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Microinsurance for disaster recovery: business venture or humanitarian intervention? An analysis of potential success and failure factors of microinsurance case studies
To understand what elements of a microinsurance initiative may lead to an increased likelihood of its success as a disaster recovery support mechanism, the report examines characteristics of multiple microinsurance case studies to test whether common trends could be identified.
A review of 40 worldwide microinsurance initiatives from the last 20 years, both successful and unsuccessful, was conducted using the current literature. Examined characteristics were grouped into motivations for product development, insurance type, whether there was a pilot scheme for product launch, product coverage, product bundling, premium subsidisation, networks and partnerships, delivery channels, target markets, community input into the product design and built in education and awareness campaigns. Statistical testing suggested potential relationships between the likelihood of success and a number of varying factors, such as premium subsidisation, the incorporation of an international reinsurer, and the presence of a donor in the stakeholder network.
Moreover, potential links between success likelihood and the motivation for and timing of the initiative launch were discovered. These findings, along with suggestions of minimum metrics for recording the performance of microinsurance programmes over time, are intended to help further the discussion on defining microinsurance, to inform microinsurance initiatives that may be set up to address the challenges of post-disaster transitions to recovery, and to aid in the tracking of longer-term community impact.