DHAN Foundation creating security for those who need it most in the world

Thanks to The ICMIF Foundation’s 5-5-5 Programme, DHAN Foundation (India) has provided one million mutual microinsurance policies to people excluded from formal insurance in India: predominantly women and those over the age of 68 years old. DHAN Foundation began offering microinsurance products in 1999 and has scaled its offering and products over the years considering the huge impact that timely support has to low-income families in need. DHAN Foundation views microinsurance as one part of a comprehensive risk strategy for its members and a lot more can be done in India with the right support to help them scale.

It’s about trying to connect the dots, not create new structures

Microinsurance is both a method and a tool. In fact, microinsurance is a proven powerful method in poverty alleviation and supporting women into move into the formal economy.

Working with strategic partners around the world to help build financial resilience in underserved communities is important.

The ICMIF network is a family of cooperative and mutual insurance companies: but how do we connect the dots so that we are not duplicating but also reinforcing and supporting each other’s work? The Innovation Challenge Fund provides a solution.

ICMIF members can drive the microinsurance development agenda globally

Over the last 10 years the UNDP has put a lot of effort into putting financial resilience at the heart of communities and government in its development endeavours. It views financial resilience as fundamental to sustainable development.

Through the Innovation Challenge Fund, UNDP and The ICMIF Foundation will work together in 4-5 countries over next 2-3 years with USD 300,000 provided by UNDP which has been matched by ICMIF members. The purpose of the Fund is to find innovations within mutual and cooperative community which can be supported with funds and technical assistance to find new ways of doing business or add scale to what is already being done to help build financial resilience for underserved communities.

The UNDP has confidence in The ICMIF Foundation’s ability to deliver and sees great potential in the Innovation Challenge Fund. Looking to the future, it has already agreed to match-fund up to USD 4 million with ICMIF members ability to support. The ultimate goal is to work across 20 countries on 40 microinsurance projects.

The uniqueness of The ICMIF Foundation

The ICMIF Foundation offers a uniqueness that no one other organisation can provide in that it is owned by cooperative and mutual insurance companies and purpose led. It brings something to table that commercial insurance providers cannot. It has the potential to be a powerful tool in helping to impact the UN Sustainable Development Goals (SDGs) with the support of ICMIF members.

Supporting the Innovation Challenge Fund makes good business sense

Co-operators (Canada) rationale for supporting the Innovation Challenge Fund:

• Helping to build the cooperative system globally – the origins of many microinsurers in emerging markets are similar to those of the Co-operators 77 years ago.
• Demonstrating the purpose of Co-operators and attracting and retaining staff.
• Contributing to Co-operators own journey in helping to achieve the SDGs.

How ICMIF members can support the Innovation Challenge Fund

• Make a donation to The ICMIF Foundation and indicate it should be focussed on the Innovation Challenge Fund. Any donation is impactful – the current funding cost per insured is just USD 0.63.
• Support a specific initiative – on average an initiative will require USD 40,000 (match-funding of UNDP contribution per initiative).
• Make a larger donation and be involved in multiple initiatives.

Session panellists

• Anna Tibblin, Secretary General, We Effect (Sweden)
• Jan Kellet, UNDP Lead, Insurance and Risk Finance Facility, United Nations Development Programme (UNDP)
• Ahila Devi, CEO, People Mutuals, DHAN Foundation (India)
• Rob Wesseling, President and CEO, Co-operators (Canada) and Chair of The ICMIF Foundation, moderator