LANDSCAPE OF DONOR ACTIVITY IN MICROINSURANCE Henk van Oosterhout, Interim Executive Director, Microinsurance Network Study: Liz McGuiness, LMG Consulting, for the Microinsurance Network
Connect. Participate. Influence The Microinsurance Network The global multi-stakeholder platform for microinsurance industry & experts 80 institutional members > 40 countries
The World Map of Microinsurance - Health
The World Map of Microinsurance - Agriculture
Objectives of the donor landscape study 1. Identify interventions with details since 2011 2. Place interventions in terms of objective, method, funding, and development areas 3. Establish patterns and trends in this landscape 4. Suggest key areas of focus emerging from these patterns 5. Identify global trends 6. Identify donors who are interested in collaborating to develop new donor guidelines on microinsurance
Number of Institutions Background information survey 120 118 donor institutions were contacted 20 Donors completed survey 100 80 60 40 98 20 20 14 12 11 8 0 Members Non-Members Invited Responded Completed
PORTFOLIOS
Median value of grants in range USD 100,000-499,000 (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 $25,000 1 2 3 3 5 0 1 2 3 4 5 6 Number of Donors n=14
Number of Donors (n=18) Projected annual value of MI grants for 2016-2018 9 8 7 6 5 4 3 2 1 0 Increase significantly Increase some Remain the same Decrease some 2016 2017 2018 Decrease significantly N/A Chart does not include 1 donor which will discontinue MI funding after 2015.
REGIONS, PARTNER ORGANIZATIONS AND SECTORS RECEIVING DONOR SUPPORT
Number of Respondents Geographical areas receiving donor support 14 12 Actual 2011 to 2015 Expected 2016 to 2018 10 8 6 4 2 0
Number of Respondents Partner organizations receiving donor support 16 14 12 10 8 6 4 2 0 Actual 2011 and 2015 Planned 2016 through 2018
Number of Respondents Insurance product support 14 12 10 8 6 4 2 0 Actual 2011-2015 Planned 2016-2018
OBJECTIVES OF DONOR INVOLVEMENT
Ranking of Objective Donors objectives in supporting MI 8 2011-2015 7 6.88 6.62 6.83 6.93 6 5.88 5 5.00 4 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
Ranking of Objective Trends in donors objectives in supporting MI 8 2011-2015 2016-2018 7 6.29 6.88 6.88 6.92 6.62 6.83 7.07 6.93 6.58 6 5.88 5.40 5 5.00 4 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
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)
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 0 1 2 3 4 5 6 Number of Mentions
PRIORITY SECTORS AND PRODUCTS
Number of Donors (n=17) Donors support of MI as part of an overall development goal 16 14 12 10 8 6 4 2 0 15 15 Financial Inclusion 12 Agriculture Health Social Protection 8 9 Disaster and Risk Reduction 8 Climate Change 2 Other
Number of Donors Projected donor support in MI as part of an overall development goal between 2015 and 2018 16 15 15 15 15 14 12 12 10 8 6 9 8 6 9 7 8 8 4 2 2 3 0 Financial Inclusion Agriculture Health Social Protection Disaster and Risk Reduction Climate Change Other
Development sectors of increasing importance in next 3 years 2011-2015 2016-2018 1.0 2.2 3.7 3.9 4.5 Disaster & RR Agriculture Health Climate Change 1.0 2.0 3.0 3.3 3.4 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
Development sectors of decreasing importance 2011-2015 2016-2018 1.7 Financial Inclusion 2.3 Social Protection 3.8 3.8 6.5 Other 7.0 Note: The lower the number the higher the rank
Priority sector 2016-2018: 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
Priority sector 2016-2018: Financial inclusion 3 institutions ranked FI #1 priority MI portfolios tend to be smaller Funding flat this year, will increase some in 2017 & 2018
Priority sector 2016-2018: Climate change 2 donors ranked climate change #1 priority Funding expected to increase some in 2016, and then remain steady
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
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.
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.
Connect. Participate. Influence THANK YOU Microinsurance Network @NetworkFlash Microinsurance-Network