Microinsurance NOTE 1: What is Microinsurance?

Because most low-income people in developing countries are self-employed or employed in small firms, they have not had access to insurance products that fit their needs through adequate delivery channels, premiums, coverage, premium collection, and product simplicity. Fortunately, there are a variety of new innovations that hold the promise of both reaching the poorest and being profitable. This is the first in a series of short notes exploring this exciting new expansion of access to financial services. This paper explores MI history, defines microinsurance, and provides information on MI policyholders and the role of donors.