 percent of the total income for that year ( 696,000) and for 2017 still under the current agreement-, the Luxembourg government will fund 250,000. Further the Network receives ad hoc sponsorship for specific projects from other donors. In 2015 for instance the most important programme funding sponsorship came from Making Finance Work For Africa, 8

17 Munich Re Foundation and GIZ totalling 141,000 or 17.6 percent of the total income. In addition the Network received sponsor money from MetLife Foundation and BRADESCO of 50,000 (6.2 percent), and combined they made up nearly 24 percent of the Network s total revenues. In 2016 programme funding amounted to 2.3 percent and sponsorships 7.2 percent of the total income, while membership fees represent roughly 18 percent of the total income for The Changing Microinsurance Landscape and new orientation With the external landscape evolving, so too has the nature of the Network changed. As the Network evolved from a working group to an established institutional entity, it has taken on many initiatives aimed at meeting the interests of its multi-stakeholder membership. During the June Member Meetings and General Assemblies, members have since called for the Network to streamline its activities and refocus on fewer, but more strategic issues, to refocus and reprioritize directions to have more impact. The Board has re-evaluated its focus as the microinsurance sector has moved towards inclusive insurance and other facets of risk management impact on the poor (e.g. climate catastrophe bonds), and this has required a strategic reorientation to ensure that the Network stays relevant to this changing landscape whilst maintaining its core mission of ensuring the low-income people have access to effective insurance. In so doing, the Network also had to consider its position within the current institutional landscape, as partially outlined in the overview below (table 1). Table 1: Positioning of the Network vis-à-vis selected Institutions ILO s Micro Access to Microinsurance Microinsurance MicroInsurance Munich Re Insurance Insurance ICMIF Network Innovation Centre Foundation Academy Initiative Key activities Facility Sharing learning and working groups X X X X Multi-stakeholder coordination X X X Knowledge facilitation X X X X X X X and dissemination Knowledge generation X X X X X X Providing grants X X X Capacity building Expert Forums X X X X X X Research X X X X Technical assistance X X X X Product development Promotion X Regulation X Providing guidelines X Regulation X X The following section puts forward some of the key lessons learned by the Network in recent years, as summarized by the Network s Board during the January 2016 strategy workshop. These lessons form the underpinning and rationale for the new five-year strategy: 1. Brand: The Network has been successful in establishing a strong brand that is respected as a leader and knowledge generator in the sector. 9

18 2. Business case: Insurers which are not already involved in microinsurance are often only motivated or persuaded to do so by examples of a solid business case. However, providing solid business cases can be difficult as insurers already operating in the space can be reluctant to share information that led to their success. Some insurers are also motivated by the opportunity to introduce, and thereafter strengthen, their branding in emerging markets, recognising that the emerging global middle-class that is rapidly growing is comprised of hitherto low-income individuals. The World Map of Microinsurance is instrumental here in providing the data that supports the business case, demonstrating that microinsurance programmes can be profitable and scaled up, and need not be implemented only under corporate social responsibility (CSR) arms or with heavy government subsidisation. The Network needs to continue to focus on the business case in key communication outputs. 3. Influence: The impartial and multi-stakeholder nature of the Network has enabled the Network to be a credible sectoral leader in advocacy, shaping global agendas and reconciling multistakeholder tensions. This is evident in the key role the Network played in APEC discussions around incorporating insurance in its disaster frameworks, convening regulators, supervisors and industry in its Consultative Forums, as well as its influence in drafting the IAIS papers and contribution to the G20 GPFI sub-groups, to name but a few. Such experiences have proven that the Network has the expertise in its membership and strong brand to successfully advocate for inclusive insurance in global agendas. 4. Networking: The Network has been an instrumental force in providing spaces for insurers, regulators, donors and other inclusive insurance stakeholders to network, exchange knowledge and develop partnerships. However, feedback from members suggests that there is a need for further and more strategic and organised networking. 5. Regulation: Stakeholders have identified a key strength of the Network, that is providing a platform for dialogue between regulators and industry. Through its unique relationship with the IAIS, the Network offers access to these players and thus tangible value for its members. This has been reinforced through the positive feedback from and participation in our tri-annual Consultative Forums. 6. Working groups: The Network s working groups have collaborated on a wealth of projects which have contributed significant lessons and information to the microinsurance sector. The working groups have been very much appreciated by members, but at the same time among others, due to the voluntary nature of these projects, the Network has found that coordinating working group projects can be extremely time-consuming for both the Secretariat and the members of the working group. The members of the Network have found its publications valuable but have indicated that they would find more value if efforts and resources were concentrated on more networking and content-driven events. 7. Activities: As a multi-stakeholder network in a sector which overlaps with many others such as mobile communication, regulation, insurance, inclusive finance and banking, the Microinsurance Network has in recent years had its work cut out for it and has struggled to be everything for everyone. With each stakeholder carrying the same weight in importance, the Network has worked very hard to provide value for all stakeholders and remain an important institution in every aspect of microinsurance. A more focused but inclusive approach is required. 10

