ICMIF
International Cooperative &
Mutual Insurance Federation
www.icmif.org
Key points
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About ICMIF
Linkage with Takaful concept
Avenues for collaboration
The development function of ICMIF
Importance of insurance to poverty alleviation
Providing microinsurance products
The need and possibilities in Muslim
countries
About ICMIF
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Established in 1922
Not-for-profit voluntary trade association
Represents 127 members from 67 countries
Member driven
“Strengthen and promote the cooperative and
mutual insurance sector”
Linkage with Takaful concept
• Policyholders co-operate among themselves
for their common good
• Every policyholder pays his subscription to
help those that need assistance
• Losses are divided and liabilities spread
according to the community pooling system
• It does not derive advantage at the cost of
others
Avenues for collaboration
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Reinsurance
Information
Training
Establishing Takaful windows with members
Development
ICMIF development function
• Objectives
Provide support to small members
Assist cooperative bodies to establish
insurance operations
Increase access to insurance to excluded
sectors of society
ICMIF development function
• Methodology
ICMIF Fees
Technical expertise provided by members
Development projects led by members
Partnerships with national and international
donor agencies
ICMIF development function
• Progress
Established 25 people-orientated insurance
organisations
Unique Insurance Company – Ghana
Financial support received for Latin America
Contract to write guidelines on microinsurance
Turkmenistan – State Insurance Organisation
Health Mutual scheme – Mali
Currently involved in 22 countries
“Insurance is being
recognized as an
important tool for
poverty alleviation”
Insurance and Poverty Alleviation
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The poor are the most vulnerable
The impact of losses are more severe
They have minimum means of recovery
Success of microfinance schemes show the
poor can and want to save
• Savings and credit are used unproductively
• The poor need a safety net to escape poverty
Providing microinsurance
The challenges
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Coverage
Regulation
Moral hazard and Fraud
Adverse selection
Education and trust
Technical expertise
Affordability
Retention
Sustainability
Providing microinsurance
The possibilities
• The cooperative microinsurance model
History of organising the poor
Operate for the interest of members by
members
Trust
Ownership and loyalty
Peer pressure
Surplus reinvested or redistributed
Providing microinsurance
• The partner agent model
No-risk fee for microinsurance provider
Better coverage for policyholder
Access to new market
Pooling of risks between informal and formal
sector
Providing microinsurance
• The donor agent model
Access to expertise
Financial sustainability
Guiding hand
The need in Muslim countries
• Social services inadequate or unavailable
• Large sectors of poverty in many Muslim
countries
• Over half of world’s lowest developed countries
have a majority Muslim population
• Increasing inequality in Middle East and Gulf
countries
“Takaful is the second
most important social
institution to counter
poverty and
deprivation”
Omar Fisher,1999
How can we provide microtakaful
products?
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Establish informal microtakaful schemes
Encouragement of pro-poor organisations
Education of government and donor agencies
Involvement of Takaful sector
Technical expertise
Financial assistance
Partner-agent model
“Bear ye one another’s burden”
A Global reach for
local strength
Thank you for your attention