micro insurance article

8/3/2019 Micro Insurance Article

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Source: http://www.thejakartapost.com/news/2011/10/29/growth-needs-simpler-products-and-marketing.html

Growth needs simpler products and

marketingLinda Yulisman, The Jakarta Post, Jakarta | Sat, 10/29/2011 8:00 AM

The local insurance industry must design simple products with affordable pricingand use appropriate distribution channels to promote micro-insurance, whichcould potentially cushion the majority of the countrys low income population,financial stakeholders have said.

World Bank senior insurance specialist Vijayasekar Kalavakonda said thatdistribution channels were still the biggest hurdle to marketing micro-insurance tolow income clients.

A lot of micro-insurance target-clients primarily work in the informal sector andthus have no employer-based wage rolls. How to sell is the biggest challenge,he told The Jakarta Post on the sidelines of the Microfinance Marketplaceseminar on Wednesday.

World Bank data shows that between 60 and 65 percent of the Indonesianworking population is dependent on the informal sector for their livelihood, 40percent of whom work in the agricultural sector.

More than 50 percent of Indonesians live on less than US$2 per person on adaily basis and more than 80 percent live on less than $4, meaning that thepossibility of falling into poverty is very high.

However, more than one-third of the population, or around 77 million, still do nothave access to financial protection.

Vijayasekar said that the industry might look again at traditional methodsemployed in the insurance business, including insurance agents and brokers,and shift to new approaches, including the use of community organizations ormobile phones.

The Indonesian Insurance Council (DAI) chairman Kornelius Simanjuntak raisedanother problem, saying that most existing insurance products currently could notpenetrate the low-income segment, especially in rural areas, as they were toocomplicated.

People in rural areas whose livelihood depends on agriculture really needprotection from various risks, such as harvest failure and disasters, but currentinsurance products dont suit them due to complicated policies, he told reporters.
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According to Kornelius, the insurance companies could reach the masses in ruralareas with micro-insurance products with simplified contracts and affordableprices.

Isa Rahmatawarta, head of insurance unit at the Capital Market and Financial

Institution Supervisory Agency, acknowledged that pricing, contracts anddistribution channels had been major concerns in developing micro-insurance inthe country.

Right now, he said, his agency was drafting a regulation that would, among otherthings, deal with micro-insurance arrangements.

The crucial things are pricing and distribution. The main concern of theregulation will be whether the pricing is fair or not, how much the proportion ofrisk cost is compared to distribution cost, etc, he said, but declining to commenton the details of the regulation or the time-frame of its issuance.

Martin Hintz, head of micro-insurance at Allianz Life Indonesia, which has served570,000 micro-insurance customers nationwide since its inception in 2006, saidthat another issue to be addressed in the planned regulation would be simplifyinglicenses for people who sell the specific insurance products.


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Source: http://www.justmeans.com/Kilimo-Salama-Farmers-in-Kenya-Cash-in-on-a-New-Microinsurance-Program/50354.html

Kilimo Salama: Farmers in Kenya Cash in on a NewMicroinsurance Program

"Insurance...offers significantcapacity and ability to understand, manage, and spread risks associatedwith weather-related events...increasingly so in developing countries andeconomies in transition." -- Evan Mills, Lawrence Berkeley NationalLaboratory[1]

It's not easy being a farmer in Kenya, where less than a fifth of the land issuitable for cultivation. And it's particularly difficult during the Horn of Africa'sworst drought in 60 years. But thanks to a microinsurance program that waslaunched last year, some corn and wheat farmers who lost their crops will beable to afford to farm next season.

A joint-program started by the mobile operator Safaricom, UAP Insurance andSyngenta Foundation, a non-profit organization that supports small farmers indeveloping nations and emerging markets, Kilimo Salama ("safe farming" inSwahili), offers farmers an insurance policy for investments that are lost to thevicissitudes of weather.

The set up is simple yet effective: Farmers who live in any of the five coveredregions across Kenya -- Bungoma-Busia, Oyugis-Homa Bay, Nanyuki-Timau,Embu and Eldoret -- register with one of 30 solar-powered weather stations andpurchase insurance when they buy seed or fertilizer. Drought severity is

calculated by the weather stations and participating farmers receive paymentsthrough their mobile phones.

GROWING TRUST: PAY AS YOU PLANT

"This 'pay as you plant' type of insurance allows farmers to 'try out' insurance, aproduct they have never bought before and which has a negative reputation inKenya," according to Syngenta. "Experience shows that as farmers learn to trust
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insurance, they expand their coverage and are comfortable investing more intheir farm, raising their productivity and increasing their food security."[2]

"Many farmers find this to be an effective way of ensuring that, when adverseeffects of nature set in, they can find an alternative source of funding in order to

cultivate again," said Silas Waweru, an insured farmer who has cashed in on apayout.[3]

GIVE A MAN A FISH...

Some studies show that aid spurs economic growth. Others show the oppositeeffect. Still others show there is no net effect. But what is clear is that in a crisissituation, such as the drought in Africa, aid is necessary when immediate help isrequired, particularly with food, water and medical supplies.

What is also clear is that the availability of aid is variable, uneven and attached to

politics. In a 2009 IMF working paper, Camelia Minoiu from the IMF Institute andSanjay G. Reddy, an economist from Columbia University, note that Americanaid, for example, is (unsurprisingly) influenced by its Middle East policy, whileformer colonial powers like the United Kingdom and France direct most bilateralaid to their former colonies (perhaps driven by a bit of colonial guilt).[4] And whilethey find that developmental aid is "likely to create sizable returns in the longrun," it is just one tool in the poverty alleviation toolkit. Innovative microfinanceconcepts like Kilimo Salama are also powerful tools.

BAADA YA DHIKI FARAJA

With over 13 million people in Somalia, Ethiopia and Kenya who need immediateassistance, the recent announcement that the Bill & Melinda Gates Foundation isgiving USD 4.1 million to support the drought relief efforts of the InternationalMedical Corps and the Mercy Corps is certainly welcome news.[5]

But it is also welcome news that the new Kilimo Salama microinsurance schemehas already had initial success. "We believe Kilimo Salama can revolutionizeinsurance and make it accessible to farmers," said UAP's managing directorJames Wambugu. "By using the weather stations to verify local weatherconditions, we are avoiding claims procedures that have created mistrust and ledpeople to avoid insurance. As such, this strategy has the potential to makeagricultural microinsurance affordable and attractive for smallholder farmers andeconomically viable for insurance companies in developing countries that hadpreviously written off the agricultural sector." The program hopes to ultimatelyreach 50,000 Kenyan farmers.[6]

"Baada ya dhiki faraja" is a Swahili proverb that means, "After hardship, comesrelief." For the some 12,000 Kenyan farmers who are enrolled in Kilimo Salama,this saying has become an economic reality.


