Produced by Michael J. McCord and Jim Roth of the MicroInsurance Centre for USAID as part of the Microinsurance Note series. Available here.
When Compartamos, a Mexican microfinance institution (MFI), announced it was looking for an insurance partner it had several international firms fighting for its business. This paper presents a model for the structure of such relationships in the provision of microinsurance products. It claims efficiency in transactions and operations are essential to reduce premium costs while expanding coverage, suggesting MFI’s “might be the perfect intermediary for insurers to reach the low income market” as they have already developed financial relationships in this area.
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