19 8. Membership: A steadily growing membership with an impressively high retention rate (see table 2) which the Network has experienced, signals that members are finding real value in being part of the Network. The Network would have liked an increased representation from the Southern hemisphere, as well as a higher proportion of its funding coming from membership fees. Acknowledging that key to satisfying the Network s mission is the actual implementation of the cutting edge inclusive insurance measurers, the Board voted during its meeting in Bethesda in January 2015 to focus efforts on engaging industry especially from the South, though importantly not to the exclusion of other constituencies. The multi-stakeholder platform provided by the Network continues to offer significant value. 9. Funding: The donor landscape for funding of microinsurance is currently very challenging and many organisations operating in this space are experiencing difficulties in securing funding. In addition, being funded predominantly by donor money may have weakened the Network s brand as an industry influencer. The Network has recently prioritised efforts towards making its activities substantially self-funded or revenue-drivers. This could mean for instance that regional conferences are funded through fees and local sponsorship to cover the costs. Another component is more closely aligning activities and services with priorities of donors. This implies that research, conferences and other knowledge generating activities focus more on the role risk management and risk reducing tools play (or can play) in the Sustainable Development Goals (SDG) till 2030 and in climate change. Redesigning outputs and services to be cost-recovering or revenue drivers and developing a funding strategy that prioritises, non-exclusively and balanced membership fees, industry funding/sponsorship and donor funding should help to mitigate these concerns. For more details on the funding strategy, see chapter Impact: There is a long causal chain to impact, as the Network works with members who give technical assistance to others who work with clients. This has meant that, as is the case with most network organisations, the Microinsurance Network has experienced difficulties in establishing and communicating evidence of impact. This Strategic Document will use the theory of change how insurance eventually contribute to consumer impact and the role of the insurance sector and in particular the risk takes have in components of that theory of change. Impact is then measured and reported as the level of change the insurers have affected in the value chain and not in reporting on consumer-level impacts that the insurers do not affect directly. Also improving member statistics through among others the landscape and secondary data and updates in the World Map of Microinsurance (WMM) can provide an indication of impact reach (e.g. assuming an impact on the number of unserved consumers reached by the insurers). Table 2: Membership development and involvement between 2009 and 2016 (October 7) Year Institutional members # of people active in these institutions Individual members

20 (7 October)

21 4. Responding to the new Challenges 4.1 Overarching Strategic Considerations The Network has been successful in achieving its original mission to provide a platform for microinsurance experts to come together and exchange ideas, knowledge and experience. The Network has worked tirelessly for more than a decade to promote microinsurance internationally and thus contributed greatly to increase in both recognition and uptake. However, the work is not yet done. Whilst promising growth has been seen in all regions, overall penetration remains low creating significant opportunities for current and future members. Though the diversity and benefits of products available on the market evolution are increasing, the majority of products underwritten are for life insurers leaving general insurers catching up. Many insurers remain unconvinced by the business case for microinsurance and are reluctant to take on the risk associated with approaching uninitiated consumers who may lack the insurance culture, geographic proximity, literacy and access to distribution channels, typically experienced by more traditional insurance clients. Even those insurers already operating in this space encounter difficulties in reducing administration fees, educating clients and reaching scale, all of which can be assisted through effectively designed and implemented networking activities. The Microinsurance Network therefore still has a vital and valuable role to play in advocating for highquality microinsurance products and an enabling regulatory environment, as well as encouraging more players into the market to success in their operations in the low-income market. Among others to manage the potential sensitivity of picking on the lower end of the market segment, the Network will promote the business case of inclusive insurance by referring equally to consumer value and not just consumer protection. As it stands today, with its growing and diverse network of members from a range of experience and expertise, it is the only organization best positioned to play the fundamental role of connecting knowledge centres with knowledge gaps, facilitating purposeful networking opportunities of microinsurance experts, providing access between regulators and industry, and providing platforms for focused, multi-stakeholder discussion on cutting-edge microinsurance issues that will help the sector to reach scale and deliver products that meet the needs of its demographic. To become a more results-oriented and sustainable network, the Microinsurance Network needs to: 1. Implement more focused and streamlined initiatives; 2. Increase visibility in Africa, Asia and Latin America and expand its member base in the Southern Hemisphere -directly and indirectly through associations and other networksand this way become more representative of the community that it seeks to represent; 3. Focus on delivering targeted and valuable knowledge-sharing opportunities for its members; 4. Maintain a database of in-depth profiles of each of its members for more efficient networking and knowledge sharing; 5. Implementing innovative, valuable and targeted networking opportunities; 6. Secure and deepen strategic alliances with IAIS, A2II and GFIA; 7. Leverage the recognition within global platforms that microinsurance is a key risk mitigation tool for the poor and unserved; 13

22 8. Secure diverse core funding including programme funding, sponsorships, membership fees and donor funds to support the delivery of the Network s mission, desired outcomes and aspirations; 9. Enhance and align the Secretariat to efficiently and effectively implement the Strategic Plan and to respond to the policies of the Board. On an institutional level, the Secretariat will focus on four essential priorities, namely increasing the Network s brand and activities in Africa, Asia and Latin America, attracting new and influential members, diversifying and increasing its funding sources, and providing ever more tangible value to its existing and future membership. These priorities are specifically structured to refocus on the fundamental responsibilities of the Network, which are networking and value provision. These four priorities are interdependent and have a direct, causative effect on one another, as outlined in the graphic 6: 4.2 Priority 1: More Value to the Members The strategy has been designed to take a more focused and streamlined approach to the Network's activities, evolving from a previous, all-encompassing nature of activities to strategic and focused ones. This strategy aims at offering members targeted and valuable knowledge-sharing opportunities (see graphic 7). 14

23 1. Expert Forums: One significant change already implemented is the transitioning of Working Groups to a more strategic emphasis on disseminating lessons and knowledge through smaller, yet more broadly available communication channels. Developed during the June Member Meeting of 2015 in a meeting that included Board members and Working Group Facilitators this change was designed to reduce the workload and responsibility of working group members and shift the onus onto the Secretariat while all members obtain improved and more timely knowledge. Members will provide consultative input on key issues in their specialized field rather than undertaking time and resource intensive projects. Board members, members and, on occasion, external entities will feed strategic priority topics into the Secretariat, who will then be responsible for communicating these topics through a range of communication channels. 2. Website and Social Media: The new concept of Expert Forums is just one of the means to create value to the members. Through the website and social media, the Network highlights the activities of the Network and its members. It also hosts an online microinsurance library with over 400 publications. Through LinkedIn, Facebook and Twitter the Network shares member s activities, and direct readers to new content on the Network website. The World Map of Microinsurance displays per continent and countries different ratios such as health care ratio, accident, property, agriculture and credit life 15

