India’s Microfinance Industry Close to Being 100% Insured Sector
Thursday, October 17, 2013
Barely two years ago, a crisis-ridden microfinance sector was struggling to integrate into the formal finance sector. In 2013, the sector is close to being 100 per cent insured, as it has emerged as one of the largest platforms for marketing of insurance products.
The sum insured in the microfinance sector now stands at more than its gross loan portfolio. As on June 30, sum insured through microfinance institutions (MFIs) stood at Rs 35,300 crore and the gross loan portfolio of the MFIs at Rs 21,300 crore. Of the 24.8 million-odd clients of MFIs, 23.2 million lives are insured, according to Micro Finance Institutions Network (MFIN) data. (The data does not include that of SKS, the second largest MFI in the country).