MEDIA RELEASE PR37652
National Microinsurance Conference December 10-11th, 2009
NEW DELHI, Dec 18 / PRNewswire-AsiaNet / --
The UNDP, in collaboration with design and policy centres- the
Centre for Insurance and Risk Management (CIRM) and Centre for Micro Finance
(CMF) at the Institute for Financial Management and Research (IFMR) organised
the National Conference on the Status of Microinsurance in India (with
special emphasis on states with low HDI) on December 10th and 11th 2009 in
New Delhi.
The conference brought together key players in the nascent
microinsurance industry. From Mr. K. N. Rao, Deputy General Manager, AIC to
Mr. V. Saikumar, Officer on Special Duty, IRDA, the commitment and passion of
the market and Government, in encouraging microinsurance as a sustainable
tool for protecting the poor, was clear to see. Sector specialists such as
Dr. Somil Nagpal, Health Specialist, World Bank, and Craig Churchill, Head,
Microinsurance Innovation Facility at the ILO highlighted their understated
commitment to microinsurance in the country. Pioneers from the private
sector, such as Mr. Vijay Athreye, Rural Head, TATA-AIG Life Insurance
Company and Mr. Amarnath A, CEO, Bharti-Axa General Insurance Company,
displayed their willingness to develop innovative products and participate in
the process of financial inclusion.
The event also brought together key microinsurance innovators
such as Dr. Nishant Jain, Technical Advisor, GTZ, a key player in the
government's RSBY project and Mr. Mathew Titus, Executive Director, Sa-Dhan.
In India, the penetration of mainstream insurance is as low as
4.7% (as of 2007), the reach of microinsurance is even lower! The national
microinsurance conference was held to discuss and reflect on the steps taken
in bringing vital financial protection services to this vulnerable majority.
In addition, the speakers provided insight on the right way forward for the
industry.
Though there clearly exists an untapped and largely unexplored
market for micro insurance in India, constraints including lack of reliable
data for pricing and the absence of alternate means of assessing risk
involved hinder sector growth. Furthermore, the problem of the distribution
and servicing in areas with little adequate infrastructure, or even at larger
scales, is ever present.
The participants discussed various innovations developed to
counter the above challenges and deliberated on other issues faced in
bringing microinsurance to varied livelihoods and communities, from
fisheries, to livestock, from the migrant labourer to the tenant farmer.
Promising solutions put forward included community based health insurance
schemes, such as those practiced by VIMO SEWA, weather and NDVI based
insurance schemes, currently being researched by CIRM, and a 'retail'
programme called Max Vijay, where insurance premiums could be 'topped up'
like mobile phones, currently trialled in Agra by Max New York Life Insurance
Company
The conference was well received by all involved. Craig
Churchill, ILO quotes, "I want to thank the organizers of this national
microinsurance conference for bringing together a compelling set of
presentations. India is the world's microinsurance laboratory"
The organizers plan to host this event annually and also trace
the progress of microinsurance on a year on year basis through the
development of 'state of the sector reports'
Rupalee Ruchismita, Executive Director, CIRM concludes, 'This
conference was a special effort to focus on low HDI states and identify ways
in which innovations could circumvent infrastructural challenges to address
vulnerabilities of the low income population. In the coming years, CIRM will
collaborate with the UNDP to focus on these states to catalyse microinsurance
innovation that will aim to increase access to formal risk management
strategies among poor households'
For more information contact:
Janani Akhilandeswari at Janani.akhilandeswari@ifmr.ac.in
Deepti K C at deepti.kc@ifmr.ac.in
+914442892787
SOURCE: IFMR Trust
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