Microinsurance: Helping the Poor with Risk Management

Recently, Bill Clinton announced the initiation of LeapFrog. It will be the world’s first and microinsurance firm. It will cater to the need of low-income individuals. The firm will invests $100 million over the next 10 years and allow millions of poor people in Africa and Asia to have access to insurance services that they can afford.

Clinton estimates that there are about a billion people that are in need of this type of insurance with about 3% of those having no insurance at all. Dr. Andrew Kuper, the founder and president of LeapFrog, stated that by catering to low-income nations there is a very large opportunity to create a lucrative and sustainable business while helping poor people escape poverty.

This microinsurance will protect the poor by assisting them in managing diverse risks that may be incurred in their lives, homes, property, health, crops, and businesses. Without insurance, they find it difficult to recover from shocks, take business risks to increase their income, build assets and thus escape poverty permanently.

http://www.insurancejournal.com/news/national/2008/09/28/94121.htm