Insurance Journal reports that Zurich Financial Services Group, an insurance focused financial services provider, has reached an agreement with Women’s World Banking (WWB), a New York based network of microfinance providers and banks, to establish strategic collaboration in the area of microinsurance. Under the arrangement, a global program will be created to pilot and roll out “caregiver” products, insurance-based solutions providing predefined benefits to clients of WWB affiliate institutions during hospitalization events. The target demographic is primarily female caregivers in low-income households. MicroInsurance Center LLC, a consultancy and research group focused on developing sustainable insurance programs, will aid in designing the endeavor. No further information regarding the specifics of the agreement is released.
WWB President and CEO Ms. Mary Ellen Iskenderian noted that the program with Zurich holds great promise in addressing poverty, especially for females. “Women, more often than not, are the family’s primary caregiver in impoverished areas,” said Ms. Iskenderian. “During a health event, there are more than just medical expenses – lost wages, child care, and transportation to and from the hospital – all add pressure on a household during a tough time. The caregiver program is designed to address just these issues.” The program may also have a multiplier effect in terms of entrepreneurship in low-income populations. That is, saving for adverse events, rather than investing in businesses, often puts the poor at a further disadvantage in their economic mobility efforts. Therefore, insurance programs which lower the need for savings by pooling risk could potentially unlock entrepreneurial outlays by low-income women.
Likewise, the insurance giant believes that, “collaboration with WWB marks another major milestone on Zurich’s route to address the significant unmet need for insurance among disadvantaged populations, especially in emerging markets,” according to Brandon Mathews, Head of Microinsurance. He added, “WWB’s 30 year history of microfinance innovation and its deep customer knowledge perfectly combine with Zurich’s risk management expertise.”
In February, 2007, MicroCapital reported on Zurich’s partnership with the Swiss Agency for Development and Cooperation (SDC) to undertake joint implementation of a cross-regional microinsurance initiative. The venture’s primary aim is to expand insurance coverage to disadvantaged sectors of the population in countries across Africa, Asia, and Latin America. Additionally, according to another report from MicroCapital in May, 2008, a microinsurance research project was launched by Zurich in China. The initiative focused on assessing the local demand for microinsurance products, and was part of Zurich’s efforts to further expand its insurance offerings to the nation’s underprivileged segments.
Founded in 1872, Zurich Financial Services Group is a Swiss insurance focused financial services provider with a global network serving customers in more than 170 countries worldwide. In 2007, the company reported a return on equity of 21 percent, and as of March 31, 2008, maintained an Insurer Financial Strength Rating of A+, or Superior, from Fitch Ratings.
WWB is a global network of 54 microfinance providers and banks. It operates in 30 countries and serves 11 million micro entrepreneurs directly, in addition to another 10 million indirectly through its bank partners.
By Yanni Hao, Research Assistant
Additional Resources:
Insurance Journal: “Home” “Zurich to Launch Microinsurance with Women’s World Banking”
MicroCapital Story, February 7, 2007, “Zurich Financial Services Group partners with Swiss Agency for Development and Cooperation to focus on Micro-insurance”
MicroInsurance Center LLC: “Home”
Swiss Agency for Development and Cooperation (SDC): “Home”
Women’s World Banking: “Home”
Zurich Financial Services Group: “Home“
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