Zambian health, life and pension products provider Professional Life Assurance has launched a microinsurance program called Bantu Bonse for low-income clients in Zambia. Under the policy, clients can purchase policies starting at ZMK 30,000 (USD 5) per year that provide between ZMK 1 million (USD 195) and ZMK 5 million (USD 975) of coverage for illness and death. The coverage period will last one year, beginning the date of the initial policy purchase.
The managing director of Professional Life Assurance, Rajagopal Krishnaswamy, reportedly cited the need for microinsurance to cushion risks such as illness and death in developing countries such as Zambia that are characterized by economic insecurity. Professional Life Assurance has invested ZMK 640 million (USD 125,000) in the program. The headquarters of Professional Life Assurance is located in Lusaka, Zambia, and it’s two branches can be found in the cities Ndola and Zitwe.
The eight Zambian microfinance institutions that provide data to the US-based nonprofit Microfinance Information Exchange (MIX) reported a gross loan portfolio of USD 4.5 million disbursed to approximately 29,000 borrowers in 2010.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
Zambia Daily Mail: “Professional Life Assurance Launches Bantu Bonse,” http://www.daily-mail.co.zm/index.php/business/3284-professional-life-assurance-launches-bantu-bonse
Times of Zambia: “Bantu Bonse Life Policy Gets K640m Boost,” http://www.times.co.zm/index.php?option=com_content&view=article&id=4593:bantubonse-life-policy-gets-k640m-boost&catid=37:business&Itemid=88
MicroCapital.org story, January 24, 2012, “MICROCAPITAL BRIEF: Citing High Repayment Rates, FINCA Zambia to Reduce Rates, Charge Interest Based on Declining Balance,” https://www.microcapital.org/microcapital-brief-citing-high-repayment-rates-finca-zambia-to-reduce-rates-charge-interest-based-on-declining-balance/
MicroCapital.org story, June 2, 2011, “MICROCAPITAL BRIEF: MFTransparency, Association of MicroFinance Institutions of Zambia (AMIZ) Launch Transparent Pricing Initiative in Zambia,” https://www.microcapital.org/microcapital-brief-mftransparency-association-of-microfinance-institutions-of-zambia-amiz-launch-transparent-pricing-initiative-in-zambia/
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