LANDSCAPE OF DONOR ACTIVITY IN MICROINSURANCE

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1 LANDSCAPE OF DONOR ACTIVITY IN MICROINSURANCE Henk van Oosterhout, Interim Executive Director, Microinsurance Network Study: Liz McGuiness, LMG Consulting, for the Microinsurance Network

2 Connect. Participate. Influence The Microinsurance Network The global multi-stakeholder platform for microinsurance industry & experts 80 institutional members > 40 countries

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4 The World Map of Microinsurance - Health

5 The World Map of Microinsurance - Agriculture

6 Objectives of the donor landscape study 1. Identify interventions with details since Place interventions in terms of objective, method, funding, and development areas 3. Establish patterns and trends in this landscape 4. Suggest key areas of focus emerging from these patterns 5. Identify global trends 6. Identify donors who are interested in collaborating to develop new donor guidelines on microinsurance

7 Number of Institutions Background information survey donor institutions were contacted 20 Donors completed survey Members Non-Members Invited Responded Completed

8 PORTFOLIOS

9 Median value of grants in range USD 100, ,000 (2015) $50m. and above $25m.to $49.9m. $5m. to $24.9m. $1m. to $4.9m. $500,000 to $999,999 $100,000 to $499,999 $25,000 to $99,999 under $25, Number of Donors n=14

10 Number of Donors (n=18) Projected annual value of MI grants for Increase significantly Increase some Remain the same Decrease some Decrease significantly N/A Chart does not include 1 donor which will discontinue MI funding after 2015.

11 REGIONS, PARTNER ORGANIZATIONS AND SECTORS RECEIVING DONOR SUPPORT

12 Number of Respondents Geographical areas receiving donor support Actual 2011 to 2015 Expected 2016 to

13 Number of Respondents Partner organizations receiving donor support Actual 2011 and 2015 Planned 2016 through 2018

14 Number of Respondents Insurance product support Actual Planned

15 OBJECTIVES OF DONOR INVOLVEMENT

16 Ranking of Objective Donors objectives in supporting MI Stimulate demand for MI Encourage supply of MI Build the market infrastructure for MI Advance enabling Promote research Provide global or & protective & evidence regional policy building for MI coordination for environments MI

17 Ranking of Objective Trends in donors objectives in supporting MI Stimulate demand for MI Encourage supply of MI Build the market infrastructure for MI Advance enabling Promote research Provide global or & protective & evidence regional policy building for MI coordination for environments MI

18 Donor s perception of their role in MI Market systems approach or broad support 12 Supply of microinsurance 8 Demand for microinsurance 7 Enabling and protective policy environments 6 Global or regional coordination for 4 Research and evidence building for 4 Market infrastructure for microinsurance 4 Other 2 Number of Donors (n=16)

19 Side Internal Challenges Other Lack of Rationale/Evidence Low priority Supply Side Demand Lack of farmer awareness/ understanding Local Enabling Environment Product Constraints Lack of expertise Lack of suitable projects Lack of Suitable Partners Lack of Demand from Partners Number of Mentions

20 PRIORITY SECTORS AND PRODUCTS

21 Number of Donors (n=17) Donors support of MI as part of an overall development goal Financial Inclusion 12 Agriculture Health Social Protection 8 9 Disaster and Risk Reduction 8 Climate Change 2 Other

22 Number of Donors Projected donor support in MI as part of an overall development goal between 2015 and Financial Inclusion Agriculture Health Social Protection Disaster and Risk Reduction Climate Change Other

23 Development sectors of increasing importance in next 3 years Disaster & RR Agriculture Health Climate Change TRENDS Inclusion of Agriculture as a core sector means that we expect greater attention to this area. There are increasing concerns about adaptation to climate change amongst our partners (AFD) Strong (political) focus on climate risk insurance. (GIZ) Note: The lower the number the higher the rank

24 Development sectors of decreasing importance Financial Inclusion 2.3 Social Protection Other 7.0 Note: The lower the number the higher the rank

25 Priority sector : Agriculture Ag insurance is a major factor in farmers accessing finance 9 institutions ranked agriculture #1 priority Median amount committed is higher Most plan increased funding in 2016 A few will increase significantly

26 Priority sector : Financial inclusion 3 institutions ranked FI #1 priority MI portfolios tend to be smaller Funding flat this year, will increase some in 2017 & 2018

27 Priority sector : Climate change 2 donors ranked climate change #1 priority Funding expected to increase some in 2016, and then remain steady

28 Areas of opportunity: Other 5 Agricultural Insurance 7 Scaling 2 Products Livestock 1 Index Ins. 3 MI General 1 Health 4 Regulatory and Supervision Support 5 n=34 Property 1 Disaster Risk Finance 1 Climate Change 2 Digital Insurance 2

29 Key takeaways Donor landscape: dynamic and growing Donor objectives: shifting from (1) supporting supply and (2) promoting research & evidence building (1) advancing the policy and protective policy environments and (2) building market infrastructure Donor strategies: Movement toward market system development strategy Caveat: Low response rate & absence of some important donors.

30 Key takeaways Sectors with increasing support: agriculture, climate change, disaster and risk reduction and health. However, financial inclusion will still be #2 sector Products with increasing support: Livestock, health, property, and disability. Lower income countries increasingly emphasized. Selected African nations - prioritized by donors with country specific strategy. Donor funding for MI poised to increase. Agricultural Insurance will be the most dynamic area: Crop, livestock, index insurance, etc.

31 Connect. Participate. Influence THANK YOU Microinsurance Microinsurance-Network