Volume : V, Issue : VI, June - 2015

Micro–Insurance: An Innovative Business Strategy

Dr. Ms. G. C. Savagaon

Abstract :

 The poor have greater risks of life, income and the standard of living than that of the rich. Due to absence of savings, these risks can push families to poverty and indebtedness. In India, MFIs are in a unique position to provide microinsurance as they have extensive networks and are already offering financial services to poor clients. MFIs linked with formal insurance companies act as agents for the formal insurers. MFIs can also form joint ventures with formal insurers and share both risk and management. Some MFIs team up with professional insurance providers who have the technical expertise in the area. A faster growth of insurance in the rural sector can also be achieved by insurance companies if they tie up with cooperative societies, regional rural banks, Kisan Credit Cardholders, self–help groups, NGOs, panchayats, and agents to distribute insurance products. This would help the insurance companies achieve insurance penetration in a cost–effective manner.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. (Ms.) G. C. Savagaon Micro-Insurance: An Innovative Business Strategy Indian Journal of Applied Research, Vol.5, Issue : 6 June 2015

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