Many thanks for sharing this article, Chuck.
There really needs to be more realistic discussion about the unfortunate direction microfinance has taken. The social consequences of commercialization have been disastrous, but as long as outreach keeps ticking up, who cares, right? Measuring social impact is "difficult" anyway, better to focus on the bottom line.
For estimates of the size of microinsurance markets, you can check out the World Map of Microinsurance at the Microinsurance Centre's website - http://www.microinsurancenetwork.org/world-map-microinsurance. The map references findings from several regional landscape reports conducted in recent years.
Unfortunately, I think we see a lot of the same negative, commercialing trends in microinsurance. Low value products being tacked onto loans, savings, and even mobile airtime, with low customer comprehension, and even worse, low comprehension by insurers about the needs of the low income market.
I'm not convinced that offering insurance and savings is a viable "way out" for MFIs who want to "do right" by their clients. As the article mentions, without public policies creating the necessary conditions, financial services will do nothing to alleviate poverty.
Cheers!
Derek
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Posted by: Derek Poulton <dpoulton@gmail.com>
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