24 ratio among others. Also different landscape studies can be downloaded deepening of the information presented and more interaction dialogue with members. The strategy documents highlights improvements of the World Map with new ratios; champions in microinsurance and improved dialogues through the World Map. 3. June Member Meeting: The Network offers various off-line communication and knowledge sharing opportunities as well. During the June Member Meeting (JMM) members of the Network gain insights into key areas of development in the sector and can participate in discussions on topical issues. New are regional conferences with themes and topics attuned to the needs and priorities of the members in that region and with high-quality content that matches the knowledge gaps in the region. New as well as South-South dialogues and field trips that cultivate an in-depth understanding of the microinsurance business, provide networking and knowledge sharing opportunities and offer robust knowledge of key microinsurance issues. 4. International Microinsurance Conference: The Network already co-organises the International Microinsurance Conference (IMC), which is the biggest microinsurance conference in the world that brings together delegates from around the world and from a range of institutions and companies to exchange experiences and discuss challenges and solutions of extending insurance services to low-income people. 5. Landscape Studies: Access to data generates market knowledge, facilitates market development, furthers best practices and can lead to better products and services and therefore the Network continues and improves the landscape studies carried out every year. 6. State of Microinsurance: Members can learn from data and experience-driven insiders' perspectives on key issues and trends in microinsurance through the State of Microinsurance. 7. Access to Regulators: The Network has formalized links with regulators such as IAIS. Jointly the Microinsurance Network, the IAIS and A2II work on an enabling environment for the microinsurance sector through the Consultative Forums. However, the Network also provides technical background inputs in draft papers of IAIS. 8. Global Platforms: Finally, in recognition of global developments in the awareness of and importance of financial inclusion, the Network will more closely follow and seek to participate in the priorities of G-20; GFIA; G20-GPFI; OECD, G-7, APEC, Climate change groups and global events. Advocacy and networking alliance makes it possible for the Network to attract new members; foster an industry dialogue; keep members abreast of the latest trends and developments and explore funding opportunities for joint programming. Through all these services and networking events, the Network creates more value to the members, in particular offers: 1. Easier access to other markets through market information, both quantitatively and qualitatively; 2. Access to the latest trends and developments in Microinsurance insurance. The Network offers members access to the state-of-the-art knowledge and technical expertise on specific 16

25 inclusive insurance topics. The Network will seek to offer a global and holistic perspective in microinsurance made possible through its multiple membership; 3. Access to both practical and operational information as well as information that shape longterm market perspectives of insurance members; 4. Possibilities to influence the agendas on global platforms and provide technical inputs on discussion papers. It creates possibilities for members and the Network to access financial resources through participation in global events; 5. Possibilities to influence the agendas of regulators and supervisors and future legislation pertinent and important for the Microinsurance stakeholders. The Network is the only network that has access to strategic alliances with IAIS and A2II. 4.3 Priority 2: Increased Regional Presence For the Network to offer value to its members and to serve its global mandate, it is vital that it continues to attract a diverse range of members from all regions, representing countries from Africa, Asia and Latin America. Not only will this bring to the Network a healthy diversity of knowledge and experience to exchange, but new members bring forward the potential for new partnerships. To achieve this regional diversity, the Network will be proactive in securing new international members but also identify how to provide value to these members and address their context-specific needs. Regional focus addresses the first 5 bullets in the previous section but tailored to the region. The Network will target mainly mediumlevel industry players from African, Latin American and Asian countries that have the most to offer as a member, as well as the most to gain, and thus potentially implement. Increased regional presence also means stationing staff of the Secretariats in Asia, Africa and Latin America, with the mandate to attract membership, develop networking opportunities, and more. For more details, see Section Priority 3: Expand Membership The Network will enhance its brand value in regions from the South. During the strategy period 2017 to 2022, the Network will greatly increase the number of members from Asia, Africa and Latin America through focused and consistent member prospection strategies. The Network is best positioned to do so by collaborating with regional partners on events and co-opting new members through association members and A2II. This way the Network can build-up scale over a relatively short period of time. The Secretariat will prioritize regional countries in which to hold key Network events, such as workshops, field trips, the June Member Meeting and Consultative Forums and the like. It will also tailor content of communications outputs to meet the interests of members and potential members in these priority regions and recruit native Spanish and French speakers into the Secretariat to increase capacity to develop communications outputs in these languages. The Secretariat will disseminate all major communications outputs (including the website) in English, French and Spanish. Finally, the Network will introduce a new members category that facilitates co-opting new members through other Networks and A2II events. 17

26 4.5 Priority 4: Diverse Funding Sources For the Microinsurance Network to become sustainable, it needs to look into diversifying its funding sources. Currently, it receives 72% of its core funding from one source and member contributions account for 18%. The Network will implement a funding strategy that involves income from membership fees with a balanced mix of core funding from public and private sources, programme funding for projects, sponsorships, that ultimately leads the Network to financial autonomy. 1. Membership fees: In 2015 the Board of the Microinsurance Network approved the creation of a new category of membership named Sponsor member which has the highest fee at 5,000. This entitles sponsor members to acquire substantial branding and promotional benefits and offers potential alternative revenue streams for the Network. However, the membership fee structure as it stands today remains a challenge to acquiring new members. For many major, international players the fees are seen to be too low, and an assumption is made that the low fees correlates with low value. For smaller entities, however, particularly those from developing countries, the fees are prohibitively high. The Board and Secretariat will propose a new Network fee structure to be attractive to all players entering the market while enhancing the funding of the Network. 2. Balances mix of core funding from public and private sources: The Network has benefitted from the kind support of the Luxembourgish Government since 2012 and the current financial agreement ends in Thanks to the finding from Luxembourg Government, the Network managed to establish itself as an independent and capable institution. Nevertheless, it is important that the Network starts to move away from being donordriven to being supported by its membership fees, programme funding and sponsorship. For more details, see chapter 6 3. Programme funding: Thus far, the Network has financed many of its major projects through seeking donor funding and partnerships. This is particularly true of working group projects. Otherwise, the Network tended to allocate its core funding to such projects. As the Network approaches a new strategic period, it will focus efforts on producing outputs that are selffinancing or revenue-drivers, through registration fees for virtual and in-person events such as Expert Forums, field trips and regional workshops and conferences. Additionally, it will seek external sponsorship for products such as The State of Microinsurance magazine. The improved member benefits and valuable activities are explained in detail in chapter 5. For details of financial projections of the Strategic Plan for the period , see chapter 6. 18