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Source: http://www.tempointeractive.com/hg/nasional/2011/10/27/brk,20111027-363676,uk.html

World Bank Starts Campaign on MicroinsuranceThursday, 27 October, 2011 | 23:06 WIB

TEMPO Interactive, Jakarta:The World Bank has started a campaign on theimportance of insurance for the poor. Stefan Koeberle, the World Banks CountryDirector for Indonesia, suggested Indonesia to develop microinsurance.

Indonesias natural landscape, which is prone to disaster, is considered to have amajor impact on marginal household. Should a natural disaster occur, the impactis more severe in these household. So far, there are 77 million out of 238 millionIndonesian citizens living without insurance or savings.

Koeberle believed that microinsurance is also one of the key components ofIndonesias National Financial Inclusion Strategy. Microinsurance providesaffordable insurance products for a wider market segment which has beenunderserved.
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Source: http://www.microfinancefocus.com/reminders-promote-contribution-savings-linked-insurance-products

Reminders promote contribution to savings-

linked insurance products

Microfinance Focus, November 1, 2011: According to an emerging insight fromILOs Microinsurance Innovation Facility, studies show that reminders that createa mental link between contributions and a personal savings goal can promotesavings and that people may prefer products that offer structured savings toproducts with more flexibility.

These lessons can be applied to Max New York Life (MNYL) India which whileimplementing its microinsurance project found that customers save more often

when given reminders.

MNYL has a 10-year life insurance endowment policy, which includes an initialpremium payment of Rs. 1000 and optional top-ups for savings. The policyoffers more flexible to customers than traditional endowment policies becausethey are free to make top-ups as they choose, and savings are not required tokeep the policy in force.

MNYL expected the flexible structure to encourage savings. Only 22% of 90,000policies were ever topped up, however, raising questions of whether the productwas too flexible and whether additional structure, such as requiring quarterly top-

up, would have been more effective in promoting savings.

Although top-ups increased to 51% during a three-month intensive marketingcampaign, the number of top-ups dropped significantly after the campaign,suggesting that customers save more often when given reminders.
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Source:http://www.marketwatch.com/story/opportunity-international-joins-industry-leaders-in-alleviating-global-poverty-2011-11-01

Nov. 1, 2011, 8:02 a.m. EDT

Opportunity International Joins Industry Leaders inAlleviating Global Poverty

SEEP Conference Unites Experts to TransformDevelopment Through Microenterprise

OAK BROOK, IL, Nov 01, 2011 (MARKETWIRE via COMTEX) -- This week,Opportunity International joins USAID, Credit Suisse, IFC World Bank Group,Blue Orchard, Grameen Foundation and other industry leaders in sponsoring the2011 SEEP "Powering Connections" conference. Every year, SEEP bringstogether microfinance practitioners from a variety of disciplines to build capacitythrough the sharing of industry best practices. This conference is one of thecornerstones of development -- for four days thought-leaders will discussinnovative ways to use microfinance and microenterprise solutions to alleviatepoverty in the developing world.

"Microfinance is a powerful tool that is changing the face of internationaldevelopment. We are proud to be part of the SEEP network of organizationsdedicated to empowering individuals and communities through microenterprise,"said Dennis Ripley, Senior Vice President of International Development forOpportunity International. "One of the themes of the this year's SEEPConference is savings, and through our participation we are joining in theconversation with other thought leaders from around the globe to discuss theevolving microfinance landscape, and how the various models and partnershipsthat are being developed by organizations to provide access to savings accountsare giving the world's poorest citizens a safety net for the future."

SEEP "Powering Connections" will offer a number of workshops and plenarysessions on savings. In the plenary session "State of the Sector: Microfinance inan Evolving Landscape," David Simms, Board Chair of OpportunityInternational's Global Microfinance Operations, will join in a discussion about theprogress the microfinance institutions have made over the last 30 years, andwhat the future will hold for the rapidly evolving financial ecosystem. The sessionwill address the ways in which microfinance organizations can remain relevantand responsive to new demands, one area in which Opportunity International has


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excelled through the expansion of its portfolio of financial tools that reach wellbeyond small business loans and extend to access to savings accounts,insurance and training.

During the SEEP Conference, Opportunity International will also sponsor a

workshop, "Unleashing the Power of Small Holder Farmers in Africa." Thesession, led by John Magnay, Opportunity International's Senior AgriculturalAdvisor, and Gilbert Lagaillarde, CEO of Opportunity International DemocraticRepublic of Congo (DRC), will look at how the organization's Agriculture Financemodel provides African rural smallholder farmers with a full range of financialservices that enable them to build a safety net for their families.

Also participating in the SEEP Conference will be Ted Moser, an OpportunityInternational board member, who will present during a plenary session on usingthe latest technology advances to bring access to savings accounts to the world'smost remote regions. Richard Leftley, CEO of MicroEnsure, a subsidiary of

Opportunity International, will participate in a workshop that will analyze thedefining characteristics of microinsurance and look at a variety of microinsurancepartnership models. During the conference, Opportunity will also participate in apanel hosted by Credit Suisse that will explore efforts to improve collaborationand transparency among industry leaders in communicating the social impactand measurement of microfinance programs.

What: Opportunity International is a gold sponsor of the 2011 SEEP "PoweringConnections" conference focused on savings enterprise and marketdevelopment.

When: Monday, Oct. 31 - Thursday, Nov. 3, 2011

Where: Sheraton National Hotel, 900 South Orme Street, Arlington, Virginia

Who: David Simms, Board Chair of Opportunity International's GlobalMicrofinance Operations; Ted Moser, Opportunity International board member;Dennis Ripley, Senior Vice President of International Development forOpportunity International; Gilbert Lagaillarde, CEO, Opportunity DRC; JohnMagnay, senior agricultural advisor for Opportunity International; Richard Leftley,CEO of MicroEnsure, a subsidiary of Opportunity International, and otherOpportunity International staff members will participate in plenary sessions and

workshops during the conference.

About Opportunity International Opportunity International provides access tosavings accounts, small business loans, insurance and training to over 2.5 millionpeople working their way out of poverty in the developing world. Clients in morethan 20 countries use these financial tools to start or expand a business, providefor their families, create jobs for their neighbors and build a safety net for the


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future. For more information, visit www.opportunity.org or join the conversationon Facebook and Twitter.

Source:http://nigerianobservernews.com/29102011/news/news8.html

NAICOM, German Agency Conduct Study OfMicro, Takaful InsurancesLast update 29/10/2011

The National Insurance Commission (NAICOM) says it has entered intoagreement with a German agency, GIZ, to conduct a study of micro and Takaful(Islamic) insurance products in Nigeria.

Mr. Fola Daniel, NAICOM Commissioner for Insurance, disclosed this onThursday at a seminar organised for insurance correspondents in Uyo, AkwaIbom.

