A Macro-difference With Micro-insurance
Listening to a recent segment of Marketplace.org (1/15.2010), I heard about microinsurance. The concept sounds like win/win for everyone.
With more resilient structures, Haitians can purchase microinsurance policies that cost $1 to $2 a day. Correspondingly, a Lloyd’s report cited Bolivian health insurance being sold for $5 a month.
For low income individuals, microinsurance represents risk protection for structures, businesses, and health catastrophes.
For insurance companies, it means new markets, new customers, new products, and billions of dollars of new revenue.
It is a pleasure to see new markets and profits for large insurance firms potentially doing good.
Comments? What am I missing?
The Economic Life:
Bangladesh Nobel prize winning (2005) economist Muhammad Yunus has been called a microfinance missionary. Through microfinance, very small loans are making a very big difference. Being able to borrow small sums has enabled poor entrepreneurs in developing nations to start and sustain businesses.