Awareness Gaps Slowing Micro Insurance

THE growth of the insurance industry is sidelining the micro-insurance segment, a problem precipitated by low levels of awareness about the sub sector. 

"Micro insurance is vital in the development of our insurance industry. But it is hindered by the existing awareness gaps," Juliet Kyokunda, the regional marketing manager of Micro-Insurance Agency (Microensure), said recently. 

Microensure is a multinational company that promotes micro-insurance. 
The firm, which covers over 3.4 million people in 10 countries in Africa and Asia, also protects economically active, low-income earners against specific perils. 

Edgar Muzahura, the country manager, said micro-insurance is doing well in Tanzania, Malawi, Ghana and Kenya. 
"In Uganda, we are constrained by the low levels of appreciation, but we plan to step up our sensitisation campaign," he said. 

"We seek to serve the marginalised who live on $4 per day or less in developing countries and provide a safety net to reduce economic setbacks," Muzahura added. 

About 80 million out of the world's 2.5 billion poor are covered by micro-insurance. 

In India and China, where organisations serve nearly 30 million micro-insurance clients, the percentage of the poor insured is below 3%. 

In Africa, however, the figure is much lower. Only 0.3% of the continent's poor are insured. 

According to recent data with Opportunity International, in 23 of the poorest 100 countries in the world, there is no micro -insurance. This represents an unserved population of 370 million. 

Microensure was founded in 2006 as a subsidiary offering insurance products by the Opportunity International, a leading pioneer of microfinance which works with indigenous organisations for the well-being of the working poor.