What is microinsurance?

Microinsurance is a form of health, life or property insurance, which offers limited protection at a low contribution (hence “micro”). It is aimed at poor sections of the population and designed to help them cover themselves collectively against risks (hence “insurance”). Normally, microinsurance schemes are linked to associations (besides non-governmental organizations for instance trade unions, religious congregations and hospitals), whose main area of work puts them in direct contact with the target groups. They may, but must not necessarily, act as the insurance provider: in many cases, they have transferred the risks of the insurance business to a professional insurer.
Climate insurance urged for poor
By Richard Black Environment correspondent, BBC News website, Nairobi
Insurance schemes would deliver financial support much quicker
The UN wants insurance companies to help protect the world's poor against the impacts of climate change.
Insurance-based schemes could make money available to affected communities much faster than traditional aid, its climate meeting in Nairobi was told.
A pilot project in Ethiopia earlier this year insured 62,000 rural families against drought.
Computer models of climate change suggest droughts and floods will become more common across Africa.
Current extreme weather events on the continent affect most severely the livelihoods of people with no access to conventional insurance.
"Every year, the World Bank donates millions in order to repair events and to repair disasters; and we need a step change in the way we manage relief for poorer parts of the world," said Thomas Loster of the Munich Re Foundation, a not-for-profit organisation linked to the re-insurance giant.
"Through public-private partnerships that match seed money from public sources with the skills of the private sector, I believe we can do this by realising new kinds of risk cover across large parts of the developing world."