In Mali, unforeseen events like fires, floods, or accidents can have devastating effects on individuals, families, and businesses. The country's reliance on solidarity and community support is insufficient to cover the costs of hospitalizations, business reconstruction, or losses incurred by thousands of farmers affected by drought. As a result, the government and experts are seeking innovative solutions to make insurance more accessible and effective.
The cost of not having insurance is evident in abandoned investments, interrupted activities, and emergency public expenditures. Insurance can help mitigate these risks by pooling contributions and providing financial support to those affected. However, the current insurance system in Mali faces challenges, including high premium costs, limited accessibility, and complex contracts. To address these issues, the government is exploring new approaches, including microinsurance and digital distribution.
The Malian government has established a regional microinsurance framework within the CIMA, allowing for the sale of insurance contracts in local languages and digital distribution. However, the use of mobile money as a payment channel has limitations, and there is a need for clear explanations of insurance guarantees and accessible dispute resolution mechanisms. To increase insurance coverage, the government is considering five key decisions, including the development of a pilot agricultural insurance program.
The proposed pilot program would involve collaboration between farmers' organizations, insurers, meteorological services, banks, and reinsurers. The program would provide guarantees against specific climate-related risks, using verifiable indices to determine payouts. Additionally, the government is considering offering targeted public support for small producers' premiums, with a clear budget allocation. Other initiatives include providing simple protections for independent workers and small enterprises.
The government aims to articulate different insurance schemes, including the Universal Health Insurance Regime, which was established by law in 2018. This regime focuses on social protection, while other insurance schemes address different risks, such as damage, personal injury, or agricultural losses. Building a shared understanding of risks, including mapping flood-prone areas, agricultural statistics, and health data, is also crucial.
To implement these initiatives, the government plans to bring together regulators, insurers, agricultural and professional organizations, banks, payment operators, and consumer representatives to develop a three-year roadmap. The roadmap would begin with a public diagnosis, followed by independent evaluations of pilot programs, and eventually, the expansion of viable solutions. Progress would be measured by indicators such as the number of people covered, premium payments, and claims settled.
Experts emphasize the need for trained professionals, including actuaries, claims managers, agricultural experts, and mediators. The government is encouraged to create an environment of trust, where businesses view insurance as an investment, insurers deliver on their promises, and citizens compare guarantees. By making insurance more accessible and effective, Mali aims to protect families and encourage investment, ultimately promoting economic growth and development.
Key points
- The Malian government is seeking to expand insurance coverage to mitigate risks and encourage investment.
- A pilot agricultural insurance program is being developed to provide guarantees against climate-related risks.
- The government aims to articulate different insurance schemes and build a shared understanding of risks to increase insurance coverage.