According to him, the gesture is part of NAICOMs drive to open up and developinsurance market at the grassroots.

He said that this was also a means to increase the sectors contribution to thenations Gross Domestic Product (GDP).

The Commission recently entered into an agreement with GIZ, a Germanagency for sustainable development, to conduct a diagnostic study of Micro andTakaful insurances in Nigeria.

This is part of the NAICOMs drive to open up and develop the insurance marketat the grassroots and by extension, increase the sectors contribution to thenations GDP, he said.

Daniel said that the development of the micro insurance market was one of theobjectives of the commissions market development and restructuring initiatives.

He said that the development of micro insurance was both a moral and economicimperative for the promotion of inclusive financial system and equitable mitigationof risks.

The commissioner said that the theme of the seminar was selected based on therecent developments in the realm of inclusive insurance and which NAICOM hadtaken interest in supporting and promoting.
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Source:http://www.vanguardngr.com/2011/10/naicom-partners-german-agency-to-develop-micro-insurance/

NAICOM partners German agency to develop

micro insuranceOn October 31, 2011 By ROSEMARY ONUOHA

The National Insurance Commission (NAICOM) has finalised arrangement tocollaborate with a German Agency for the purpose of developing micro insurancein Nigeria.

The Agency, the Commission said will conduct diagnostic research on modalitiesof developing Micro Insurance, Agricultural Insurance and Takaful (Islamic)Insurance products in Nigeria Mr. Fola Daniel, Commissioner for Insurance who

disclosed this last week while flagging off a two-day Seminar for InsuranceCorrespondents in Uyo, the Akwa Ibom State Capital noted that the collaborationwas part of the commissions drive to open up and develop the insurance marketat the grassroots and by extension, increase the sectors contributions to thedomestic product (GDP) of the nation.

Daniel said that the theme of this years seminar Development of MicroInsurance Market in Nigeria was carefully selected based on the recentdevelopments in the realm of inclusive insurance in the country.He added that development of the micro finance insurance market was one ofthe market development and restructuring initiatives (MDRI).

The development of micro insurance is both the moral economic imperative, notonly for promotion inclusive financial systems but also for the equitable mitigationof risks. It is for this reason amongst others, that NAICOM has taken keeninterest in not just supporting but promoting its development in Nigeria , Danielsaid.

He said the Nigerian Oil and Gas Content Development Act 2010 also offer theinsurance industry in the country leverage to further expand its market.The commissions quickly took advantage of this law to and develop a guidelinefor the industry. The guideline gives roadmap on how oil and gas insurancebusiness should be conducted in Nigeria . The oil and gas insurances was rolled

out early this year. While it may be too early to adjudge impact of oil and gasinsurances on the overall performance of the industry, it has become apparentthat we still have yawning capacity gap in that sub-sector, Daniel said.He noted that the realization prompted the inception of an industry committee toexplore the possibilities of an oil and gas pool as a pool, adding that thecommittee is still working and it is hoped that the product of their deliberation willaid the commissions quest for enhanced industry.
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Daniel who said the development of Agricultural insurance was another area ofconcern for the commission noted that although, the Nigerian AgriculturalInsurance Corporation (NAIC) seems to have the exclusive right to insure allsubsidized agricultural risks in the country by virtue of the act that established it,huge opportunities still exist in the areas of commercial unsubsidized agricultural

risks.

Daniel said under the relevant law, the commission was prepared to give thenecessary support to any underwriter who desirers to underwrite theconventional agricultural insurance.He noted that the imprint of the commissions strive towards growth anddevelopment of the industry were now very visible especially in the areas ofmarket development, innovation in product development, war against fakeinsurers and unethical practices, tough stance on non compliance to policyguidelines and drive to ensure consumer protection.He noted that from early November, will roll out its advertisement campaign to

further draw the attention of the public to insurances, warn and educate themabout the benefits and consequences of non-compliance.This is preparatory to actual commencement of compulsory insurance in thecountry, with Ibadan , the Oyo State Capital as the starting point from November15, 2011, he said


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Source: http://jamaica-gleaner.com/gleaner/20111104/business/business91.html

New micro-insurance plan for HaitiPublished: Friday | November 4, 2011

The Barbados-based Caribbean Development Bank (CDB) has signed a grantagreement with the Insurance Catastrophe Risk Organisation SCC (MiCRO) tosupport a micro-insurance programme for Haiti.

MiCRO is a special-purpose company licensed to provide parametric insurancesupport to Haiti initially, but is to be expanded to include the Caribbean region.CDB is administering the multi-donor trust fund that supports the operations ofMiCRO, which is an innovative one-of-a-kind programme that providesparametric insurance to protect microfinance institutions and their microcreditborrowers in Haiti against losses resulting from natural disasters.

The initiative was launched in September, following an initial contribution ofUS$1.5 million by Britain.

CDB president Dr Warren Smith, who witnessed the signing, said that the Bank"is very happy to be associated with this venture, since it represents a very goodexample of innovation in arriving at solutions to the challenges which confrontmicro-business and solutions to risk".

He said that it was particularly significant that the focus of the exercise is Haiti,where there is a proliferation of microenterprises which he regards as "a dynamicforce for the future of the country".

Parametric insurance is a form of insurance which does not indemnify for pureloss, but upfront agrees to make a payment upon the occurrence of a triggeringevent, often a catastrophic event which may ordinarily precipitate a loss or seriesof losses," CDB said in a statement.

It said that a model is used to calculate the losses incurred and payout due of theinsurance policy. This calculation model aims to closely mirror the actual damageon the ground and enables a much more rapid payment as no loss adjusters arerequired after the event to assess the actual damage. These policies make post-disaster claims payments in a manner that is fast and transparent to

policyholders."Parametric insurance has been deemed to be an appropriate mechanism for theHaitian environment, since it is predictable and has predetermined payouts beingmatched to predetermined hazard levels. This makes reinsurance cheaper thantraditional indemnity insurance schemes. The risks that are covered via thisparticular mechanism are earthquakes, hurricanes (wind) and flooding."
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The January 2010 earthquake that killed an estimated 300,000 people anddestroyed several buildings in Haiti has had a devastating effect on micro-entrepreneurs who suffered lost assets, suppliers and markets."The microfinance sector, which provides microloans to stimulate and sustainmany of these businesses, also experienced extensive losses. This resulted in

increased risk in providing microloans to micro-entrepreneurs," the CDB said.It said that MiCRO was designed with the goal to increase access to insurancefor Haiti's micro-entrepreneurs with the aim to help them protect themselves andtheir livelihoods against the economic impact of severe natural catastrophes.MiCRO currently provides coverage for Fonkoze, which is Haiti's largestmicrofinance institution with over 50,000 clients.

