Micro insurance capacity building for the Nigerian insurance market


The ILO’s Impact Insurance Facility is holding a training titled Unlocking the demand for Micro insurance products: How to deliver what your clients see as value organised by the Facility together with the Centre for Insurance and Financial Management Studies with the support of the Global Index Insurance Facility and in partnership with the GIZ. The training will be will be held on October 21 to 23, 2015 at the Centre for Insurance at Km 40 Lagos Ibadan Express Way, Asese Village, Ogun State, in Nigeria

This training builds on the Facility’s recent work on how to improve client value from microinsurance. Participants will be equipped with the Facility’s PACE tool, which stands for four key pillars of customer value – Product, Access, Cost, and Experience. It looks at the added value of insurance products to their clients by comparing them to competitive products and alternative means of offering protection from similar risks. The training builds on a variety of resources that the ILO has produced during its six years of supporting innovation and research in microinsurance across 35 developing countries.
By the end of this course, participants will:
• Understand what is microinsurance, its types of products and different models used to deliver microinsurance;
• Understand the characteristics and needs of low-income households and how good microinsurance products can address such needs;
• Identify ways that a microinsurance unit can be structured internally;
• Identify success factors and challenges in making microinsurance viable for providers;
• Understand the relationship between client value and viability; and
• Define an action plan on pursuing microinsurance in their organizations.

This is part of the project by the ILO to further accelerate development of inclusive insurance market in Nigeria, increasing penetration and access to insurance for low–‐income households and individuals in Nigeria and to Support NAICOM’s strategies and initiatives to contribute to the National financial inclusion agenda.

Some initiatives have already been undertaken to develop the Microinsurance sector; these includes:
• Establishment of multi–‐stakeholder Steering Committee on microinsurance
• Issuance of Microinsurance guidelines by NAICOM
• Window product approved by NAICOM in the market
• Strategic partnerships such as telco/insurers partnerships, market and Trade association partnership.
• Development of a national action plan and road map for accelerating
Microinsurance development.

Capacity building
The Impact Insurance Facility is leveraging on its six-year experience of managing insurance innovation with 100+ partners, connections to an extensive network, a qualified technical team, leadership in customer-centricity, the Facility has developed a number of demand driven microinsurance courses delivered by technical staff of the Facility and a pool of consultants.

Delivery has mainly direct, occasionally working with various organisations that support the development of inclusive insurance markets. It is a new strategy; the Facility is running a multiplier project that focuses on capacity building of training institutions and transferring the delivery of these microinsurance courses to local training institutions and professionals.

The Facility has already commenced engagement through a signed memorandum of understanding with the College of Insurance and Financial Management. The Facility seeks to engage the College for not less than 3‐4 years. The assistance is as follows:
• Build capacity of a selected Faculty in the delivery of microinsurance courses through a training of trainers programme;
• Working with the college in identify sustainable business model for delivery these courses to reach at least not less than 40 professionals per year

Housed at the International Labour Organization, the Impact Insurance Facility enables the insurance industry, governments, and their partners to realise the potential of insurance for social and economic development. The Facility was launched in 2008 with generous support from the Bill & Melinda Gates Foundation, and has received subsequent funding from several donors, including the Z Zurich Foundation, Munich Re Foundation, the World Bank Group, USAID and AusAID.

Global Index Insurance Facility (GIIF) is a multi-donor trust fund supporting the development and growth of local markets for weather and disaster index-based insurance in developing countries, primarily Sub-Saharan Africa, Latin America and the Caribbean and Asia Pacific, with the support of the Dutch Ministry of Foreign Affairs and the European Union.

The College of Insurance and Financial Management was established about five years ago as the training arm of the Chartered Insurance Institute of Nigeria to develop the human capital of Nigeria’s insurance sector through training seminars and workshops. The College also runs a nine-month Diploma Programme to prepare students for professional exams conducted by the Chartered Insurance Institute of Nigeria and part-time Certificate courses.

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