Risks Across Borders: A Study of the Potential of Microinsurance Products to Help Migrants Cope with Cross-Border Risks
This report explores risks associated with cross-border migration using data on Mexican migrants to the United States living in New York City. It examines supply models and potential demand for risk mitigation products and recommends policy measures.
The paper discusses the home, host and hybrid models for migrant linked insurance with examples. It identifies barriers in terms of products, regulations, delivery channels and payment systems faced by migrants in the US in accessing insurance. The paper highlights demand considerations for designing insurance products for Mexican migrants in the US.
The paper recommends several interventions for removing barriers to insurance access for migrants. These include:
- Developing products to meet specific economic and demographic needs of migrants;
- Continuing public efforts to offer transnational and health insurance support;
- Providing financial education and counseling;
- Basing product design on market studies;
- Piloting host based model for Mexican migrants in the US;
- Creating a working group of stakeholders to examine policies and regulations;
- Creating low cost delivery channels and involving community groups;
- Engaging financial institutions in microinsurance delivery;
- Using technology to support marketing and payment.