NEW DELHI, India, December 18 /PRNewswire/ -- 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.

(Photo: http://www.newscom.com/cgi-bin/prnh/20091218/371478 )

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

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