Since its inception, Micro has paid out a total of approximately US$1.3 million forthree extreme rainfall events in Haiti. Coverage is expected to grow as moremicrofinanciers join the programme and other insurance products are developed.Apart from CDB and the UK's Department for International Development,

MiCRO's strategic founding partners include the Swiss Agency for Developmentand Cooperation, Mercy Corps, Fonkoze, Caribbean Risk Managers Limited(CaribRM), Reinsurer Swiss Re, and GC Micro Risk Solutions SM.


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Source:http://www.microfinancefocus.com/international-microinsurance-conference-brazil

International Microinsurance Conference in BrazilMicrofinance Focus, November 4, 2011:

Munich Re Foundation in collaboration with the Microinsurance Network will beorganizing its 7th International Microinsurance Conference in Rio de Janeiro,Brazil from November 8 to 10, 2011.

Over 400 experts from more than 50 countries are expected to gather for theevent to discuss challenges and opportunities in microinsurance, while alsofocusing on lessons learnt and emerging issues. The conference will besupported by the Brazilian Confederation of Insurers (CNseg), theSuperintendence of Private Insurance (Susep), GIZ/BMZ and Georgia State

University.

With 22 sessions and over 70 speakers addressing key questions in the field, theconference represents one of the largest gatherings of microinsurance experts inthe world.

The issues to be discussed during the conference include an economic analysisof market opportunities and barriers, national and regional strategies formicroinsurance development in relation to various parts of the globe, andinnovative approaches that improve microinsurance distribution.The conference also marks the occasion when the Brazilian National Congress

will vote on a law that will incorporate specific regulation on microinsuranceactivities to enhance the access to insurance for the low-income population ofBrazil.

A plenary session will focus on the opportunities and challenges within themicroinsurance sector in Brazil, as well as innovative strategies in distribution,the regulatory perspective and lessons learnt. Another session will examine thelessons from a variety of national insurance strategies including cases from thePhilippines, Zambia and Colombia.

There will be four academic track sessions which will include amongst others,

Stefan Dercon, the Development Economist, Professor of DevelopmentEconomics at Oxford University and former leader of the insurance againstpoverty programme at World Institute for Development Economics Research.
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Source:http://www.deccanherald.com/content/202104/ngo-takes-poor-lic-clients.htmlNGO takes poor LIC clients for a rideT R Sathish Kumar, Mandya, Nov 2, DHNS:

Throws out whistleblower who had been in service for 14 yrs without salaryfor months

A Bangalore-based non-governmentalorganisation, also a corporate agent for theLife Insurance Corporation (LIC) of India for

micro insurance policies, has allegedlymisused funds collected from policy-holders, causing a lapse of policies andthus denying claims for the kin of thedeceased.

Susheela, a whistleblower and a former employee of the organisation Vikasa,said even though she was removed from service in July without payment ofsalary from March, she had deposited the money collected from the policy-holders to the designated accounts of Vikasa in a nationalised bank till August23, and sent the details of payments. But the organisation has not paid the

premium amount to the LIC since 2010, she said.

Removed

She said she had been with the organisation for over 14 years, but was ill-treatedsince March even though she worked for four projects NABARD, Santhwanaand micro insurance. She said she wrote a letter expressing her displeasure,which the directors considered as resignation and removed her.

Susheela has lodged a complaint with the Malavalli town police against directorN Prasanna, project director Y S Mahabalesh, and manager Vijendra.

The police have submitted a first information report with the JMFC court onOctober 28.

Jeevan Madhura 182 is a micro insurance policy of the LIC launched for thebenefit of rural and economically backward people.Those aged between 18 and60 years are eligible for it. Policy-holders can opt for weekly or monthly payment,which the corporate agent should collect through sub-agents by paying a share in
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the commission.

The premium amount could be between Rs 100 and Rs 500 a month. Mostpeople prefer a five-year term, while others opt for 10 years. Vikasa hasreportedly enrolled nearly 3,200 policy-holders - in Maddur, Channapatna, Ilkal

(Bagalkot district), Turuvekere, Banasandra (both in Tumkur district) and Anekal(Bangalore) - including 850 people in Malavalli taluk.

Gowramma, another employee, said she did not know about the commission tillan accomplice, an employee of another NGO, told her about it just a few daysago. I worked for a meagre salary all these years for not less than fourprojects at a time without any knowledge of my rights, she added.

M V Shylashri, nominee for the late Venkategowda of Malavalli town and aresident of Dasanadoddi, said her father died in February and he had paid thepremium till December 2010. But she did not get any claim.

I do not know what to do... I know Gowramma and she has collected thepremium from my father. I depend on her for a solution, she added.

Rachaiah, nominee and husband of P Sarojamma of Pandithalli who died onlylast month, said he had two sons to look after and that he had incurred someexpenses on his wifes treatment before her death. I have borrowed somemoney... if I get the claim, it would help me to a great extent, he said.

Technical problem

N Prasanna, Director of Vikasa, admitted that the amount collected could not bedeposited with the LIC due to some technical problem with the software of theinsurance firm for some time. But he alleged it was the handiwork of his formeremployees in Malavalli.

He said his squad had reported that the coordinators were extracting additionalfees from policy-holders and subscribers to micro finance.

So I expelled them. Now, they are doing this to defame our organisation,Prasanna said.

Y S Mahabalesh, project director, said: Out of the five claims in question atMalavalli, almost four can be settled.

The rest can also be claimed if the former employees co-operate. However,Basavaraju of Gajanur has given an oral statement to the Malavalli town policeabout the former employees demanding money for settlement of a claim he gotrecently.But he admitted that there was no registered complaint in this regard.


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A senior officer of the LIC said that if the policy had lapsed due to non-paymentof premium, claims have to be settled differently.

Approach LIC

The nominees have to approach the LIC and find out whether they are eligible fora claim, he said. He also said Vikasa had paid some money in two instalments tothe LIC, but the particulars of the policy-holders were yet to be furnished.

He said Vikasas claim that the premiums could not be paid owing to a softwareproblem was false.


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Source:http://business.myjoyonline.com/pages/news/201111/75881.phpBoG to help develop insurance scheme for 'susu'collectorsFrom: Ghana | Daily Graphic Last Updated: November 3, 2011, 10:24 am

The Bank of Ghana (BoG) is in talks with members of the Ghana Co-operativeSusu Collectors Association (GCSCA), the umbrella body of 'susu' collectors, todevelop an insurance scheme for clients of susu businesses throughout thecountry.

The move, according to the Central Bank, forms part of regulatory mechanismsbeing devised for the group and the countrys micro-finance sector in general.

The Head of Banking Supervision Department (BSD) at the Central Bank, MrFranklin Bengle, who made this known to the Daily Graphic, explained that the

mechanism was to help insulate clients of the 'susu' service against risks oflosing their money to unscrupulous collectors.

