MicroInsurance Centre at Milliman

The Magical Balance ? Striking a balance between profit for insurers and value for customers is key. Our focus is on creating solutions that benefit both ends of the value chain. This philosophy recognizes that there must be value on both ends of the value chain: there should be long-term, reasonable profit for insurers and distributors on one end, and a product that provides clear value for low-income customers on the other. Learn more about our MicroInsurance Centre at Milliman here: https://lnkd.in/dbCmhfy5

We’re LIVE at the African Takaful and Non-Interest Finance Conference in Lagos! ?? Join Michael J. McCord Managing Director of the MicroInsurance Centre at Milliman, as he shares insights on Micro Takaful and Collaboration for Sustainable Islamic Finance ?? Don’t miss out—join us here: https://lnkd.in/dRADwW3R Let’s shape the future of inclusive finance together!

??We have exciting news! ?? We're pleased to announce that Michael J. McCord, our Managing Director at the MicroInsurance Centre at Milliman, will be speaking at the African Takaful and Non-Interest (Islamic) Finance Conference on November 12-13, 2024. Michael will bring his expertise to two critical panels: ??Micro Takaful: Enhancing Economic Stability for Low-Income Communities ??Leveraging Technology for Resilient Islamic Finance and Takaful Services With the theme “Unveiling the Convergence: Islamic Finance for a Sustainable and Equitable Future,” the conference promises to provide valuable insights into the future of Takaful and Islamic finance in Nigeria and Africa. We’re excited to contribute to this important dialogue on building sustainable, inclusive finance solutions. Stay tuned for updates from Lagos! #IslamicFinance #Takaful #Microinsurance #FinancialInclusion #SustainableFinance

?? Exciting News! Our Managing Director, Michael McCord, will be speaking at the 2024 SOA Regional Symposium in Riyadh. In this closed meeting, experts will gather to discuss the evolving role of microinsurance in the Middle East, Africa, and Pakistan (MAP) region. Michael’s session, "Recipe for Microinsurance Advancements in MAP Region: The Need for Customized, Value-Driven Solutions," will explore strategies for creating and pricing scalable, impactful microinsurance products. Key topics include case studies, Takaful integration, and the role of mobile technology. We're looking forward to seeing how actuaries can shape accessible and meaningful microinsurance solutions in the MAP region! To register for the event, click here: https://lnkd.in/dgg42feY #MicroInsurance #SOA2024 #ActuarialScience #InclusiveInsurance #RiskManagement

Last week, we concluded #ICII2024, with four days full of critical discussions. Here’s a recap of the morning of Day 3, which featured 12 parallel sessions: ???Session 1: Top-Line and Bottom-Line Strategies for Inclusive Insurance Facilitated by Lemmy Manje (FinProbity Solutions Limited ), this session included Ovia K. TUHAIRWE (RADIANT YACU), Gideon Ataraire (Microinsurance Master), S M Ziaul Hoque, FLMI (Chartered Life Insurance), Mohammed Ali Ahmed (EFU Life Assurance Ltd.), and Laura Elena Rosado (AXA EssentiALL). Panelists shared strategies for reaching underserved populations, focusing on strategic partnerships. For instance, Chartered Life Insurance in Bangladesh partners with organisations like Brac and USAID to expand its reach and effectively serve low-income populations. Other key strategies discussed included effective distribution channels, standalone microinsurance units, well-trained teams, and digitisation. ???Session 2: Dealing with Basis Risk – Minimising the Pitfalls of Parametric Insurance Facilitated by Michael J. McCord (MicroInsurance Centre at Milliman), speakers included Andrea Camargo (World Food Programme), Bethwel Murkomen (One Acre Fund), and Alastair Norris (IDF Risk Modelling Steering Group). The panel examined various basis risk aspects, including positive basis risk, illustrated by a drought-based insurance product in Kyrgyzstan that triggered a payout despite some areas not experiencing losses, highlighting the need for precise product design. Conversely, negative basis risk was showcased by an instance in Malawi where index misalignment resulted in unpaid losses, highlighting the need for coordinated policy frameworks to ensure equitable outcomes. Temporal basis risk was also discussed, with an example from Mozambique, where a cyclone struck one day after the coverage period, showing the importance of adaptive policies that align coverage with real risk exposure. ???Session 3: Women, Insurance, Risk Management, and Financial Empowerment Facilitated by Anaar Kara, CFA (CGAP), with speakers Rajvi Joshipura (Self Employed Women's Association), Fatou Fall Giwa (IFC - International Finance Corporation), Astrid Zwick (Global Shield against Climate Risks), and Carlos L. (IAIS - International Association of Insurance Supervisors ), the session discussed the importance of gender-sensitive insurance solutions that reflect women’s roles as caregivers and decision-makers. The panel emphasised collaboration among governments, insurers, and community organisations to develop accessible insurance products. Additionally, innovative climate risk insurance solutions are essential, especially for women in developing countries and informal sectors. The collection and analysis of gender-specific data can help to understand women’s needs, while digital financial services and control over their digital financial tools can improve their access to insurance. NEPAL INSURANCE AUTHORITY (Insurance Regulatory) | Munich Re Foundation

