Z Zurich Foundation (the corporate responsibility arm of Zurich Financial Services Group) just announced a CHF 3 million (USD 2.8 million) grant to the International Labour Organization’s Microinsurance Innovation Facility.  The grant aims “to facilitate the development of innovative approaches to provide better insurance coverage to more low-income people in a cost effective way.”

This is exciting news. The Microinsurance Innovation Facility is a clear leader in the microinsurance space.  The Facility provides innovation grants to help organizations develop new products and models by covering the start-up costs and initial operating losses; seems like a smart use of smart-subsidies.  The goal is for each project to be sustainable by the end of the grant period, which usually spans three years. 

The Facility has completed three rounds of funding to a grantee community working in diverse geographies and functional areas.  The Facility is now accepting applications for their fourth round of innovation grants.  This call has an emphasis on health insurance and distribution channels.

The Facility is also pushing knowledge creation through thematic studies that focus on understanding the major challenges facing the sector.  FAI is partnering on one such study that examines consumer insurance education.  The study includes a review of the landscape of insurance education programs and an in-depth analysis of select institutions.  Results are expected in the next couple of months.  Stay tuned.

Looking to the future, much will be gained by adding serious impact evaluation to their agenda.