We are in talks with the GCSCA to set up an insurance fund for their membersso that if people lose their money through this business (the 'susu' collection),then the victims can easily be catered for by funds from the insurance fund, MrBengle added.

The said insurance scheme would thus provide claims for 'susu' contributors whofell victim to fraudulent collectors. The successful implementation of the fundcould possibly endear the 'susu' business to many individuals and business

institutions in the country by helping to erase the present fear among manypeople that a collector may run away with their collections.

Mr Bengle, however, noted that the Central Bank was not comfortable withallowing the collectors to give out loans to interested clients because they do nothave liquidity ratios.

Liquidity ration is the amount of money held by a financial institution, in mostcases a bank, as a proportion to its deposits and is normally measured by theextent to which the said institution or another entity can quickly liquidate assets tocover short-term liabilities.

You know these collectors don't have a liquidity ratio that they can easily fall onto defray their debts, the head of BSD at the central bank said, adding that thebank was thinking of allowing them to do concessionary lending by using theGCSCA as an institution to secure funds from other bigger financial serviceproviders.

And when that happens, GCSCA will guarantee for those funds and then
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monitor the disbursements, usage and retrieval of those funds, he noted.

On regulations for the micro finance sector so far, Mr Bengle said the bank hadstarted receiving some applications from some of the institutions that were giventhe six-month period to re-register or cease operations.

He said BoG was trying to encourage self regulation of these institutions,explaining that although the bank would at the end act as the overseeing body ofthese institutions, the BoG was trying to get the umbrella bodies to enforcethese regulations among their respective members.

We want to get the umbrella bodies of these microfinance institutions to selfregulate themselves. We want to put some peer pressure on them to make surethat their members do not go contrary to the guidelines of the bank.

With this, the BoG can now also extend its influence as the overall regulator of

the entire process, Mr Bengle added.


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Source:http://www.caribbeanpressreleases.com/articles/8832/1/CDB-amp-MiCRO-Sign-Agreement-to-Establish-Micro-Insurance-Facility-for-Haiti/Page1.html

CDB & MiCRO Sign Agreement to Establish Micro-Insurance Facility for HaitiBy S CowardPublished 01-Nov-11

Bridgetown - Noc. 1, 2011 - The Caribbean Development Bank (CDB) and MicroInsurance Catastrophe Risk Organisation SCC (MiCRO) have signed a grantagreement supporting a catastrophe micro-insurance programme for Haiti.CDB is administering the multi-donor trust fund that supports the operations of

MiCRO, which is an innovative one-of-a-kind programme that providesparametric insurance to protect microfinance institutions and their micro-creditborrowers in Haiti against losses resulting from natural disasters. This initiativewas launched on September 28, 2011, following an initial contribution of US$1.5million by the UK Governments Department for International Development(DFID).Parametric insurance is a form of insurance which does not indemnify for pureloss, but upfront agrees to make a payment upon the occurrence of a triggeringevent, often a catastrophic event which may ordinarily precipitate a loss or seriesof losses. A model is used to calculate the losses incurred and payout due of theinsurance policy. This calculation model aims to closely mirror the actual damage

on the ground and enables a much more rapid payment as no loss adjusters arerequired after the event to assess the actual damage. These policies make post-disaster claims payments in a manner that is fast and transparent to policyholders.Parametric insurance has been deemed to be an appropriate mechanism for theHaitian environment, since it is predictable and has pre-determined payoutsbeing matched to pre-determined hazard levels. This makes reinsurancecheaper than traditional indemnity insurance schemes. The risks that arecovered via this particular mechanism are earthquakes, hurricanes (wind) andflooding.The 2010 earthquake in Haiti had a devastating effect on micro-entrepreneurs

who suffered lost assets, suppliers and markets. The microfinance sector, whichprovides micro-loans to stimulate and sustain many of these businesses, alsoexperienced extensive losses. This resulted in increased risk in providing micro-loans to micro-entrepreneurs.MiCRO was designed with the goal to increase access to insurance for Haiti'smicro-entrepreneurs with the aim to help them protect themselves and theirlivelihoods against the economic impact of severe natural catastrophes. MiCROis a special purpose Barbados segregated cell company licensed to carry on
http://www.caribbeanpressreleases.com/articles/8832/1/CDB-amp-MiCRO-Sign-Agreement-to-Establish-Micro-Insurance-Facility-for-Haiti/Page1.htmlhttp://www.caribbeanpressreleases.com/articles/8832/1/CDB-amp-MiCRO-Sign-Agreement-to-Establish-Micro-Insurance-Facility-for-Haiti/Page1.htmlhttp://www.caribbeanpressreleases.com/authors/1/S-Cowardhttp://www.caribbeanpressreleases.com/articles/8832/1/CDB-amp-MiCRO-Sign-Agreement-to-Establish-Micro-Insurance-Facility-for-Haiti/Page1.htmlhttp://www.caribbeanpressreleases.com/articles/8832/1/CDB-amp-MiCRO-Sign-Agreement-to-Establish-Micro-Insurance-Facility-for-Haiti/Page1.htmlhttp://www.caribbeanpressreleases.com/authors/1/S-Coward


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exempt insurance business. It will provide parametric insurance support to Haitiinitially, but is to be expanded to include the Caribbean region.MiCRO currently provides coverage for Fonkoze, which is Haitis largestmicrofinance institution (MFI) with over 50,000 clients. Since its inception, Microhas paid out a total of approximately US$1.3million for three extreme rainfall

events in Haiti. Coverage is expected to grow as more MFIs join the programmeand other insurance products are developed.Apart from CDB and the UK Governments Department for InternationalDevelopment (DFID), MiCROs strategic founding partners include the SwissAgency for Development and Cooperation, Mercy Corps, Fonkoze, CaribbeanRisk Managers Limited (CaribRM), Reinsurer Swiss Re, and GC Micro RiskSolutions SM.CDBs acting Vice-President (Operations), Mrs. Tessa Williams-Robertson,signed the grant agreement on behalf of the Bank, while Mr. Nicholas Crichlow,signed on behalf of the Secretary of MiCRO.CDB President, Dr. Warren Smith, who witnessed the signing, said that the Bank

is very happy to be associated with this venture, since it represents a very goodexample of innovation in arriving at solutions to the challenges which confrontmicro-business and solutions to risk. Dr. Smith added that it was particularlysignificant that the focus of the exercise is Haiti where there is a proliferation ofmicro-enterprises which he regards as a dynamic force for the future of thecountry.


