“MILK Brief #18: Doing the Math with Property Microinsurance in Coastal Colombia;” by Barbara Magnoni and Derek Poulton; published by Microinsurance Centre; October 2012; 2 pages; available at: http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/914-condensed-milk-18-doing-the-math-with-property-microinsurance-in-coastal-colombia.html
This brief examines Mapfre Colombia’s home and microenterprise property insurance and its performance following a weather-related disaster. The study finds that the products did not help clients recover from flood costs but did assist them in retaining access to formal loans. The average client used the majority of the insurance payout to make payment on a loan from Fundacion Delamujer, the microfinance institution (MFI) delivering the insurance to clients. The study also finds that, compared with other studies addressing life insurance, family and friends played less of a role in assisting flood victims in their financial recovery from the disaster.
“Portfolio Reviews: Resource Guide for Funders;” by Barbara Gahwiler and Alice Negre; published by CGAP (Consultative Group to Assist the Poor); December 2012; 43 pages; available at: http://www.cgap.org/publications/portfolio-reviews-resource-guide-funders
This document provides a technical guide for organizations that fund microfinance institutions (MFIs) to create a review of funder’s portfolio. The review uses financial and social performance indicators to rate MFIs regarding the following: (1) sustainability, (2) relevance of project design and (3) quality of product delivery. The first section of the guide provides a description of the objectives and characteristics of a portfolio review, and the second section discusses how a portfolio review can help funders. The authors then give a step-by-step explanation of the typical process of creating a portfolio review and advice on how to best implement it.
“Global Microfinance Ratings Comparability;” by Julie Abrams; published by the Multilateral Investment Fund; September 2012; 36 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.60063/Final%20Report%20Global%20Microfinance%20Ratings%20Comparability.pdf
This publication discusses financial performance ratings developed by four ratings agencies that specialize in microfinance: MicroRate, Micro-Credit Ratings International, Planet Rating and MicroFinanza Rating. The document reviews the rating systems used by each and proposes replacing the four different names the organizations use for their ratings with the standardized name “Microfinance Institutional Rating.” The systems would retain their rating grades, lettering systems and proprietary methodologies, which would all appear in a table intended to allow for comparisons among the four systems. The publication reviews the four different systems, noting their similarities and differences as well as the way they were developed. The author concludes that a common product name and “rating grade comparability table” will increase the utility of ratings for MFIs, investors and all others who use these ratings.
By Charlotte Newman, Research Associate
About CGAP (Consultative Group to Assist the Poor)
CGAP (Consultative Group to Assist the Poor) is a US-based nonprofit policy and research center dedicated to providing financial access to poor people worldwide. CGAP is supported by approximately 30 development agencies and private foundations. Its mission is to provide market intelligence; promote standards; and offer advisory services to governments, microfinance providers, donors and investors. CGAP reported total revenue of USD 29.5 million for the fiscal year ending June 2011. CGAP is co-located with the offices of the World Bank Group in Washington DC.
About Multilateral Investment Fund
Multilateral Investment Fund (MIF) was founded in 1993 by the US-based Inter-American Development Bank (IDB). Now a member of the IDB Group, MIF has 39 donating member countries in the Americas, Europe and Asia. Since its inception, MIF reports having approved 1,600 projects in 19 countries, disbursing approximately USD 100 million per year in grants, equity and loans.
Sources and Additional Resources:
“MILK Brief #18: Doing the Math with Property Microinsurance in Coastal Colombia,” http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/914-condensed-milk-18-doing-the-math-with-property-microinsurance-in-coastal-colombia.html
“Portfolio Reviews: Resource Guide for Funders,” http://www.cgap.org/publications/portfolio-reviews-resource-guide-funders
“Global Microfinance Ratings Comparability,” http://www.microfinancegateway.org/gm/document-1.9.60063/Final%20Report%20Global%20Microfinance%20Ratings%20Comparability.pdf
MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
MicroCapital Universe Profile: Multilateral Investment Fund
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Multilateral+Investment+Fund+%28MIF%29
MicroCapital.org story, December 18, 2012: “MICROFINANCE PUBLICATION ROUND-UP: Microinsurance for Microfinance Institutions; Trends in Microfinance Investments; Inclusive Insurance Markets,” https://www.microcapital.org/microfinance-publication-round-up-microinsurance-for-microfinance-institutions-trends-in-microfinance-investments-inclusive-insurance-markets/
MicroCapital.org story, December 12, 2012, “MICROFINANCE PUBLICATION ROUND-UP: Trends in Cross-Border Funding for Microfinance; Microinsurance Among Microcredit Groups in Tanzania; Asian Development Bank Interventions Fail to Reach Enough Poor People,” https://www.microcapital.org/microfinance-publication-round-up-trends-in-cross-border-funding-for-microfinance-microinsurance-among-microcredit-groups-in-tanzania-asian-development-bank-interventions-fail-to-reach-enough-poor/
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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