27 5. Updated Objectives 5.1. Introduction Over the next five years, the Network is committed to three + one specific objectives that needs to be achieved through the knowledge exchange and platform services the Network offers to its members. These objectives are: 1. Increased and Improved Supply of Providers and Products 2. Appropriate Regulation and Supervision for the Microinsurance Providers 3. Leveraging Acknowledgement of Microinsurance as a Key Risk Mitigation Tool for the Unserved at Global Platform. The fourth object is A performing and sustainable Network. Though this is not part of the knowledge exchange and platform services, a performing and sustainable Network is a necessary intermediate condition to achieve the other three objectives. Each objective is thus critical for the Network to achieve its mission. Detailed work plans around these objectives for the upcoming years will be established by the end of each calendar year. The following sections detailing each objective follow a Theory of Change, which is designed to provide a comprehensive description of how and why each specific objective has been chosen and the short-term and long-term changes expected. The following is a brief explanation of the Theory of Change tables presented at the end of each objective: 1. Priority : This is the strategic priority and action point which the Network will focus on; 2. Key target audience : That is the main audience, which the Network will target a particular activity to; 3. Entry point to reach audience : This is the channel or output through which the priority will reach the intended audience; 4. Steps needed to bring about change : This summarises a high-level look at the steps needed to be taken to effectively implement the priority; 5. Measurable effect of work : This is the initial glimpse at how the Network plans to evaluate its impact per priority; 6. Wider benefits of work : This summarises the indirect or broader benefits and change predicted to come about as a result of the strategic priority being implemented and finally 7. Long-term change foreseen : Which is an idealistic look at the end result and impact on the sector desired by the Network. These may be harder to measure in terms of impact than the direct effect of work. 19

28 5.2. Objective 1: Increased and Improved Supply of Providers and Products A diverse and growing number of providers offer a broader range of insurance services to an increasing number of low-income people, bringing microinsurance to scale The rationale behind this objective is that with more providers offering a wider range of insurance products, the gap between supply and demand of microinsurance products will narrow. In order to address the need for and penetration of microinsurance, overall supply of insurance products and services should increase. This, both in terms of the number of low-income individuals covered by insurance, but also in terms of a broadening range of services offered. Through shared learning and facilitating knowledge exchange, the Network can promote the expansion of insurance suppliers into previously neglected geographical markets and market segments. It can also encourage insurers to broaden the type of services on offer, through content generation and information and experience exchange opportunities, on-line as well as off-line information sharing such as regional and other conferences and events, publications and the like. The Network s position as a multi-stakeholder platform means it is best placed to encourage good practices and facilitate knowledge sharing as a way of stimulating supply. With its renewed focus on the 20

29 industry as the key stakeholder through which to deliver on its mission, the Network can ensure that relevant research and information is being communicated directly to those implementing insurance schemes on the ground, including (micro)insurance companies, insurance brokers, intermediaries, microfinance institutions etc. The means of dialogue, exchange and knowledge sharing is done both on-line and off-line, and off-line knowledge exchange includes conferences and publications (see graphic 9) Output 1: Expert Forums A core instrument to the on-line exchange platform is the Expert Forums. These Forums are highly interactive online meetings of microinsurance experts, which aim to facilitate experience and knowledge sharing on key microinsurance issues, particularly those of with cutting edge insights falling within the Network s strategic framework. Members, member groups, the Board or the Secretariat, even non-members can suggest topics for the Expert Forums. Ideas may emerge through the working environment; from colleagues; new items or other data centres and are forwarded as topic proposals to the Secretariat. The Secretariat will filter the topics based on whether the application matches the strategic framework; whether it is a cutting edge topic and 21

30 whether it adds value to a larger group of members. Other considerations in the selection of topics include whether there is a linkage with other Network events; the availability of resource persons and whether it fits within the schedule (see also graphic 10 below). Follow-up products of the Expert Forums discussion include blogs, articles and other write-ups, slide series to name a few, and the dissemination format is aligned and targeted to insurers, donors, academics and policy makers among others. The information output of an Expert Forum can also be used as inputs for regional meetings, research and position papers, projects, other Network activities or may result in the formation of ad hoc Expert Groups. Additional outputs from the Expert Forums as noted in Graphic 10 are also possible. After an initial trial period where the format and content is tested, the Network will look into the possibility whether it can introduce a payment system for non-members to honour the commitment of its members and make the initiatives self-financing. To materialize all this, the Secretariat will develop further the Expert Forum concept and priority topics through consultation with membership and Board. The Secretariat will also increase awareness and demand for Expert Forums through offering free registration to members and non-members alike for 22

31 preliminary Forums. Once the value of Expert Forums is recognized, the Network will consider introducing payment system for non-members Output 2: Website and Social Media The Microinsurance Network website constitutes an entry point to the members and for those new to the sector and is a point of reference for the regulators, donors, insurers and practitioners active in the field. The website provides an introduction to the microinsurance sector and the Network and highlights the activities of the Network and its members. It also hosts an online microinsurance library with over 400 publications, and members as well as non-members can post microinsurance jobs. The Website has an events section, and a blog section on cutting-edge microinsurance topics. The Network social media platforms on LinkedIn, Facebook and Twitter are geared at amplifying the reach of the Network s communication activities, advertising Network and Network member s activities, and directing readers to new content on the Network website. Building upon the work done in recent years, in the period the Network Secretariat will work on further increasing the reach of the Network communication activities by developing the underlying database enabling targeted communication strategies and an easy processing of payments for events and membership fees Output 3: World Map of Microinsurance The World Map of Microinsurance (WMM) is one of the more appreciated on-line knowledge sharing instruments of the Network. It is often an entry point for many who want to start or expand a microinsurance portfolio. The WMM is also an excellent recruiting tool as well as a branding tool for the Network. It is an excellent way to gain exposure and attain other goals. The WMM has maps per continent and countries that displays different ratios such as health care ratio, accident, property, agriculture and credit life ratio among others. Also different landscape studies can be downloaded. Every three years the microinsurance information per continent is updated through special microinsurance landscape studies, sub-contracted to a consultancy firm. While the World Map of Microinsurance is a very much-appreciated service, at the same time it is a very expensive service and there are challenges to maintain and even improve the quality of data and information of this World Map of Microinsurance. Members attach high value on a deepening of the information presented, more than updating the data. And whilst the Microinsurance Landscape studies are critical, they must be fully self-funding. To meet the expectations of the members, the information on the World Map will be expanded and the World Map will introduce new features to facilitate comparison with benchmarks and centres of excellence ; information on the situation of regulation and supervision per country and the like. This way insurance members can better position their portfolio and learn from other insurance companies (excellence centres) and donors can consult the WMM to see trends and gaps in regulation and supervision, as well as use the information for their microinsurance programmes. 23

