Microinsurance und FSE

1
Managing Risk in Financing Agriculture 1-3 April
2009, Johannesburg, South Africa Working Group
A Microinsurance as a Risk Management tool in
Rural Areas
Dr. Brigitte Klein, Financial Systems
Development, German Development Cooperation
(GTZ) and Federal Ministry for Economic
Cooperation and Development (BMZ)
2
What is Microinsurance?

• Microinsurance is
• insurance accessed by low-income people
• provided by a variety of institutions
• run in accordance with generally accepted
  insurance core principle
• funded by premiums

3
What is Microinsurance? (2)

• Microinsurance is
• a financial services, besides savings, credit and
  cashless payments which the poor use to manage
  their risks
• closely linked with other financial services via
  clients, products, insurers, intermediaries,
  policy decision makers, regulation and national
  strategies
• a strategic tool for different development
  agendas (pro-poor financing, agricultural and
  rural development, social security development,
  mitigation of climate change)

4
Major Risks in Rural Areas

• Major Risks that are insurable
• 1. Illness and injury HIV/AIDS, Malaria and
  Tuberculosis, accidents
• 2. Death loss of life (accidental and other
  reasons)
• 3. Loss of assets and production due to harsh
  weather effects (droughts, flooding, storm), and
  other risks such as theft and fire

5
Potential Impact of Microinsurance in Rural Areas

• Microinsurance can
• help to reduce vulnerability of rural households
  and mitigate the perils threatening their lives,
  productivity and assets
• assist in promoting investment and productivity
  by securing the lending risk for agricultural,
  investment
• support asset building by securing housing loans
  and helping to avoid that savings and other
  assets are depleted in case of an emergency