Micro insurance provides risk protection through low-cost insurance policies to low-income groups. It works by transferring risks through low premiums and limited coverage. Micro insurance covers life, health, disability and agriculture risks and is distributed through group policies for organizations like women's associations and cooperatives. While it offers opportunities for growth, challenges include high transaction costs, lack of tailored products, and need for new regulations and customer education.

1. 1
Micro Insurance
An Approach to Serve the Poor

2. 2
Low – income groups are invariably
exposed to innumerable risks. Micro
insurance works on the phenomenon of
risk transfermechanism characterized
by low premiums and low coverage
limits.

3. 3
Introduction
 Risk protection
 Low premiums and low coverage limits
 Contribution to economic and social inclusion

4. 4
Need for Micro Insurance
 Low income household are predisposed
 To protect themselves and their families
against different risks
 Poor need to be seen as a market
 Developed countries and Developing
countries
 New concept for the bottom of pyramid

5. 5
Characteristics of Micro
Insurance
 Group insurance schemes
 Women’s associations, saving and
credit groups, cooperatives and the like
 Flexible mode of premium payments
 Distribution channel

6. 6
Products
 Life micro insurance
 Health micro insurance
 Disability micro insurance
 Agriculture micro insurance

7. 7
Opportunities
 Potential area growth and development
by insurer and practitioners
 New distribution channel
 Self-employed
 Public and private insurance player

8. 8
Challenges
 Transaction cost
 High administrative cost
 Distribution systems
 Distribution systems of most insurers not designed to serve low
income market
 Products
 Absences of exclusive products
 Regulatory Environment
 Require new regulatory environment
 Customer Education and Awareness
 Reinsurance
 In order to minimize the risk
 Fraud
 Customer and channel partners

9. 9
Conclusion
 Poor no longer consider as non
bankable
 Subset of microfinance
 Combination with savings and micro
credit

10. 10
Thank you…