32 Further to ensure a continuation of the World Map of Microinsurance, the Network will reduce the expensive primary data gathering and instead will use more secondary data. The World Map will try to get access to information from other networks such as ALASA (alasa-web.org) that already produce a map for the Latin America and Caribbean area. Also the Network will explore a partnership with GFIA to continue this service, but at a less cost and requiring fewer human resources for the Secretariat. To expand and improve the World Map, the Network wants to learn from other on line platforms (e.g. the MIX market) in terms of organizational and HR requirements, budget and funding. It also means that the Network must convene meetings with all interested parties to agree on definition, outputs, access, timing of data collection and how the results will lead to changes in depth and update. Finally, the Network will seek sponsorship from members and/or donors to keep and improve the World Map Output 4: June Member Meeting The June Member Meeting (JMM) is the annual meeting for the members of the Network to gain insights into key areas of development in the sector; participate in discussions on topical issues in a relaxed and friendly professional environment, and connect and develop personal relationships with important players in the field. The JMM agenda aims to strike a balance between content driven sessions, in depth discussions, and exchange of information through more informal networking activities. The June Member Meeting is highly appreciated, but only a limited number of members can (financially) afford to attend. It is organized in Königstein, Germany, but the plan is that henceforth future JMM will be held in different regions of the world on a rotational basis in order to give all Network members the opportunity to attend. The organization of the JMM remains a cost activity, but some costs will be recuperated through better sponsorship of this event (see also chapter 7) Output 5: International Microinsurance Conference The annual International Microinsurance Conference (IMC) brings together over 400 delegates from around the world and from a range of institutions and companies to exchange experiences and discuss challenges and solutions of extending insurance services to low-income people. Since 2005, Munich Re Foundation, in collaboration with the Microinsurance Network, has organized the conferences across continents on a rotational basis, so as to make participation accessible to key stakeholders across the world. While the IMC requires substantial preparations for the Secretariat and in terms of human resources, in terms of financials, it has limited impact. Most of the costs are shouldered by the Munich Re Foundation. At the same time the limited financial implications for the Network is combined with a good exposure of the Network and thus the IMC offers a good member recruitment opportunity. On the other hand, with the MRF as the main contributor of the IMC, this event does not offer sponsorship opportunities for the Network. This arrangement will change; by the end of this 5-year strategy plan the IMC will be completely under the control of the Network. Preliminary discussion with the Munich Re Foundation hinted that they want to move from the lead in these to a supporting role behind the Network. The Network will start discussion early 2017 with the MRF how this transfer of responsibilities and ownership will take place. Once the 24

33 transfer has taken place, the IMC opens up opportunities for the Network for income generation through sponsorship and fee income from the participants Output 6: Regional Conferences The Secretariat will allocate more resources towards organising content-driven events such as regional workshops. Regional workshops are a new initiative of the Network that has been successfully launched in September 2016 with a regional workshop in Johannesburg, South Africa. As far as possible such workshops will be organized alongside other events and will typically take the form of a 2-day intensive, interactive seminar on key issues particularly pertinent to the country and region in which it is held. Therefore, preparatory activities include: 1. Identify the needs of industry in different countries and regions 2. Identify the needs of industry in different countries and regions 3. Develop high-quality content that matches the knowledge gaps in the host countries 4. Develop funding mechanism to make regional workshops revenue drivers Output 7: Other exchange opportunities The Network will organise field trips with a discount for members. The aim of these field trips is to cultivate an in-depth understanding of the microinsurance business, provide networking and knowledge sharing opportunities and offer robust knowledge of key microinsurance issues. To make field trip successful, the Secretariat will identify key knowledge gaps sought to be filled by industry and organise logistics, content, partners and participants for the field trips. After the pilot phase, the Secretariat will also develop a replicable format for field trips to be rolled out in a number of countries. Field trips will be funded through attendees fees and/or sponsorship and should be a source of future revenue for the Network. Finally, the Network will organise South-to-South exchanges as a fee-based service to its members. Upon understanding the needs and capacity gaps of a member institution, the Network will organise for representatives of this member institution a visit to another institution, which has overcome such issues, as a way of providing a platform for knowledge exchange and networking. To make this initiative successful, the Secretariat will identify needs and demands from member institutions and use the data to organise exchange visits. Further the Secretariat will develop a learning concept and itinerary for the exchange and propose a funding mechanism to make South-to-South exchanges revenue drivers for the Network. The aim is that in time, the Secretariat will focus on making all the above mentioned Network s events revenue-drivers Output 8: Landscape Microinsurance Studies To support the development of the microinsurance sector, reliable and usable data is needed. Access to data generates market knowledge, facilitates market development, furthers best practices and can lead to better products and services. The landscape studies, initiated by the Munich Re Foundation in 25

