Blue Marble Microinsurance leads industry consortium to develop risk protection in developing world | WRIN.tv

Blue Marble Microinsurance (formerly Microinsurance Consortium and Venture Incubator) was established during the World Economic Forum in January 2015 to provide insurance and risk protection in developing countries. WRIN.tv spoke with Blue Marble CEO Joan Lamm-Tennant during the IIS Global Insurance Forum at the United Nations, about microinsurance, the problems it can address, and where Blue Marble will focus in the future.

According to Ms. Lamm-Tennant, “microinsurance is small premium insurance protection intended to reach the underserved, providing them relief following a disaster. Microinsurance targets small-scale farmers, artisans, and shopkeepers, who have specific risk protection needs.”

Ms. Lamm-Tennant says microinsurance solves problems in the developing world by stabilizing consumption. Incentives are embedded into microinsurance products, “engaging the underserved as risk managers.”

In order for microinsurance to be successful, there is a need for public-private partnerships. Ms. Lamm-Tennant sees a number of hurdles that have to be overcome:
• Cost efficiency
• Partnering with technology partners
• Addressing the lack of trust
• Financial education
• The ability to price without data

Blue Marble Microinsurance is a consortium with American International Group, Aspen Insurance, Guy Carpenter together with Marsh & McLennan Companies, Hamilton Insurance Group, Old Mutual, Transatlantic Reinsurance, XL Catlin and Zurich. They are developing service entities (or ventures), which will allow the carriers to enter the market with risk capital. Ms. Lamm-Tennant says the service entities will include everything from product, to distribution channels, to social impact metrics, etc. She notes that microinsurance has been used effectively in Africa, South America and Asia. Blue Marble intends to announce its first venture in November.

For more of our coverage of the IIS Global Insurance Forum, visit the WRIN.tv On Demand Library.