Why you should CARE about microinsurance

We have written about microinsurance before, including SKS’s Vikram Akula’s decision to develop a product for his customers. Now, Bajaj-Allianz and CARE India will be developing a product of their own. In an interesting partnership between the charity and a commercial company, this venture will aim to help individuals substantially improve livelihoods through the safety net insurance can provide. On Allianz’s site there is a great interview with RN Mohanty, Chief Operating Officer, CARE India, speaking to this new partnership. Here is an excerpt:

The biggest challenge was definitely educating people that risk protection is an important part of their lives. We do this because we want to inculcate a culture of savings with the community, not just insuring for the time being. The general mindset in rural India is that unless you get something out of it immediately it is not worth investing. If you look at our client list, close to 90 percent are first-time insurers.

The rest of the interview can be read here.

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Evolution of microfinance through lens of human resources

One of the most recognizable names in Indian microfinance has decided to step down from his role as CEO. Vikram Akula, the visionary founder and leader of SKS Microfinance will step down.

Mr. Akula says that this change will allow him to focus on a new initiative – microinsurance.  As MicroCapital reported earlier this year, SKS partnered with Bajaj Allianz Life Insurance Company to offer insurance products toclients.  This announcement comes amid rapid growth in the company. Suresh Gurumani, Director, Barclays Bank, will take over as SKS Microfinance’s CEO.  An official transition date was not given.  

This event marks a point of evolution for the microfinance industry at large as entrepreneurs are now looking to the next big financial product to develop for their contstituencies. As microfinance becomes increasingly commoditized and regulated, risk-takers like Akula are now pushing the envelope further to find other services that are in need. TC-I wishes Akuka the best in his new endeavor(s).

[Source: Microcapital.org]

TC-I Tidbits

Here is your daily dose of headlines about innovative or anti-innovative ideas from around the country:

  • Microfinance
    • ACCESS Development Services and Agency for Technical Cooperation and Development will work to build cooperation between Europe and India to assist 20 MFIs in the country.
    • SKS Microfinance and Bajaj Allianz will form a partnership to provide clients with insurance products.
    • Standard Chartered expects to ramp up its investment in Indian MFIs.
  • Global Trends
    • The lure of high salaries and chance of returning home has encouraged many non-returning Indians to become returning ones.
  • Central Government
    • Power Generation and Transmission
      • In order to address load demands between the two countries, India and Sri Lanka will build a power line between them to help each deal with supply shortages.
      • The centre’s support for private initiatives to produce and provide hydro-electric power has come under scrutiny for whether only the wealthy have enjoyed access to the energy.
      • The government also presented its report on the safety of its proposed civilian nuclear program at the Convention on Nuclear Safety.
    • Climate Change
      • Pushing forward on the way the country will tackle global warming, the federal government looked to split up the effort into three parts.
  • State and Local Governments
    • Andhra Pradesh
    • Maharashtra
      • Education: Proposed rules will prohibit private school teachers from providing tuitions outside of the classroom, in order to eliminate the chance that these teachers favor these tutees over their own students.
    • Pune
      • Health: A NGO here utilizes pets to bring about emotional stimulation in autistic children.
    • Visakhapatnam
      • Housing: The ‘Rajiv Swagruha’ scheme has finally become a reality — promising the ability to own housing for over 10,000 applicants has begun, with the first acquisition of land by the city.