34 collaboration with the Microinsurance Centre, the ILO s Microinsurance Innovation Facility and other organisations, have addressed this need by supporting tri-annual regional studies and an online database. The landscape studies have shown that microinsurance in its various forms is expanding significantly (for example over 200% growth in Africa between 2005 and 2011). However, the quality of that expansion in terms of product value, market fairness, profitability, social protection, and other objectives is still unclear. There is a need for all parties working in microinsurance to better understand these issues to ensure quality provision to people with limited means, as well as to identify potential market opportunities. In 2014, the Microinsurance Network has successfully finalised a first regional update in collaboration with the Microinsurance Centre and with the financial support of the Munich Re Foundation, the World Bank Group, Bradesco, CNSeg and the Inter-American Development Bank (IADB). In 2016, the Microinsurance Network published the Landscape of Microinsurance Africa 2015, conducted by the Microinsurance Centre and co-funded by Making Finance Work for Africa and Munich Re Foundation. The Microinsurance Network is planning to continue developing these unique regional studies not only on demand from its members, but also from support by the international (micro) insurance community. The Network will issue a call for funding, prior to embarking onto a call for tender, consultant selection, study commissioning, data collection and support. The plan is to do the call for funding in December, prepare a call for tender and select the consultant in March. The ambitious goal would be to have the data ready for the International Microinsurance Conference in November, even though the whole publication would not be printed and distributed before June Output 9: The State of Microinsurance The State of Microinsurance is annual magazine coordinated and published by the Microinsurance Network, which provides data and experience-driven insiders' perspectives on key issues and trends in microinsurance. The first edition of the magazine was published in 2015 and was downloaded 565 times with positive acclaim from sector experts. The second edition published in June 2016, was downloaded over 600 times in the first two months of release only. The magazine provides articles on new developments in microinsurance, country perspectives, and features a debate-type discussion between microinsurance experts having diverging views on a specific subject. It also includes interviews with prominent experts in the sector. Before embarking on authors selection and preparing the questions for the debate and the interviews, a call for sponsorships is organised in October- November to attract funding for the magazine. The sponsorship is divided into two types: magazine sponsorship (from 3,000 to 6,000) and content sponsorship for promotional purposes ( 9,000) Output 10: Other Publications of Articles and Books The Microinsurance Network will concentrate more on discussion papers and less on research and position studies. Some of these discussion papers will be online, other will be published. All Expert Forums for instance will produce at least a transcript or will result in a summary document to facilitate transmission of the ideas generated. 26

35 It follows that other publications and articles that explore cutting edge microinsurance issues will be given less priorities. This is due to lower demand from the members. As far as in-depth research will be carried out and published, these are made conditional to securing upfront external funding from contractors and/or sponsors. Whilst the Microinsurance Network is an impartial platform representing a range of diverse opinions and interests, it is key that it continues to produce position papers in order to ensure the integrity of its vision, mission and values. These are particularly important around issues that involve consumer protection and expanding product range. Position papers will continue to be produced by the Secretariat with no expectation of being revenue-drivers. 27

36 Priority Address key knowledge gaps More insurers enter the microinsurance space Table 3: Theory of Change Matrix for Increased and Improved Supply of Providers and Products Key target Entry point to Steps needed to bring about Measurable Wider benefits audience reach audience change effect of work of work On-line exchange 1. Identify the knowledge gaps >80% Positive Increased of information of members, both generally feedback from number of new including Expert and to specific organisations members membership Forums and World regarding applications Map of 2. Gauge optimal channel Network Microinsurance; through which to address this knowledge High retention off-line events gap outputs rate maintained such as Successful conferences, 3. Identify champions launching of new publications already well-acquainted with microinsurance particularly The these issues willing to share products State of knowledge Demand for these Microinsurance; products/services landscape studies is maintained at and discussion high levels papers Network members Commercial insurers Advocacy, presentations and representations at industry conferences 4. Coordinate the sharing of this knowledge, particularly regional events for insurance providers to exchange experiences and contextspecific learnings 1.Identify key reasons why insurers have not yet entered this space 2. Identify key conferences with high attendance of commercial insurers, as well as other relevant communication channels through which to reach these institutions % increase in providers entering the space Increased number of industry members entering the Network => more value for existing members Long-term change foreseen The Network brand is associated with high quality and cutting edge knowledge dissemination The Network brand is associated with high quality and cutting edge knowledge dissemination 28

37 Increased number and quality of products on the market Insurers already operating in the microinsurance space World Map of Microinsurance to provide data underpinning business case for various products, Expert Forums showcasing successful examples 3. Develop strategy for promoting microinsurance through these channels as well as persuasive approach to countering their concerns 1.Identify which products have high benefits but are still not sufficiently implemented by a variety of insurers 2. Develop comprehensive business case for these products based on WMM data and case studies of champions 3. Disseminate this information and lessons learned through Expert Forums and other communication channels % increase in various products % increase in number of products offered by different insurers Domino effect of more insurers entering the market with diverse product range Improved evidence base for the usefulness of microinsurance as a development/ risk mitigation tool if product diversity equates to higher take-up 29

38 5.3. Appropriate Regulations and Supervisions for the Microinsurance Providers Regulators and Supervisors at the international and national levels stimulate or sometimes hinder the provision of insurance services and protect clients A well-functioning policy and regulatory environment is critical to the successful expansion of insurance to the unserved. The Network is in an excellent position to assimilate the views of industry stakeholders and communicate on their behalf to policy makers at global and national levels. The Network plays an important role in this regard by offering opportunities for access to regulators and for its members views to be represented in such discussions. Ultimately, the Network aims to catalyse beneficial policy decisions. The Network has formed a strategic alliance with the International Association of Insurance Supervisors (IAIS) and the Access to Insurance Initiative (A2II). The IAIS represents insurance regulators and supervisors of some 190 jurisdictions in nearly 140 countries, most of them in the emerging markets and developing countries, and accounts for 97% of the world s insurance premiums. The IAIS issues global insurance principles, standards and guidance papers, provides training and support on issues related to insurance supervision, and organises meetings and seminars for insurance supervisors. The Access to Insurance Initiative (A2II) was created in response to demand for learning, lessons and guidance on access to insurance from insurance policymakers, regulators and supervisors. 30