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Source:http://www.microcapital.org/microcapital-brief-microfinance-bank-compartamos-of-mexico-seeking-acquisitions-in-microinsurance-mobile-banking-arenas/

Friday, November 4, 2011

MICROCAPITAL BRIEF: Microfinance BankCompartamos of Mexico Seeking Acquisitions inMicroinsurance, Mobile Banking Arenas

Mr Fernando Alvarez Toca, chief executive officer of the Mexican microfinancebank Compartamos Banco, reportedly has said that the bank is seeking toventure into alternative products such as microinsurance and mobile bankingduring 2012 either through acquisitions in different countries or through organicgrowth [1]. As reported by MicroCapital in a story dated July 25, Compartamosacquired Peruvian microfinance institution Financiera Crditos Arequipa SA(Financiera Crear) and is also looking to expand in Latin American countriessuch as Columbia and Brazil through additional acquisitions. Mr Toca declined toname potential acquisition targets.

As of March 31, 2011, Compartamos reported total assets of MXN 12 billion(USD 1 billion), a total loan portfolio of MXN 10.7 billion (USD 920 million), returnon assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent andapproximately 2 million borrowers.

By Nisha Koul, Research Associate

About Compartamos Banco: Compartamos Banco is a microfinance bank basedin Mexico that was founded in 1990. It offers group and individual loans in ruraland urban areas. Compartamos Banco provides loans to low-income people forbusiness and home improvement purposes. It also offers voluntary savings andinsurance products. The company made its initial public offering (IPO) in 2007 onthe New York and Mexican stock exchanges in a transaction worth USD 467million and, as of March 31, 2011, reported total assets of MXN 12 billion (USD 1billion), a total loan portfolio of MXN 10.7 billion (USD 920 million), return onassets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent andapproximately 2 million borrowers.
http://www.microcapital.org/microcapital-brief-microfinance-bank-compartamos-of-mexico-seeking-acquisitions-in-microinsurance-mobile-banking-arenas/http://www.microcapital.org/microcapital-brief-microfinance-bank-compartamos-of-mexico-seeking-acquisitions-in-microinsurance-mobile-banking-arenas/http://www.microcapital.org/microcapital-brief-microfinance-bank-compartamos-of-mexico-seeking-acquisitions-in-microinsurance-mobile-banking-arenas/http://www.microcapital.org/microcapital-brief-microfinance-bank-compartamos-of-mexico-seeking-acquisitions-in-microinsurance-mobile-banking-arenas/


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Source:http://www.microcapital.org/microfinance-event-papers-panel-proposals-solicited-for-2012-research-conference-on-microinsurance-enschede-the-netherlands-april-11-%E2%80%93-13-2012/

Friday, November 4, 2011

MICROFINANCE EVENT: Papers, Panel ProposalsSolicited for 2012 Research Conference onMicroinsurance, Enschede, the Netherlands, April11 13, 2012

Event Name: 2012 Research Conference on MicroinsuranceEvent Date: April 11 April 13, 2012Event Location: Enschede, the NetherlandsSee Our Comprehensive Event Calendar at:http://microfinanceassociation.ning.com/events

Cost:Early registration, through December 20, 2011: EUR 155 (USD 212)Regular registration, December 21, 2011 January 30, 2012: EUR 180 (USD247)Late registration, January 31, 2012 March 18, 2012: EUR 230 (USD 315)Undergraduate Students: EUR 50 (USD 69)

Summary of Event:The objective of this conference is to assess the state of microinsuranceresearch and provide a platform for creating a dialogue between researchers

from different geographical regions and disciplines.Organizers of this event are inviting papers and panel proposals for theconference. Papers may have a theoretical or empirical focus and may covertopics such as impact, demand, product design, business process andinstitutional aspects. Panel proposals are to be submitted by December 5, 2011.Applications for scholarships and paper abstracts are to be submitted byDecember 20, 2011. Acceptance notification will be given by January 22, 2012.The deadline for full paper submission is March 18, 2012.

Event Website: http://www.utwente.nl/igs/2012%20Research%20Conference%20on%20Microinsurance/

For additional information, you may contact Marcia Clifford via e-mail [email protected] or telephone at +31 53 48 93 423.

Submit Your Event: http://microfinanceassociation.ning.com/events

By Ashim Kar, Research AssociateSources and Additional Resources:
http://microfinanceassociation.ning.com/eventshttp://www.utwente.nl/igs/2012%20Research%20Conference%20on%20Microinsurance/http://www.utwente.nl/igs/2012%20Research%20Conference%20on%20Microinsurance/mailto:[email protected]://microfinanceassociation.ning.com/eventshttp://microfinanceassociation.ning.com/eventshttp://www.utwente.nl/igs/2012%20Research%20Conference%20on%20Microinsurance/http://www.utwente.nl/igs/2012%20Research%20Conference%20on%20Microinsurance/mailto:[email protected]://microfinanceassociation.ning.com/events


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Call for papers and panels: 2012 Research Conference on Microinsurance,http://www.microinsurancenetwork.org/networknew-718.php#commentaireMicroCapital.org story, November 1, 2011, MICROFINANCE EVENT: SecondAnnual Microinsurance Conference from the Institute for International Research(IIR), Johannesburg, South Africa, February 20 22, 2012,

http://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/

MicroCapital.org story, January 19, 2010, MICROCAPITAL EVENT: SixthAnnual Microinsurance Conference, Manila, Philippines, November 9-11, 2010,http://www.microcapital.org/microcapital-event-sixth-annual-microinsurance-conference-manila-phillippines-november-9-11-2010/

Browse the MicroCapital Universe and add your entry to the wiki athttp://www.microcapital.org/microfinanceuniverse/
http://www.microcapital.org/microfinance-event-papers-panel-proposals-solicited-for-2012-research-conference-on-microinsurance-enschede-the-netherlands-april-11-%E2%80%93-13-2012/blankhttp://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/http://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/http://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/http://www.microcapital.org/microcapital-event-sixth-annual-microinsurance-conference-manila-phillippines-november-9-11-2010/http://www.microcapital.org/microcapital-event-sixth-annual-microinsurance-conference-manila-phillippines-november-9-11-2010/http://www.microcapital.org/microfinanceuniverse/http://www.microcapital.org/microfinance-event-papers-panel-proposals-solicited-for-2012-research-conference-on-microinsurance-enschede-the-netherlands-april-11-%E2%80%93-13-2012/blankhttp://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/http://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/http://www.microcapital.org/microfinance-event-second-annual-microinsurance-conference-from-the-institute-for-international-research-iir-johannesburg-south-africa-february-20-%E2%80%93-22-2012-3/http://www.microcapital.org/microcapital-event-sixth-annual-microinsurance-conference-manila-phillippines-november-9-11-2010/http://www.microcapital.org/microcapital-event-sixth-annual-microinsurance-conference-manila-phillippines-november-9-11-2010/http://www.microcapital.org/microfinanceuniverse/


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Source: http://www.microfinancefocus.com/microfinance-meets-micro-healthcare

Microfinance meets Micro Healthcare

Microfinance Focus, August 24, 2011: In an attempt to provide affordable microhealth program to the underserved sections of the society, Mysore (Karnataka,India) based healthcare consultancy and service provider Suddanand Healthcarehas developed a symbiotic relationship with microfinance institutions inKarnataka.