#basisrisk is still a hot issue for #indexinsurance. The idea of basis risk funds came up during Michael J. McCord's cracking session at the #icii2024. Bethwel Murkomen explained that One Acre Fund have used these in Kenya, while Andrea Camargo from World Food Programme asked the important questions: ?? Who should be in charge of such funds? ?? How long should these funds remain in situ? ?? How should the funds be managed? Finally, Alastair Norris reminded us that #indexinsurance, though useful, is a blunt tool and not a replacement for #indemnityinsurance. Munich Re Foundation | Microinsurance Network | MicroInsurance Centre at Milliman | Insurance Development Forum | Subheksya Singh | NEPAL INSURANCE AUTHORITY (Insurance Regulatory)

?? ICII 2024 recap: Addressing the complex challenge of basis risk in parametric insurance. Our panel at ICII 2024 highlighted that basis risk—stemming from spatial, temporal, or product-based gaps—poses major challenges to parametric insurance success. While combining data sources and building robust models can help, product complexity needs careful management to ensure it remains understandable for those it aims to protect. Incorporating complementary risk management tools, like savings accounts and training on better agricultural practices, can also help reduce the weight of basis risk on projects. Basis risk is a nuanced challenge, but with iterative design and continual learning, meaningful progress is possible. Special thanks to our panelists: Andrea Camargo, Alastair Norris, and Bethwel Murkomen for your important examples and contributions to the discussion. Let’s keep this important conversation going! #ClimateRisk #InclusiveInsurance #ICII2024 #ParametricInsurance

At pre-conference Workshop 2 of the #ICII2024 a microinsurance-focused pricing toolkit is being presented that was developed as part of the Global Actuarial Initiative (#GAIN) partnership between MicroInsurance Centre at Milliman and the UNDP to build actuarial expertise in developing countries. The intention of this tool is to provide a set of small, self-contained #pricing models – life and hospital-cash health products – applying actuarial principles to pricing #microinsurance products. International Actuarial Association Microinsurance Network NEPAL INSURANCE AUTHORITY (Insurance Regulatory)

?? We’re just a few days away from our session on Basis Risk at the International Conference on Inclusive Insurance 2024 in Kathmandu, Nepal! We’re looking forward to connecting with experts, practitioners, and enthusiasts in the field of inclusive insurance. Make sure to join us on Day 3 (October 23rd) from 9:00 to 10:30 AM for our session: “Dealing with Basis Risk: Minimizing the Pitfalls of Parametric Insurance.” Basis risk remains one of the biggest hurdles in scaling index insurance solutions for smallholder farmers. This session will dive into practical strategies to overcome this challenge, with insights from global thought leaders like Andrea Camargo, Bethwel Murkomen, Alastair Norris and Michael J. McCord from the MicroInsurance Centre at Milliman. See you there!

Join UNDP-Milliman Global Actuarial Initiative on October 23rd from 4:00 - 5:30 PM (Kathmandu time) at ICII 2024 for “Growing Global Actuarial Capacity to Support Sustainable Economic and Inclusive Insurance Development.” Hosted by the Actuarial Society of Nepal, this session will explore the critical role of actuarial capacity in enabling sustainable insurance markets in developing countries. ?? In recent years, the United Nations has recognized the importance of effective risk management in sustainable development and the critical role of insurance in achieving this goal. A key component underlying risk management and insurance is actuarial capacity. However, in most developing countries, actuarial capability is weak or non-existent. The challenges these countries face in building actuarial capacity arise from lack of a) supply of actuaries; b) demand for actuaries; and c) the enabling regulatory environment. This session will explore the importance of building actuarial capacity in conventional and inclusive insurance markets. It will discuss key challenges faced by different players and the various interventions adopted to develop actuarial professions in some of the developing countries highlighting Nepal’s experience as part of the UNDP-Milliman Global Actuarial Initiative. It will also examine the critical role of insurance regulators and developing agencies in addressing the actuarial gaps in a more systematic way to ensure sustainable development of actuarial profession and delivery of inclusive insurance. The session will feature: ??Ram Kumar Yadav, CEO, Liberty Micro Life Insurance ??Prechhya M, President, Actuarial Society of Nepal ??Michael J. McCord, Managing Director, MicroInsurance Centre at Milliman ??Pujan Dhungel, Director, NEPAL INSURANCE AUTHORITY (Insurance Regulatory) ?? Don’t miss this opportunity to gain insights on building actuarial capacity for inclusive insurance. #ICII2024 #ActuarialCapacity #InsuranceDevelopment #InclusiveInsurance #SustainableGrowth