Microinsurance and Microfinance Institutions - Evidence from India (CGAP Working Group on Microinsurance Good and Bad Practices Case Study No. 15)

Publication Date: Sep 2005
Published by: CGAP Working Group on Microinsurance
Document Type: Case Study (PDF)

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Reviewing the experiences of three Indian MFIs in the microinsurance sector

This document is a case study elucidating the role of microfinance institutions (MFIs) in developing market for microinsurance in India. The document discusses the important lessons learned from leading MFIs in India to develop the microinsurance market.

The document deals with the following:

• The bouquet of financial services offered by MFIs in general;
• Reasons for MFIs to enter into microinsurance;
• Possible delivery mechanisms to reach the clients;
• Design of the products, keeping in mind the needs of the clients;
• Microinsurance in the Indian context;
• Rules and regulations governing microinsurance in India;
• Role of the state government.

The document also discusses the MFIs that have been chosen for this study, with respect to the following factors:

• The history;
• The general profile of the clientele;
• The risk management products and policies adopted;
• Microinsurance products offered;
• Various partnership models and partners used;
• Lessons learned, in terms of pricing an insurance product and developing it according to the needs of the customers.