Helping Communities Manage risks from the ground up.

The Micro Insurance Academy (MIA), a project of Sarvajan Unnati Bodhini Charitable Trust, is a not-for-profit organisation fully dedicated to providing structured technical assistance in microinsurance domain-knowledge.

• We undertake cutting-edge Research on microinsurance and all socio-economic aspects of community based insurance schemes, and publish in peer-reviewed journals.
• We offer Structured Technical Assistance to grassroots organisations and development agencies around the globe to set up Micro Insurance Units.
• We carry out Training programmes for professionals in the field and organisations who want to know more about the opportunities and workings of microinsurance as well as (re)insurance for microinsurance schemes.
• We provide Advisory Services to international and local NGOs, governments, international organisations and donor agencies.
• We work towards strengthening networks of organisations and carry out Advocacy activities to bring forward the agenda of microinsurance at the global level.

Microinsurance is a means of financial protection that targets low-income communities generally excluded from public and private schemes. Protection is provided in exchange for regular premiums proportionate to the likelihood and severity of the risk involved. The types of products offered typically range from health, life, livestock, crop and weather insurance. Through community risk pooling and self-management of the microinsurance schemes, poor people have access to tailored benefit packages at low premium levels.

Microinsurance schemes provide insurance to entire households and communities en bloc rather than just individuals. This spreads risk more evenly ensuring a more sustainable microinsurance unit. Claims processing and distribution are faster than in commercial insurance schemes due to local verification and community management of claims. Additionally, empowerment of local members to carry out the operation will reduce administration costs. Typical administration loading uses 35% - 47.5% of the premium to pay for non-risk elements such as agency commissions, operational costs, and profit. We aim to reduce the administration loading by at least 10 %.

No, the MIA does not sell insurance products or act as an insurance provider. Instead, the MIA supports the process of establishing community-based microinsurance schemes through partnerships with grassroots organisations, service providers, governments, and other relevant actors.  

Community members come together to decide which set of benefits are most appropriate for the community as a whole. The decision is based on local needs, their willingness to pay, and supply and demand of services. The MIA has developed 'game-like' tools to help community members manage the trade-offs in determining which benefits are the most essential. The tools are gender sensitive and can be used by both illiterate and innumerate persons.

Yes. In 2009, the MIA conducted a comprehensive baseline study in Nepal and found the poorest quintile are willing to pay 1.2% of their Monthly Per Capita Consumption (MPCC). A 2005 survey found that poor communities in India are willing to spend approximately 1.5% of their annual income for a benefit package that provides broad coverage at low cost levels.

Low-income households are commonly faced with high out-of-pocket expenditures on health care, funerals, and agriculture losses. In response to these expenses, they may be forced to borrow money at high-interest rates or sell productive assets. By addressing this challenge through microinsurance, the MIA is contributing towards MDG 1: Ending Poverty and Hunger. The micro health insurance schemes supported by the MIA are inclusive of children and  maternal health services, thereby seek achievement of MDGs 4 and 5: Child and Maternal Health. Our commitment to knowledge-sharing and cooperation with other actors in the microinsurance community shows efforts in line with MDG 8: Achieving Global Partnerships.

The MIA has many innovative features built into its model of microinsurance, which is designed to increase efficiency and effectiveness.

• Bottom Up: The community members are actively involved in the planning, implementation and operation of the microinsurance scheme. This approach strengthens local capacities and reduces dependence on external assistance. 
• Tailored: The MIA calculates premiums on the basis of baseline study results and the beneficiaries' choice of package design. This creates an optimal match between local needs, willingness to pay, and supply and demand of local healthcare services, thereby increasing the value of the end product.
• Inclusive: En-bloc affiliation leverages solidarity within the community and households to allow high-risk groups to access services under the scheme. By encouraging en-bloc affiliation we combat the challenges of adverse selection and moral hazard.

To support the MIA's efforts in achieving social and financial protection of the poor, you can:

1. Partner with us: If you feel that the MIA's activities would compliment those of your organisation or community, please Contact Us for further information.
2. Work with us: Please see our available job postings.
3. Intern with us: Please see our available internship positions.
4. Donate: The MIA graciously accepts personal donations and grants. Please Contact Us for more information.