According to new research released by the Munich Re Foundationand GIZ, the microinsurance sector in Asia and Oceania has reached172 million lives and properties covered, representing a 40% annualgrowth rate between 2010 and 2012. India is leading the market atover 100 million, whilst Malaysia and Indonesia emerge as havingthe most vibrant microinsurance markets with a growth rate of 185%and over 100% respectively, over the same time period.

Despite these encouraging achievements, the microinsurancesector today covers less than 5% of the people living in Asia andOceania. “When low-income people are unable to manage risk, theycannot break out of the cycle of poverty” says Craig Churchill,Chair of the Microinsurance Network and Head of ILO'sMicroinsurance Innovation Facility. For this reason, “access toeffective insurance by low income people is essential tosustainable development.”

Currently life insurance is the main risk for which people arecovered (83m), followed by accident (77m), health (27m),agriculture (26m), and property (7m) insurance. In addition, over1.6 billion are estimated to be covered by subsidized schemesreferred to as “social microinsurance” or social protectionschemes. “Market-based microinsurance needs to be complemented byschemes with governmental involvement to increase outreach,especially in the field of agriculture and health. It is importantthat approaches based on insurance principles are being developedjointly, involving the insurance industry, regulators and clientrepresentatives, as well as donors,” comments Dirk Reinhard, ViceChairman of the Munich Re Foundation. Capacity development alongthe value chain is a key factor for the sector going forward.According to Dr. Antonis Malagardis, Programme Director of the GIZProgramme 'Regulatory Framework Promotion of Pro-poor InsuranceMarkets in Asia' (RFPI Asia) “The capacity development strategy ofRFPI Asia prioritises the development of trainers and experts oninclusive insurance regulation, particularly in key areas such asagriculture, disaster risk management, SMEs and Islamicinsurance.”

The 9th International Microinsurance Conference, taking place inJakarta, Indonesia, November 12-14, will bring together around 400experts on microinsurance. The conference, co-hosted by the MunichRe Foundation, the Microinsurance Network, Insurance Council ofIndonesia (DAI) and the Indonesian Financial Services Authority(OJK) will focus on the status and trends of microinsurance in theregion and globally, covering critical topics such as distribution,business models, and investments.

OJK, together with DAI, recently launched a blueprint to supportmarketing and implementation of micro-insurance products acrossIndonesia by 2016. “The conference is a great opportunity forIndonesia to develop our microinsurance sector and learn from theexperiences of our peers across the globe” says KorneliusSimanjuntak, Chairman of DAI and Chairman of the General InsuranceAssociation of Indonesia (AAUI). “The conference is particularlytimely given the joint effort of OJK and the insurance industry todevelop microinsurance in Indonesia, as part of our financialinclusion programme” comments Firdaus Djaelani, CEO of Non-BankFinancial institutions (NBFI) Supervision and Member of the Boardof Commissioners OJK. “We hope many of our insurance providers willhave the opportunity to attend and learn from microinsuranceexperts worldwide.”