Development of Integrated Systems of Social Protection

Subsidies can enable the development of microinsurance. Short-term and on-going subsidies can be used to achieve public policy objectives of donors and governments. Subsidies can promote innovation or contribute towards infrastructure development in microinsurance, for example when governments invest in indices for use in agricultural insurance programs to support rural livelihoods and agricultural development. Subsidies for microinsurance can, especially when it is not possible or desirable to create a pure market-based solution, also contribute to affordable and appropriate protection to low-income households. The purpose of the thematic study is to explore the case for subsidies in microinsurance and analyze how subsidies can be efficiently designed and implemented to support microinsurance in achieving the development goals of governments or donors, such as financial inclusion and social protection. A key objective for the study is to define “smart” subsidies and provide a framework to measure what makes it “smart”. It will use the framework to review existing schemes that use subsidies in microinsurance with specific reference to the scheme’s context. The study will examine the pitfalls to avoid when designing schemes – these could include product design issues as well as operational challenges.

Project symbol

GLO/12/37/GIZ

Admin unit

EMP/SFP

Start date

01/12/2012

End date

30/09/2013

Total allocation

40244

Total expenditure

Status

Closed

40244

Development Partners

Germany, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Country/Countries

Global

Outcomes

Employment Promotion