39 Jointly the Microinsurance Network, the IAIS and A2II work on an enabling environment for the microinsurance sector through the Consultative Forums. However, the Network also provides technical background inputs in draft papers of IAIS and is an active member of two IAIS Financial Inclusion Working Group subgroups, namely on Product Oversight and Technological Innovation. The Network will continue to collaborate with the A2ii and IAIS in organising the tri-annual Consultative Forums, which provide a unique and highly valuable platform for regulators, supervisors and industry to exchange perspectives on key regulatory issues and advocate for more enabling regulatory environments. Further the Network wants to strengthen the relationship with A2ii and IAIS through a formalised strategic alliance agreement. The benefits for the members of this strategic alliance include: Upscaling and diversified conference participants Access to regulators/supervisors Members and the Secretariat can provide inputs to A2ii and IAIS deliberations relating to microinsurance to their Subgroups and drafting groups, influencing good for members and improve visibility. Opportunities to relay industry perspectives to regulators/supervisors in Consultative Forums. Possibilities to provide other inputs to A2II and IAIS (internal) deliberations relating to microinsurance. 31

40 Opportunities to participate in appropriate working groups and where possible to provide direct inputs representing membership Of all the different global platforms, only the Global Federation of Insurance Associations (GFIA) is considered a strategic alliance for the Network. GFIA represents 40 insurance associations and accounts for 87 percent of insurance premiums worldwide. This platform is of strategic importance because it makes it possible for the Network to attract new members, foster an industry dialogue and explore funding opportunities for joint programming. For instance, the Network can work together with GFIA in maintaining and improving the World Map of Microinsurance. Cooperation with this and other institutions generally can support and improve the financial situation of the Network. GFIA also hosts a Financial Inclusion Working Group, under Mexican leadership which supports market development activities. Strengthening the collaboration of the Network with GFIA promotes industry awareness, fosters best practices, peer to peer learning and pilots on the ground. The Network aspires to formalise the cooperation with GFIA through a Memorandum of Understanding or other type of agreement. Especially the strategic alliances with GFIA will enable the Network to expand the reach of the Network and offer grant opportunities (e.g. grants for thematic research). 32

41 Priority Regulators/supervisors are proactive in creating an enabling regulatory environment Insurers are more proactive in taking steps to ensure consumer protection, with or without regulatory incentive Table 3: Change Methodology Matrix for Appropriate Regulations and Supervisions for the Microinsurance Providers Key audience Entry point to Steps needed to bring about Measurable Wider benefits Long-term change targeted reach audience change effect of work of work foreseen Regulators, supervisors and industry All types of insurers Consultative Forums, Expert Forums, contribution to the programme of the IAIS Financial Inclusion Working Group Expert Forums, Consultative Forums 1.Identify champions of enabling regulatory environments such as the Philippines 2.Identify key countries with a growing microinsurance market experiencing regulatory difficulties 3. Strengthen and formalize relationship with IAIS and A2ii to provide open channel to regulatory and supervisory bodies 4. Disseminate lessons learned and facilitate industry-regulator dialogue on creating an enabling environment 5. Increase the number of regulators in the Network 6. Promote core messages on global platforms such as the G20 GPFI 1.Identify ways in which industry can be proactive in ensuring adequate to high consumer protection 2. Develop persuasive case for how competent consumer protection can positively affect the business case. 3. Identify champions to share their knowledge and experiences in Expert Forums, Consultative Forums and other content-driven events More regulators join the exchange platform services of the Network Target countries demonstrate regulatory changes perceived by the risk takers as positive within five years Targeted insurers implement enhanced consumer protection measures within five years. Increased number of insurers become members of the Network owing to access to regulators provided to them Regulators gain enhanced understanding of industry perspectives More insurers are proactive in consumer protection for A globally improved regulatory environment with proportional regulation that facilitates microinsuranceprovision and incentivizes the involvement of more insurers whilst maintaining high levels of consumer protection More insurers take the initiative to improve consumer protection, leading to globally enhanced protection, decreased burden on regulators and increased uptake of products owing to word-of-mouth of positive experiences 33

42 Regulators are more aware of the cost of regulatory requirements around consumer protection and other microinsurance issues 4. Relay messages from regulators and supervisors to industry on how industry can be more proactive through various communication channels branding purposes 34

43 5.4. Leveraging Acknowledgement of Microinsurance as a Key Risk Mitigation Tool for the Unserved on Global Platforms To achieve its mission and outcomes, the Microinsurance Network needs to engage in partnerships to leverage the capacity of its members. Some of these partnerships are already set up, some need deepening and new ones need to be established. For many years the Microinsurancenetwork has managed to put microinsurance on the agenda of global platforms such as G-7; G-20 GPFI, APEC and others and has participated in international bodies addressing key microinsurance issues. Among others because of the advocacy role of the Network, these platforms have acknowledged that microinsurance is a mitigating tool for the poor and unserved and make them more resilient against various risks. Now it is time to leverage this acknowledgement at Global Platforms and ensure that microinsurance has a role to play in strategies, plans and interventions to combat amongst others the consequences of climate change, reduce poverty and attain sustainable development. For a long time, the microinsurance sector struggled to evolve and expand because it did not receive the global recognition it needs, that microinsurance as a vital risk mitigation tool of the poor and unserved. This has changed thanks to advocacy amongst others of the Network in putting microinsurance on the agenda of global platforms and through the proactive involvement of the Network at international and multilateral organizations and various governments. The Network s contribution played a crucial role in incentivizing the involvement of commercial providers in microinsurance, advocating for the incorporation of microinsurance in national and international agendas, strategies and funding initiatives that enhanced demand and taking-up of microinsurance. The Network has demonstrated leadership in advocating for microinsurance on global platforms. For instance, the Network has established strategic alliances with the Global Partnership for Financial Inclusion (GPFI -a G20 initiative). The Network became an affiliate member of the GPFI and in particular is active in the Subgroups on Financial Consumer Protection and Financial Literacy and its Subgroup on SME Finance. The Network also contributed -through CGAP 1 - in the drafting of a White paper of the Subgroup on Regulation and Standard-Setting Bodies in The title of the paper is: Global Standard- Setting Bodies and Financial Inclusion for the Poor- Toward Proportionate Standards and Guidance. The acceptance of the Networks membership in GPFI has confirmed the importance of microinsurance in the arena of financial inclusion and enabled a high visibility with the G20. The membership also was and still is an opportunity to influence policy decision and enabled the Network putting microinsurance on the high policy level agenda. The Microinsurance Network will continue to strengthen the engagement in partnerships and this way leverage the capacity of its members. By deepening cooperation with other organisations, the Network can provide its members access to information and influence power. This should -in turn- contribute to 1 Consultative Group to Assist the Poor, a global partnership of 34 leading organisations that seek to advance financial inclusion. 35

