Making Insurance Work for Microfinance Institutions : A technical Guide to Developing and Delivering Microinsurance [...]This how-to manual guides managers of microfinance institutions (MFIs) through the complexities of offering basic insurance products, either on their own or in partnership with an insurance company. Insurance is one solution to help low-income households and microfinance institutions to manage risks, but it is not the only solution and it is not always the best solution. Written for senior managers and directors of MFIs that offer insurance or are planning to do so, this manual helps readers to determine whether it is appropriate to offer insurance, which type of insurance product(s) to offer, and through what institutional structure.[...] [...]A risk is the chance or likelihood that an event will cause damage or loss. Low-income entrepreneurs are particularly vulnerable to risks, such as illness, injury, theft and death. Of these, death is among the most serious risks faced by low-income households, especially the death of a breadwinner. Not only does the household face a rise in short-term expenses for funeral or burial costs, which can be quite large in some societies, but it also faces the long-term problem of losing that person´s labour contribution to the household enterprise. While the household may employ various coping strategies, such as participation in burial societies and relying on the generosity of friends and family, informal coping mechanisms are sometimes unreliable or inadequate. Microfinance institutions (MFIs) lend money to low-income entrepreneurs, so MFIs are vulnerable to the same risks as their clients. When a risk event strikes borrowers or their family members, it often affects their ability to repay their loans. ID: 33447 Author(s): Churchill, Craig F.; Liber, Dominic; McCord, Michael J.; Roth, James Publication date: 01/01/03

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Created: 30/03/04. Last changed: 09/03/11.
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