“Micro-insurers” now have the chance to cash in on grants of up to $US500,000 ($507,756) for projects to help low-income families in developing countries.

The grants are a joint initiative between the International Labour Organisation’s microinsurance facility and the Z Zurich Foundation.

The centre has put aside more than $US2.5 million ($2.53 million) for the grants in a bid to provide affordable insurance with high benefits for low-income families.

It is expected to benefit those who are especially vulnerable to numerous risks such as sickness, loss of livestock and catastrophic climate effects.

The centre is looking for projects using technology and innovation which would help to support sustainable development to reduce these risk factors.

Research shows less than 5% of low-income households in developing countries received any benefit from insurance and remain highly susceptible to risk.

Facility Team Leader Craig Churchill is urging providers to reconsider how projects are structured, marketed, delivered, accessed and documented.

“Microinsurance requires significant efficiencies through simple products, procedures and non-traditional delivery channels and perhaps through front and back office technologies,” he said.

Grants applications will be open until January 25.