The conference, organized by Shamrock Conferences International, considered solutions for expanding financial inclusion and accelerating growth in Small and Medium Enterprises (SME) and Microfinance sectors.
Rehan gave some background on MFI insurance in Pakistan and the risk mitigation tools employed by MFIs, where MFI’s pooling a fund to be used to pay for those borrowers who die while the loan is outstanding and the group lending model where in case of inability of one borrower, the group will contribute to pay for the one who couldn’t.
He discussed the current state of MFI insurance, how the landscape is changing with some MFIs offering standalone products like health insurance, which is not only helping them cater to the health risks of their clients, but also resulting in better loan repayment, as with health insurance available, borrowers get financial support, which in turn helps them not to default on loan instalments.
He also talked about the future of MFI insurance and the fact that small ticket insurance will ride the digital finance wave and offer nano-insurances to the MFI customers over a mobile phone.
A full summary of the conference can be found here: http://www.shamrockconferences.net/