Microinsurance is one part of the range of services and products that the poor need to help overcome poverty and reduce their vulnerability to shocks. However, as with all products, to be sustainable, any microinsurance model also needs to be profitable. Fortunately for the insurance industry and its clients, it’s being demonstrated that increasing profit and promoting financial inclusion do not have to be mutually exclusive. New research from our work in India shows that microinsurance distribution strategies that prioritize building clients’ financial literacy lead to almost three times as many new enrollments as those that do not.
This blog was published with CARE International and originally posted on the Center for Financial Inclusion. To read the full blog, please visit the CFI website.