The Microinsurance Initiative


	Bringing together international expertise and modern technology, the Microinsurance Initiative will strive to develop a replicable model for microinsurance that will be viable and financially sustainable in multiple socio-economic and cultural contexts

Microcredit is widely known for its power to assist people break out of poverty. However, it is not uncommon for families just beginning to work themselves out of poverty to remain highly vulnerable to catastrophic events such as the death of a family breadwinner or an emergency need for expensive major surgery and a long hospital stay. As a result of such a catastrophe, families that had just begun to see the prospect of a better life can often – for reasons beyond their control – be driven back into extreme, debilitating poverty, possibly for decades.

The Microinsurance Initiative, funded by a grant of $5.5 million from the Bill & Melinda Gates Foundation to Aga Khan Foundation USA is being implemented by AKAM with the hope of safeguarding the poor against loss of savings and income as a result of catastrophic events such as death of a household breadwinner, long-term hospitalization, and business or crop loss. Bringing together international expertise and modern technology, the five-year initiative will strive to develop a replicable model for microinsurance that will be viable and financially sustainable in multiple socio-economic and cultural contexts.

Beginning in Pakistan, where AKDN has a strong institutional presence and long history of innovation and success, FMFB-P will work as a platform for launching the insurance products. In ensuring success and innovation, AKAM will leverage the technical expertise of the Jubilee Insurance Companies, also part of the AKDN, in developing the most appropriate, accessible, and viable microinsurance products. In year two, a similar exercise in Tanzania will adapt the model to the African context.