A recent study being released this week by Making Finance Work For Africa (MFW4A), an initiative that aims to coordinate financial sector development among African governments, and Munich Re Foundation, the charitable arm of the German reinsurance company, indicates the microinsurance market in Africa has grown by 200 percent in the past 3 years.Approximately 44 million low-income people now benefit from microinsurance products. The results of the survey will be showcased at the 8th International Microinsurance Conference in Tanzania, which is organized by the Munich Re Foundation alongside the Microinsurance Network, a nonprofit organization based in Luxembourg that promotes the development of insurance products for low-income populations [2]. According to MFW4A Partnership Coordinator, Stefan Nalletamby, the study showed that the majority of Africans with insurance are covered by life insurance while other insurance products like health, agriculture, accident and property are not as developed on the continent. The research additionally suggests that 38 million of the insured are concentrated in southern and eastern Africa, of which 27 million are in South Africa alone.
Established in 1880, Munich Re of Germany provides advisory services, reinsurance, primary insurance and health insurance. It established the Munich Re Foundation in 2005 with the mission of reducing risks associated with global population growth and globalization. As of 2011, Munich Re reported EUR 247.6 billion (USD 318 billion) in total assets.
By Sarah Benali, Research Associate
About Making Finance Work For Africa (MFW4A)
The Partnership for Making Finance Work for Africa (MFW4A) was established in October 2007 as part of the annual meetings of the World Bank and International Monetary Fund (IMF). MFW4A aims to facilitate and coordinate financial sector development among African governments, the private sector and development organizations by improving access to information, promoting financial sector development projects and raising awareness. No information has been disclosed about the organization’s budget.
About Munich Re Foundation
Munich Re is a reinsurance company established in 1880 in Munich, Germany. It provides insurance advisory services, reinsurance, primary insurance and health insurance. Munich Ergo Asset Management (MEAG) manages its assets. In April 2005, Munich Re also established the Munich Re Foundation, which works to reduce risks associated with global population growth and globalization. As of 2011, Munich Re had EUR 247.6 billion (USD 318 billion) in total assets.
About The Microinsurance Network
Originally established in 2002 as the CGAP (Consultative Group to Assist the Poor) Working Group on Microinsurance, the Microinsurance Network was spun off as an independent organization in 2009. Based in Luxembourg, the membership organization aims to promote the development of insurance products for low-income populations by providing a platform for information sharing and stakeholder coordination. As of 2011, it reports 52 member organizations.
Sources and Additional Resources
[1] “The Landscape of Microinsurance in Africa 2012;” published by Making Finance Work for Africa, Munich Re Foundation; October 2012, http://www.mfw4a.org/documents-details/briefing-note-african-microinsurance-landscape-2012.html?L=&dl=1
[2] MicroCapital.org story: “MICROCAPITAL EVENT: Munich Re Foundation, Microinsurance Network Present ‘8th International Microinsurance Conference’, Dar es Salaam, Tanzania, November 6-8, 2012,” August 2, 2012, https://www.microcapital.org/microcapital-event-munich-re-foundation-microinsurance-network-present-8th-international-microinsurance-conference-dar-es-salaam-tanzania-november-6-8-2012/
[3] MicroCapital.org story: “MICROCAPITAL BRIEF: Call for Proposals for 8th International Microinsurance Conference, Hosted by Munich Re Foundation, Microinsurance Network, Dar es Salaam, Tanzania, November 6 to 8, 2012,” March 12, 2012,https://www.microcapital.org/microcapital-brief-call-for-proposals-for-8th-international-microinsurance-conference-hosted-by-munich-re-foundation-microinsurance-network-dar-es-salaam-tanzania-november-6-to-8-2012/
[4] MicroCapital.org story: “MICROCAPITAL BRIEF: Making Finance Work for Africa (MFW4A) Launches Website Addressing Access to Finance, Regional Financial Intergration and Remittances,” April 27, 2010, https://www.microcapital.org/microcapital-brief-making-finance-work-for-africa-mfw4a-launches-website-addressing-access-to-finance-regional-financial-integration-and-remittances/
MicroCapital Universe Profile: Making Finance Work For Africa (MFW4A)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Making+Finance+Work+for+Africa+%28MFW4A%29
MicroCapital Universe Profile: Munich Re Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Munich+Re
MicroCapital Universe Profile: The Microinsurance Network
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Microinsurance+Network
MicroCapital Universe Profile: The World Bank Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group`
MicroCapital Universe Profile: International Monetary Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Monetary+Fund+%28IMF%29
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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