Integrated Risk Management in Microinsurance
MICROFINANCE: AN INNOVATIVE TOOL FOR DISASTER AND RISK REDUCTION, IDRC, ed., 2009
36 Pages Posted: 24 Sep 2009 Last revised: 10 Aug 2010
Date Written: September 23, 2009
Microinsurance can be a tool in Disaster Risk Reduction/Management - but only if it survives the disaster itself. Reinsurance can help microinsurance to survive disasters. However, reinsurers regard the microinsurance entity a risky client and are hesitant to engage in this market. An Integrated Risk Management approach can help a microinsurer to become a better client for reinsurance and thus to obtain reinsurance cheaper - or obtain it at all. However, Integrated Risk Management for microinsurance is insufficiently conceptualized so far. This paper takes a first step by providing examples of risks faced by microinsurance schemes and risk management techniques available to tackle them. It presents the Integrated Risk Management cycle and screens the business process of microinsurance for risks.
Keywords: Integrated Risk Management, Microinsurance, Natural catastrophes, Reinsurance, Risk Management, Covariant Risks, Disaster Risk Management, Enterprise Risk Management, Health Insurance, Insurance
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