44 enhancing expertise in the microinsurance sector and leads to better-informed and experienced actors in the sector, contributing to good decisions for their clients. To leverage acknowledgement of microinsurance as a key risk mitigation tool for the unserved on global platforms, the Network will set up partner concepts and criteria for cooperation and participation. The Network will also align its priorities and focus with that of global forums such as G-20; G20-GPFI; G-7, APEC, Climate change groups and others. At the same time the Network wants to continue influencing their agenda; address key microinsurance issues; assist with practical guidance in other microinsurance issues, promote stronger opportunities for the microinsurance sector -in particular the microinsurance industry- and push for issues important to its members. The Network thus continues aspiring to change regulations and policies and have its members play a prominent role in combating the consequences of climate change, poverty reduction and sustainable development. Establishing and expanding new partnerships is a means towards this goal, but the Network will remain an impartial and neutral organization. The Network will guard and strengthen its ability to enable dialogues and offer multiple perspectives on key issues. Especially because of the multistakeholder nature of the Network, the Network cannot lobby for any one group, but rather relay and communicate the opinions and objectives of one group to another. On some controversial statements, the Network may have to highlight and offer diverging opinions and openly admit they are not all 36

45 reconcilable. The Network s role is not to choose sides, rather to remain impartial and ensure they add value and expertise. In other words, though the Network lobbies, it maintains a balancing act between advocacy and lobbying. The Network can offer perspectives and opinions without them being representative of the Network s own perspectives. The Network has always been an influential organization and will continue to be one, but the difference between influence and representative influence is important. 37

46 Table 4: Change Methodology Matrix for Levering Acknowledgement of Microinsurance as a Key Risk Mitigation Tool for the Unserved on Global Platform Priority Key audience targeted Entry point to reach audience Steps needed to bring about change Measurable effect of work Wider benefits of work Long-term change foreseen Increased awareness of microinsurance on global platforms Global platforms G20-GPFI, G7 APEC More money will be allocated to the sector and the Network will flourish 1. Every year identify the main global platform events and prepare a short-list which may have the bigger impact or are most important for the Network to attend 2. Prepare short background papers that can be distributed and discussed during these platforms 3. Secure an internal budget for representation at high level meetings 4. Secure speaking opportunities 3. Attend Global platforms and participate in thematic discussion rounds Increase in inclusion of microinsurance in broader discussions around financial inclusion, disaster risk management and resilience on global platforms More visibility and global acknowledgment leads to understanding of funders for the importance of the sector 38

47 5.5. A Performing and Sustainable Network In order to successfully achieve the first three outcomes, the Network must become a sustainable organisation. It is important that the Network operates efficiently by focusing on achieving specified outcomes and outputs. It is also important that the Network secures long-term and diverse funding and is not over-reliant on one source of income. Furthermore, in order to increase membership, and thus funding and relevance, it is vital that the Network continues to source new and highly relevant ways of supplying members with valuable, high-quality and exclusive benefits. The Secretariat is tasked with designing its key outputs across the board to be as valuable as possible for its members. Alongside the general benefits, it will also seek out ad-hoc benefits and privileges for its members, such as discounts for conferences and publications etc. Furthermore, real value will stem from the Secretariat s work delving into the operations and needs of its members, in order to potentially fill knowledge gaps and identify strategic partners within the membership. The Secretariat and Board will also prioritise sourcing alternative revenues of funding, including redesigning outputs to be profitable, sourcing new core funding partners, and driving up the percentage of income generated from membership fees. With more income, the Secretariat will in turn have more possibilities to provide benefits to its members and grow as an institution Output 1: Regionalization of Office Services Regionalization of the Network operations among others means recruiting staff from the South, who operate from the South and with the Secretariat providing logistical support to the staff. Further regionalization means organizing regional conferences with topics and themes relevant to the stakeholders in these regions. Staff recruited from the South and stationed in the South will have the following job description and responsibilities: Enrol new members of the region and retain the current members; Develop a regional Network Exchange, the electronic bulletin that is disseminated every week; Arrange local Experts Forums and organize regional conferences; Co-organize/support the June Member Meeting whenever it is organized in his or her region; Give support to the International Microinsurance Conference and the Consultative Forums, whenever it is organized in his or her region; Develop and/or share publications and organize the translations into Spanish or French (whatever is applicable); Help collecting data for the regional microinsurance landscape/co-manage the microinsurance landscape studies; Advocate on behalf of the Network with regional regulatory authorities, for example, the Association of Insurance Supervisors of Latin America (ASSAL) in case of the LAC Keep permanent contact with the insurances associations of the region. Co-organize the General Assembly meeting when it is organized in his or her region. Suggest to the CEO an annual regional strategic plan. 39

48 Report to the CEO periodically. The idea is to have one microinsurance expert based in the LAC region; one in Africa and one in Asia. Regionalization does not necessarily mean opening full-fledged, legally registered country offices in the South. This in turn means that staff in the regions will have a consultancy contract only, which will be renewed every year upon meeting the targets. The idea is that the regionalization is a self-financing exercise and thus that the costs associated with the regionalization will be covered by additional membership income (new members and higher retention rate of existing members) and net income from regional events Output 2: Efficient and Effective Back Office Operations The improvement of the back office operations, relies much on the use and application of the CiviCRM software. CiviCRM is a customer relationship management software. The software automatically stores all data for each contact in one place and therewith creates a unified holistic record for each member. Individual members can sign up and pay for their membership online, receive automatic membership renewal reminders and receive member-only s. The software makes it possible to export data in the required accounting format of the Network. Once all data has been inputted, CiviCRM allows the Network to create, manage and track management workflows and provides a full set of tools for running events 40