Mexican insurance companies are ahead of the curve on microinsurance. They've built new delivery mechanisms to provide the working poor with life insurance. From BusinessWeek:
"The issue isn't that the population doesn't have the economic capacity, disposable income, or an insurance culture, rather we as insurance companies need to adapt to their means," said Alfredo Honsberg, chief executive of insurance company Seguros Azteca, in an interview.
Honsberg hits the nail on the head. No wonder he reports selling 50,000 policies a week.
I think this could be the year that we wake up to the possibilities of microinsurance. Not only life insurance, but also health, crop, livestock and other insurance policies are a classic win-win for the poor and the companies who serve them. Microinsurance is every bit as powerful as microcredit. Even better, insurance products can prevent people from falling into poverty in the first place.
See our microinsurance reading list for more.
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