ICMIF 5-5-5 Mutual Microinsurance Strategy provides policyholders with safety net against poverty

Thursday, 29 August 2019

Launched in June 2016, the ICMIF 5-5-5 Mutual Microinsurance Strategy (the “5-5-5”) aims to insure 5 million lives in five countries (Colombia, India, Kenya, the Philippines and Sri Lanka) over a period of five years.

Latest data from ICMIF shows that since the 5-5-5 commenced, 1.7 million previously uninsured poor and vulnerable people have been provided with mutual microinsurance protection. These individuals now have an insurance “safety net” to protect their livelihoods and prevent them from slipping into poverty if they are faced with unexpected risks.

Below are the stories of two policyholders from the Philippines and India who have been covered by mutual microinsurance as a result of the 5-5-5:

Rebeca Sollestre (CARE MBA policyholder, the Philippines)

Rebeca Sollestre (pictured), 62 years old, lives with her two grandchildren in Brgy Cawayan in Quezon (the Philippines). She works at a piggery and tends to the fields that she and her 12 siblings share. Rebeca has been a member of ICMIF member organisation CARE MBA since 2017. Sadly, Rebeca’s husband recently passed away due to a sudden heart attack. However, she received a claim payment of around PHP 15,000 (USD 300) from CARE MBA, which she used to cover the costs of his burial, and which enabled her to continue caring for her grandchildren.

She explains "This kind of service is a huge help to poor people like me." (Read Rebecca’s full story).

The 5-5-5 project in the Philippines aims to reach 1 million people with microinsurance. To achieve this, ICMIF has partnered with local member RIMANSI, an association of 18 Microinsurance Mutual Benefit Associations (Mi-MBAs); Mi-MBAs are mutual entities licenced to deliver microinsurance in the Philippines. RIMANSI is in turn building the capacity of its Mi-MBA network, providing technical support and training to Mi-MBA organisations such as CARE MBA, to enable Mi-MBAs to reach many more individuals like Rebeca Sollestre with microinsurance. CARE MBA is a member of both ICMIF and RIMANSI.  

Mr Paramasivam (DHAN Foundation policyholder, India)

Pudhur is an urban area in Madurai, Tamil Nadu (southern India), and currently contains nearly 40 slums. The residents struggle to make a decent living.

Mr Paramasivam has lived in Pudhur for many years; he has a family to support (a wife and two children). He recently felt ill although fortunately he was covered by a health microinsurance policy with the DHAN Foundation, and he therefore visited SUHAM Hospital.

Speaking during his stay in the hospital, Mr Paramasivam explains: “I was asked to provide my health insurance card and since then I have been receiving treatment for the past three days without being charged. Had I been to any other hospital, I would have had to pay for my treatment in advance. With no money in hand, I would have approached a money lender to get the money. Having insurance has helped me in my time of need.” (Hear from Mr Paramasivam).

SUHAM Hospital runs entirely on the efforts of village-level Self Help Groups formed by underprivileged men and women in India. DHAN Foundation policyholders are able to receive treatment at SUHAM hospital without having to make large payments in advance. Through the 5-5-5 in India, ICMIF is working with the DHAN Foundation to reach 1 million people with life or health microinsurance.

Supporting the 5-5-5

The 5-5-5 is currently directly supported by 22 ICMIF members and other external partners through a programme of financial donations and Technical Assignment secondments.

The technical assignments enable employees from ICMIF member companies to complete assignments in one of the 5-5-5 countries where they can assist with initiatives such as business plan development, staff training and impact assessment.

Please contact Naomi Davison, Communications Assistant, Emerging Markets, ICMIF to find out more about how your organisation can benefit from making a real impact to the livelihoods of low-income communities in emerging markets, as well as impacting on at least five of the United Nations Sustainable Development Goals.

The governance of the 5-5-5 is overseen by The ICMIF Foundation, a registered charity in England and Wales.

First AOA/ICMIF Microinsurance Seminar – at the Biennial Conference

A one-day microinsurance seminar will take place on Monday 11 November 2019, prior to the ICMIF Biennial Conference 2019 (12-15 November 2019), at the Cordis Hotel in Auckland. The seminar will take place from 09.30 to 15.00 and will be jointly hosted by ICMIF and the ICMIF Asia and Oceania Association (the AOA).

The theme of the Seminar will be: “Connecting to emerging markets: benefits and opportunities for ICMIF members”. The seminar will be conducted in English only.

The seminar will offer the opportunity to learn more about the 5-5-5 Mutual Microinsurance Strategy.

The seminar will also look at ways in which supporting mutual microinsurance projects in emerging markets can help ICMIF members to meet the United Nations Sustainable Development Goals (SDGs).

Speakers and seminar participants will also share inspirational stories of how ICMIF members in emerging markets are making a difference to the livelihoods of the poor and how, with the help of ICMIF members from developed markets, their work is having a great social impact and helping lift people out of poverty.

Read more about the Microinsurance Seminar and view the draft agenda here.