Utilizing the existing customer base infrastructure of MFIs in the state,Suddanand Healthcare program is ensuring higher efficiency, standardization ofcharges, greater awareness and penetration of health care to a larger section ofpeople.

Suddanand is a non-governmental organization (NGO) and offers a non-commercial micro health program. An individual has to pay Rs. 160 to become amember. With this membership, he/she can claim up to Rs. 5000. Themembership card can be used at certain hospitals to receive outpatient servicesat Rs. 10 and inpatient treatment at fixed costs arranged by SuddanandHealthcare with the hospitals.

Suddanand Healthcare coordinates between MFIs and network hospitals forfixing standard rates for medical expenses. It also appoints and provides claimforms to network hospitals near the villages. Further, it provides license to treatpatients under cashless scheme to the hospitals.

There are other value-added services such as arranging ambulance services,guiding members for special consultation, providing information about 24-hourhelp lines, health facilities, bed availabilities, organization of lifestyle and otherwell-being programs. Through these comprehensive services, SuddanandHealthcare is able to provide affordable health care to the poor.

Suddanand Healthcare has an affordable outpatient cost of just Rs. 10. It has thelicense to get patients treated under cashless scheme in the concerned
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hospitals. There is a hand held system in place and when the patient goes to thehospital, there will be a Suddanand helper at the hospital to help the patient.Suddanand uses web-based software to maintain claim settlements. Lastly,Suddanand micro health care program ties up with MFIs, to use their customerdatabase to educate and reach out to the poor.

The Healthcares model is a self-sustaining in the sense that it does not needexternal funding. Its members contributions are able to sustain the program.In an interview with Microfinance Focus, Dr. Arjun Sachidanand, ManagingDirector of Suddanand Healthcare, felt that there was a grave need for ahealthcare program in India for its large number of the poor. He realized that 70%of emergency loans of MFIs taken by the poor were for health purposes.Considering the nature of health emergencies and the urgency of the situations,the poor are vulnerable to exploitation by moneylenders. He also realized thatinsurance companies did not want to cover the rural poor. The vast majority ofthe country suffers from a poor standard of healthcare infrastructure that has not

kept up with the growing economy.

The incident that inspired Dr. Sachidanand to start up a micro health programwas the case of a 6 year old girl who had come into the hospital and 6 monthsago she died. She had fever and was given consultation as well as a prescriptionfor medication. However, she had not purchased the medicines due to financialconstraints. So, her family decided to take her to a quack, which would becheaper. The quack had given her steroids that caused her illness to spiral intoMeningitis. Unfortunately, the girl passed away 6 months later. Being a witness tothis incident, Dr. Sachidanand decided that such a scenario should not repeatany more. He thus decided to start a micro health program that made affordablehealthcare services available to the poor. With his micro health program, hismain goal is that nobody will be denied treatment for lack of money.Dr. Sachidanand shares some of the challenges that he faced in implementingthe program. One of them was about ensuring cooperation of the doctors in thehospitals with the program and providing the right and necessary treatment at theappropriate cost. In order to stem out fraud, Suddanand has its own medicalpersonnel to verify the authenticity of the claims. Another challenge Dr.Sachidanand discussed was geography. Many villages are located far away fromthe hospitals. However, Dr. Sachidanand has ensured that the network hospitalsare no farther than 20km from the villages.

Looking optimistically towards the future, Suddanand is launching its third phaseof registration and is hoping to reach out to 100 thousand poor. So also,Suddanand is hoping to scale up its scope aiming to operate in more districts inthe state as well as to venture into other Indian states such as Maharashtra andTamil Nadu.


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Source: http://rapidnewsnetwork.com/insurance-multi-line-updates-unam-ffg-eihi/5614/

Insurance Multi Line Updates: UNAM, FFG, EIHIContributed byadmin on Nov. 7 at 12:01 p.m.

Insurance Multi Line Updates: UNAM, FFG, EIHIUnico American Corporation (Public, NASDAQ:UNAM). Last Market Price:$11.29, Change , % Change . Shares trade in the range of $- $ dollars. It has amarket capitalization of 60.23M dollars,making it a Micro Cap Stock and has5.34M outstanding shares. The company has a beta of 0.49, indicating, the stockto be less volatile than the market. As per the most recent quarterly report, thecurrent earnings per share (EPS) is 0.60. It operates in the Financial sector andbelongs to the Insurance (Prop. and Casualty) industry. The company has a 52week high of $12.10 and a 52 week low of $8.57. The average shares tradedover the past 30 days is 3,202.00, while the volume from the current tradingsession was at 0.00.

FBL Financial Group (Public, NYSE:FFG). Last Market Price: $32.29, Change ,% Change . Shares trade in the range of $31.30 $32.48 dollars. It has a marketcapitalization of 1.01B dollars,making it a Mid Cap Stock and has 31.22Moutstanding shares. The company has a beta of 2.43, indicating, the stock to bemore volatile than the market. As per the most recent quarterly report, the currentearnings per share (EPS) is 4.65. It operates in the Financial sector and belongsto the Insurance (Life) industry. The company has a 52 week high of $35.00 anda 52 week low of $24.50. The average shares traded over the past 30 days is67,172.00, while the volume from the current trading session was at 63,584.00which is 0.95 times the average volume.

Eastern Insurance Holdings Inc (Public, NASDAQ:EIHI). Last Market Price:$13.18, Change -0.17, % Change (-1.27%). Shares trade in the range of $13.17

$13.25 dollars. It has a market capitalization of 107.15M dollars,making it aMicro Cap Stock and has 8.13M outstanding shares. The company has a beta of0.90, indicating, the stock to be less volatile than the market. As per the mostrecent quarterly report, the current earnings per share (EPS) is 0.63. It operatesin the Financial sector and belongs to the Insurance (Life) industry. The companyhas a 52 week high of $14.15 and a 52 week low of $10.95. The average sharestraded over the past 30 days is 4,244.00, while the volume from the currenttrading session was at 3,588.00 which is 0.85 times the average volume.
http://rapidnewsnetwork.com/insurance-multi-line-updates-unam-ffg-eihi/5614/http://rapidnewsnetwork.com/author/admin/http://rapidnewsnetwork.com/author/admin/http://rapidnewsnetwork.com/insurance-multi-line-updates-unam-ffg-eihi/5614/http://rapidnewsnetwork.com/author/admin/


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Source: http://www.bnamericas.com/news/insurance/microinsurance-clients-to-reach-almost-100mn-in-20-years-study

Microinsurance clients to reach almost 100mn in20 years - study - Brazil

Published: Wednesday, November 9, 2011 17:49 (GMT -0400)

Microinsurance customers in Brazil will touch close to 100mn over the next 20years, from the current 23mn-33mn estimate, according to a study published bythe nonprofit think tank Centre for Financial Regulation and Inclusion (Cenfri).Cenfri published the report during the seventh International MicroinsuranceConference, taking place in Rio de Janeiro from November 8-10.

