Microinsurance is insurance coverage for low-income people. It allows the poor to better handle illness, death and agricultural losses, to which they are particularly vulnerable. However only 11% of low-income people in Latin America and the Caribbean have microinsurance. This means that over 350 million people in the region do not have microinsurance.

Enabling the Poor in Latin American to Plan forthe Future through Greater Access to Microinsurance

WITHOUT

H O W M I C R O I N S U R A N C E F U N C T I O N S

Fall back or deeper into poverty in times of hardship, for example when a family member becomes sick and the family must sell their assets to pay the hospital bill.

Miss opportunities to get out of poverty, such as producing a new and more lucrative crop, because new opportunities are inherently risky.

INCREASEINCOME LEVELS

IMPROVEBASIC HEALTH

TAKE MOREBUSINESS RISKS

INCREASE CROP PRODUCTIVITY

GET MORECREDIT

MANTAINVALUE OF ASSETS

LOW-INCOMEPEOPLE

RECOGNIZERISKS

BUYMICROINSURANCE

POLICY

MAKEREGULAR

PAYMENTS

TO DISTRIBUTIONCHANNEL

(MICROFINANCEINSTITUTIONS, RETAILERS,

CELL PHONES,BROKERS, ETC.

PAYMENTSTRANSFERREDTO INSURANCE

COMPANY

INSURANCECOMPANY

PAYSCLAIMS

ACTUARIESPROVIDE

RISKANALYSIS

GOVERNMENTSPROVIDE

CONDUCIVEREGULATORY

ENVIRONMENT

FEB

PP

√3

WITH

INSURANCECOMPANY ISREINSURED

is working to reach more of the350 million uninsuredlow-income people in Latin Americathrough a four-pronged approach:

with roadmaps for microinsurance regulation and

supervision, catalyzing microinsurance policy change

across the region.

4 COUNTRIESservice providers

o�ering microinsurance through insurance

companies and distribution channels.

40 INDUSTRYand knowledge

of microinsurance increased in

Latin America.

AWARENESS

that are innovativeand developed in new areas

such as agriculture and catastrophes.

MICROINSURANCEPRODUCTS

AT LEAST 700,000

Greatercapacity of the

supply chain

Developmentof high-demand

products

Generationand sharing ofknowledge forLatin America

Strongerregulatory

environment

low-income people in Latin America and the Caribbeanwith access to microinsurance products.

Multilateral Investment FundMember of the IDB Group

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