Why is it so important to work with a local, grassroots NGO or microfinance institution?
How much do micro-insurance clients have to pay? Currently, the only product we are offering is a micro-life insurance policy, which costs 87 cents per year. The coverage in an event of natural or accidental death is 370 Euros. Is this a profitable business for you? We currently insure 42,000 members under the ASA contract and we are working to increase this number. We have also considered establishing micro-insurance contracts with more NGOs and microfinance institutions, not only in India, but also in Indonesia. This is not the kind of scale that makes a company rich, but through efficient processing and group policies, micro-insurance can be made financially sustainable. In the medium term, it opens the door for us to a huge potential market. What are the largest challenges that you are facing? Raising awareness is the most important thing for us. People in poor regions are not familiar with the concept of insurance. We are working around this problem by cooperating with local NGOs