The conference also marks the occasion when Brazil's congress will vote on alaw that will incorporate specific regulation on microinsurance activities toenhance access to insurance for the country's low-income population.Local insurance confederation CNSegis projecting that the current premiumpercentage of GDP will increase to 7.5% in 2017 from 3.5% currently, with theimplementation of this new regulation.
http://www.bnamericas.com/news/insurance/microinsurance-clients-to-reach-almost-100mn-in-20-years-studyhttp://www.bnamericas.com/news/insurance/microinsurance-clients-to-reach-almost-100mn-in-20-years-studyhttp://www.bnamericas.com/company-profile/en/Confederacao_Nacional_das_Empresas_de_Seguros_Gerais,_Previdencia_Privada_e_Vida,_Saude_Suplementar-CNSeghttp://www.bnamericas.com/company-profile/en/Confederacao_Nacional_das_Empresas_de_Seguros_Gerais,_Previdencia_Privada_e_Vida,_Saude_Suplementar-CNSeghttp://www.bnamericas.com/news/insurance/microinsurance-clients-to-reach-almost-100mn-in-20-years-studyhttp://www.bnamericas.com/news/insurance/microinsurance-clients-to-reach-almost-100mn-in-20-years-studyhttp://www.bnamericas.com/company-profile/en/Confederacao_Nacional_das_Empresas_de_Seguros_Gerais,_Previdencia_Privada_e_Vida,_Saude_Suplementar-CNSeg


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Source:http://www.malaya.com.ph/nov10/busi3.htmlManulife eyes micro insuranceBY Angela Lorraine Celis

AFTER the Insurance Commission approves its proposal, Manulife Philippines,an American firm, will start selling what it calls micro insurance specifically for thelow income group.The proposed product will have life cover value ranging from P10,000 toP20,000, according to Indren Naidoo, president and chief executive of Manulife.He declined to specify the premium rate but declared that the cover is valid for asshort as a month to three months.As is the practice, the insured is paid double the value of the cover if he dies inan accident.

"Were hoping to get approval from the regulator this month," Indren Naidoo said.

"After we get the approval, we will sign up our first contract in Davao. We want tokeep our promise that we will sign up our first client before the year is out,"Naidoo said.

Naidoo added Manulife expects to penetrate the market that rarely has access toinsurance products.Based on government data, the penetration rate for life insurance in thePhilippines was only 13 percent as of 2010."Part of our overall obligation is to expand life insurance for the less fortunate,"Naidoo said.

The initial targets of the companys micro insurance product are Cebu andDavao. Eventually, Manulife will move to other areas.Naidoo also announced yesterday that as of end-September, ManulifePhilippines total premiums had grown around 20 percent."The reason for our success is really the expansion of our agency network,particularly in Davao, Cebu, Baguio, and more recently in Iligan and inQuezon City," Naidoo said.

"Were really happy that were a large sales force of 3,000 agents, growingaround 31 percent over the same period last year. That shows that ourexpansion strategy is working," he explained.

Manulife Philippines total new business for the first nine months of 2011 was 54percent higher than for the same period last year."Were very happy with that, particularly when you look at the half year, when themarket was growing only 29 percent. So were extremely happy with the waywere growing," Naidoo said.
http://www.malaya.com.ph/nov10/busi3.htmlhttp://www.malaya.com.ph/nov10/busi3.html


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Source:http://www.reuters.com/article/2011/11/10/leapfrog-indonesia-insurance-idUSL4E7M91NH20111110

US fund LeapFrog eyes Indonesia, Philippineinsurance firmsBy Andjarsari Paramaditha

JAKARTA | Thu Nov 10, 2011 6:43am EST

Nov 10 (Reuters) - LeapFrog Investments, a U.S. fund focused on insurance-related firms, is looking to buy minority stakes in companies in Indonesia and thePhilippines next year to tap markets it sees as under-penetrated, its founder toldReuters on Thursday.

The U.S. fund, founded in 2008 with $135 million of capital, was launched to lookfor ways to capitalise on the micro-insurance sector in Asia and Africa where avast low to middle income population still lives without any insurance.

"Both region's economies are rising, and valuations are still relativelyreasonable," said Andrew Kuper, LeapFrog's founder and president, in atelephone interview from Sydney.

He said the fund was looking into the historical performance of the micro creditindustry, and both the Philipines and Indonesia scored well.

Kuper, a South African, said that he expected the fund will close a deal to buy aPhilippine insurance-related firm early next year, while it has up to $20 million fora potential deal in Indonesia in 2012 as well.

LeapFrog has also discussed with local investors the possibility of a joint bid tobuy an Indonesian target to enter Southeast Asia's biggest economy, he said.BNI Life, a life insurance unit of Bank Negara Indonesia , is looking for strategicpartners, while bankers say Panin Life, a unit of Panin Insurance, is also lookingto sell a significant minority stake to a potential partner.

In April, Japan's largest property and casualty insurer MS&AD paid over $800million to acquire a 50 percent stake in the life insurance unit of Indonesianconglomerate Sinar Mas, one of an increasing number of acquisition deals byforeign players in the Indonesian financial industry this year.

However, Kuper pointed out that language barriers, regulations and incentives forinternational investors, and the challenge of dealing with corruption, were keychallenges to invest in the region.
http://www.reuters.com/article/2011/11/10/leapfrog-indonesia-insurance-idUSL4E7M91NH20111110http://www.reuters.com/article/2011/11/10/leapfrog-indonesia-insurance-idUSL4E7M91NH20111110http://www.reuters.com/places/indonesiahttp://www.reuters.com/article/2011/11/10/leapfrog-indonesia-insurance-idUSL4E7M91NH20111110http://www.reuters.com/article/2011/11/10/leapfrog-indonesia-insurance-idUSL4E7M91NH20111110http://www.reuters.com/places/indonesia


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"It needs a sustained effort going forward," he said.The fund, with offices from Sydney to Edinburgh, is backed by billionaire GeorgeSoros and e-bay founder Pierre Omidyar, as well as a consortium of commercialand development banks, pension funds and reinsurers -- including JP Morgan,Scor and Flagstone Re.

LeapFrog has made three investments so far, including $7 million in SouthAfrica's AllLife in 2009, $14 million in micro insurer Apollo Investment in Kenyathis year and $15 million in India's Shriram Group financial services business inSeptember 2011. (Writing by Janeman Latul; Editing by Neil Chatterjee)


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micro insurance article

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