Is There Finally Some Movement on the Pressing Challenge of Microinsurance?
Wednesday, June 24, 2015
We recently had the pleasure of speaking with Nandika Madgavkar, Assistant Vice President of Corporate Responsibility at MetLife, to talk about the MetLife Foundation’s global financial inclusion work.
During that discussion, we also touched on the topic of microinsurance and its importance in the overall structure of any global poverty alleviation framework. “I have to think that it has to be included,” Madgavkar pointed out, “We talk about credit, we talk about savings, and you have to talk about insurance. I think that’s what keeps you from falling back into that terrible cycle of poverty.”
Having insurance goes a long way toward securing financial stability and economic security, not only in the face of medical emergencies, but also when catastrophic weather events like floods, droughts, and typhoons occur. Such events can, and often do, wipe out a families’ entire livelihood within a short matter of time.
The need for insurance for poor populations in least developed countries is definitely present and the benefits of having insurance is obvious. Unfortunately, the cost of traditional insurance is often too high for the people that need it the most. Madgavkar also touched on a salient point here as well, paying for insurance, “…also means that the few dollars you have needs to be stretched a little further. How far can a few dollars go?”