Microinsurance Research Volunteer

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The American Red Cross (ARC) International Services Department (ISD) seeks to prevent and alleviate human suffering around the world by responding to disasters, building safer, more resilient communities, and educating future humanitarians. In the coming years the American Red Cross will deepen and expand its programming around the world while also working to strengthen the global Red Cross Red Crescent network, in order to deliver vital help and hope to some of the most vulnerable communities.

Description:

ARC is interested in exploring shared value partnerships with the private sector to further its mission in innovative and impactful ways. Shared value is defined as "the policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates[i] ."[1] These partnerships have the potential to support the humanitarian mission of the Red Cross while also promoting the bottom-line objectives of commercial partners. The ideal shared value partnership will allow both ARC and private sector organizations to address their individual needs and challenges by collaborating to share those products, services, and relationships that each organization is uniquely able to provide.

ARC is particularly interested in exploring the potential of shared value through microinsurance projects. Microinsurance is a mechanism that protects the developing world’s low-income workers - most often those underserved by traditional insurance schemes - against risk such as disasters and illness in exchange for payments tailored to their individual needs, income, and level of risk. [2]

Before deciding on next steps, ARC wishes to learn more about the current microinsurance environment to better understand the impact it has had as well as what role ARC could play in promoting it. To this end, the following questions should be addressed:

• · Is microinsurance being discussed or pursued by other members of the Red Cross movement (International Federation of Red Cross and Red Crescent Societies [IFRC], National Societies, the Livelihoods Centre)?
• · What information exists on the efforts of large donors (government agencies, multilateral institutions, humanitarian organizations) to promote microinsurance? Are there best practices, telling case studies, or commonly accepted examples of challenges or successes?
• · What are the larger microfinance institutions that operate globally (such as Opportunity International and Finca) saying about microinsurance and its role in their programs?
• · What are the current challenges faced in microinsurance schemes? How is ARC uniquely situated to help address them?
• · When supporting microinsurance schemes, what challenges is ARC likely to face that other organizations would not?

This research will be done independently but with guidance from ARC colleagues in Management and Planning, Quality and Learning, and the Global Disaster Preparedness Center. The resources below are not exhaustive, but will provide guidance on activities and sources of information that can help answer these questions.

Skills and Qualifications:

• Current student or recent graduate working toward a BS or MS degree in International Development, or related field
• Relevant coursework might include Microfinance, Microinsurance, Research Methodologies, Economics, etc.
• Strong research, writing and editing skills
• Proficient in MS Office programs
• Flexibility and a high degree of attention to detail is required
• Must be highly organized and able to work independently

For general information on microinsurance:

• · Consult the Microinsurance Innovation Facility
• · Consult Munich Re

To determine Red Cross activity in microinsurance:

• · Consult the IFRC’s Livelihoods Resource Centre .
• · Talk with Emma Delo, the livelihoods coordinator for the IFRC in Geneva.
• · Talk with the IFRC Secretariat about where the microfinance discussions that former IFRC President Juan Manuel Suarez Del Toro proposed when he was IFRC President have gone and what the current thinking with the Secretariat is on the microfinance and microinsurance

Relevant Multilateral Financial Institutions to research or consult directly with:

• · Opportunity International
• · Grameen Bank
• · Finca
• · Fonkoze

[1] "Creating Shared Value" by Michael Porter and Mark Kramer. Harvard Business Review

[2] http://www.microinsurancefacility.org/about/what-is-microinsurance