Insurance is defined as "long term contractual savings". Although target groups are keen to save, they lack the ability to save for long periods. They are forced to spend this money for emergencies such as illness, food scarcity and the sudden arrival of a guest. In many cases husbands and family members take their savings by force. Money that has been saved in the house is often stolen or destroyed by termites. Long term contractual savings compels people to save. Premiums are paid because if they are not, then the paid up amounts have to be forfeited.
Once an organization are aware of it’s compliance obligations, it will be necessary to ‘unravel’ them to find the specific requirements that affect it. An organization can only make a pronouncement about its own compliance if these requirements are made explicit. This is a time-consuming (albeit one-time) operation, especially for organizations subject to many laws and regulations. Ultimately, however, it has great added value. It must be clear how these Compliance obligations impact the organization, for example:
The criteria for continuing education shall be approved by the board and must include a current certification in both cardiopulmonary resuscitation and the use of an automated external defibrillator as set forth in the continuing education requirements as determined by the board.
Define W4 to be the cutoff wealth level determining whether an auditor complies with the standard q*. To identify Wg, note that any auditor with wealth WT Wg.
Brown, D. L., S. Z. Shu, B. S. Soo and G. M. Trompeter. 2013. The insurance hypothesis: An examination of KPMG's audit clients around the investigation and settlement of the Tax Shelter Case. 32(4): 1-24.
Mr. Mike Rewald, the acting Country Director of CARE Bangladesh welcomed the resource persons and all the participants to the Forum. In his introduction, he highlighted the relevance of hosting the Micro-insurance Forum in Bangladesh given the country's strategic importance in the microfinance sector as the home of numerous pioneering microfinance institutions. Rewald emphasized that the primary objective of the Micro-insurance Forum was to share existing experience on the topic, advance interest in the relevant issues and increase knowledge on the subject. He observed that there was wide interest in the topic that was reflected in the diversity amongst the forum participants who included representatives of UN agencies, NGOs and microfinance practitioners. The diversity provided potential for a good exchange of ideas and practices.Rewald remarked that microfinance was an evolving field and institutions like CARE are looking for new ways to improve services to clients. He expressed gratitude to the Microfinance Best Practices Project (MBP) of DAI/USAID for supporting the forum. Special thanks were extended to Warren Brown of Calmeadow for his contribution as a resource person. Thanks were also expressed to Carlos Ani and Harun Rashid of CARE Bangladesh for organizing the workshop.Mr. Carlos Ani, of the CARE Income Forum, and primary coordinator of the Micro-insurance Forum, introduced Mr. Emrul Hasan Faisal, the co-facilitator for the Forum. Hasan facilitated the self-introduction of participants, following which he introduced the agenda for the forum and the specific objectives. He also outlined the process for the discussion sessions following individual presentations.There were other areas of interest that were raised by participants, but these were beyond the scope of this forum. The topics could potentially be raised in subsequent workshops or seminars. The presentation included the findings of a study of 32 microfinance institutions that are currently offering micro-insurance products. The objective of the study was to define micro-insurance and locate the product within the delivery of other microfinance products and services offered by microfinance institutions. The presentation offers a framework for thinking about micro-insurance products in general, and for understanding and evaluating these products within the context of Bangladesh and the world. The Microfinance Best Practices Project and Calmeadow sponsored the study.The initial motivation for the study came from requests from various institutions to USAID for information on micro-insurance, particularly the design of micro-insurance products. Other donors such as Ford Foundation and the UN Foundation were also receiving similar requests for information. These microfinance donors had the desire to reach deeper levels of poverty by providing access to financial services. Therefore, the study was designed to test two hypotheses. Firstly, to test the hypothesis regarding the need for insurance among low-income households. Secondly, to test the hypothesis that insurance can reduce risk and increase effectiveness of credit and savings activities.There is an increased recognition of poor households' need for protection against risk. Insurance reduces the vulnerability of households and increases their ability to take advantage of opportunities. Also, insurance reduces the impact of household losses that could exacerbate their poverty situation.