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Developing Countries: Micro-level Insurance Services

Answer

The Department for International Development (DFID) supports the FinMark Trust for Southern Africa, which has developed a far reaching programme on micro-insurance. Further to its research on the opportunities and constraints for delivering insurance to low-income households in South Africa, the trust has supported diagnostic studies, regulatory reforms and business innovations in several countries, including Ethiopia and Zambia. This is partly through sponsorship of the global Access to Insurance Initiative. In Kenya, the DFID supported Financial Sector Deepening Trust (FSDT) has supported micro-insurance in two ways: by advising on the design of Safaricom and Equity Bank's M-Kesho product; and to develop and demonstrate the market viability of index-based insurance products to reduce the impact of weather risk on smallholder farmers and pastrolists.In India, DFID's Poorest States Inclusive Growth Programme (currently under design) is expected to facilitate the development of a range of affordable financial products, including insurance. By the end of 2015, our aim is for an additional 3 million women in the four poorest states to have access to insurance services. We are also supporting the institutional strengthening of the microfinance sector in countries such as Pakistan and Bangladesh, thereby indirectly assisting the development of a range of financial products including micro-insurance. Going forward, DFID is considering how to further enhance the provision of affordable micro-insurance in a range of countries, in line with its 2011-15 business plan commitment. Further details will be released in due course.

Secondary information

Type

Written question

Reference

30208; 520 c657W

Session

2010-12

Subjects

Developing countries Insurance

Link

View this Written question on www.publications.parliament.uk