Showing posts with label micro finance. Show all posts
Showing posts with label micro finance. Show all posts

Wednesday, October 19, 2011

Micro Insurance and Micro Credit Part.I


After demonstrating his interest in developing countries, micro-insurance - like micro-credit - investing developed countries. As proof, two offers micro insurance bound for micro entrepreneurs were launched in Europe in the last 10 months. Decryption ...

The importance of micro and vulnerability

Little media coverage, the world of micro, Nonetheless exciting. A study of DCASPL, 1 January 2004 there were in Europe 2,390,000 microenterprises, more than 95% of European  companies. All of these micro-employed 5,798,700 people, that is to say 1/4 of wage employment, and generated the same year more than 8% of  exports. In other words, micro enterprises are businesses that have real economic significance, and more, social.

Interesting phenomenon, according to INSEE figures for 2004, more than 220,000 micro-enterprises were created. And nearly a third of the creators were unemployed (half for more than a year). That is to say that much of the newly created small organizations, which are inherently fragile, are supported by people who are particularly vulnerable.

To address this vulnerability, micro entrepreneurs may find support from actors to promote economic initiatives such as PACE, ADIE  or active Europe. In addition to expert advice, these players offer solutions to meet the needs of the two main creators finance their project and manage risk.

Broadly, there are three main types of risks faced by micro entrepreneurs:

* The damage that the company could suffer in case of disaster;
* The damage that could cause the company to third parties;
* Risks that relate to people (health, disability ...).

Saturday, June 18, 2011

Micro Insurance, Natural Complement of Microcredit Part.III



The combination takes advantage of this special role to provide support (including legal) in the Proceedings of the insured. Conversely, insurance products are best developed on the basis of specifications drawn up according to the needs and financial capacities of micro entrepreneurs by insurers who have the expertise and capital required.

It is clear that the design of the two products presented above are based on models of traditional products of insurance (liability, property and casualty business,) well understood by insurers and distribution models have proven otherwise.
The innovation of this type of product then essentially comes from the mix design "optimized" (an insurance policy and a simplified marketing price equal to the cost of production) and distribution of "proximity" (accompanied by networks of initiative Economic and associations).

The need for micro-entrepreneurs in terms of insurance is not new and one wonders why such offers micro insurance was not developed earlier. According to Mr. Schinzler, Chairman of the Supervisory Board of Munich Re, "the premium income is low administrative costs are relatively high and the infrastructure is lacking, as many arguments justifying the lack of interest of professional insurance for this market".
Micro insurance, such as microfinance as a whole, should not be seen as the broad market of tomorrow huge future profits (insurers partners do not mark-up on products and distribution fees are zero). Today, it should rather be seen as an activity to meet the challenges of sustainable development in Financial Services, a theme which is too often accused professionals of this sector of disinterest. The many recent initiatives in this area show the contrary a real desire...

Micro Insurance, Natural Complement of Microcredit Part.II



This is compounded by a range of options such as auto insurance products or comprehensive household. Lasting up to 4 years, time required for proper insertion into the economic fabric, it is available for less than € 1 per day.
The second offer was launched by AXA and Macif in partnership with ADIE in May 2007. Partly similar to the basic coverage, duration and price, it differs from the previous offer additional guarantees for specific depending on the type of activity. Note, for example, guarantees given for construction activities (from € 1,000 / year) that are legally binding assurances.

It is interesting to note that these offers are based on micro-insurance business model "producer-distributor-guide". To understand this model, back into the mechanisms of insurance. In an offer of insurance, there are three groups of activities involved: product design, sales and service. The design is linked to both the development and pricing to risk management of the insurance portfolio and investment of reserves and annual premiums. The sale includes all activities related to marketing, promotion and sale of the product. The service includes the collection, continuous premiums of policyholders and settlement of their compensation.

In Model "producer-distributor-guide", the producer performs all activities of product development and sometimes after-sales service, while the distributor is responsible for the act of selling the product that was recommended previously by the attendant.
Networks to aid the economic initiative are well equipped to play the role of accompanist, using the leverage of their existing networks and building on already established relationships of trust with the micro entrepreneurs during assembly files microcredit. The staffs of these networks still need to be trained in insurance products to be able to perform its consulting business.
The coach may also carry out the deed, but most often it is the producer or a third actor playing the role of distributor. In the provision of Contractors of the City, aid networks are not selling, they are responsible to the requirements and redirect to the creators of the City Entrepreneurs who takes care of distribution (no commissions) micro insurance products through its association and support the service remaining the sole representative of the member.

Micro Insurance, Natural Complement of Microcredit Part.I



After demonstrating his interest in developing countries, micro-insurance - like micro-credit - investing developed countries. As proof, two offerings aimed at micro insurance. Little publicized the world of micro nevertheless exciting. According to a study of DCASPL, 1 January 2004 there were 2.39 million in France microenterprises alone that too, more than 95% of European companies. All of these micro-employed 5,798,700 people, that is to say one quarter of salaried jobs, and generated the same year more than 8% of exports. In other words, micro enterprises are companies that have real economic importance, and much more, social.

Interesting phenomenon, according to INSEE figures for 2004, more than 220,000 microenterprises have been established. And nearly a third of the creators were unemployed (half for more than a year). That is to say that a large proportion of these newly created small organizations, which are inherently fragile, are supported by people particularly vulnerable.

To address this vulnerability, micro entrepreneurs can find support from actors to promote economic initiatives such as PACE, ADIE. In addition to expert advice, these players offer solutions to meet the needs of two main creators: to finance their project and manage risks.

Broadly, there are three main types of risks faced by micro entrepreneurs:

* The damage that the company may suffer in case of disaster;
* The damage could cause the company to third parties;
* Risks that relate to people (health, disability ...).

While microcredit is now well accepted in France among the types of funding, micro insurance is currently not among the first their risk management solution. Yet it is a natural extension of microcredit, to secure and sustain the long term activity initiated by the micro-entrepreneur.
The first offering micro insurance was launched in France by Contractors of the City in December 2006. This "First Insurance Package" provides a standardized insurance policy covering the three major types of risks faced by micro entrepreneurs and comprehensive coverage including professional liability, Welfare and Health.

Tuesday, May 10, 2011

Micro credit


Micro credit is the lending to the poor to enable them to develop an economic activity, make them aware of their ability to generate income, put in a position of success and open to sustainable economic, social and human development. They can create their own employment and small business.


The concept of micro credit is not about charity. Quite contrarily this is to provide a realistic financial structuring for projects that real professionals are emerging and are sustainable over time. A candidate for a micro credit loan holder must be truly an operational and realistic. The challenge is to find a place economic, financial and social integration that will eventually allow the candidate to have full access to formal credit and banking practices and mainstream financial professional. It is a true path of integration through enterprise creation.


Micro credit dated early 70. Its establishment became famous as a result of the disaster in Bangladesh in 1971. There have organized initiatives for this population ravaged by famine and war could once again live, work and eat. This concept was coined by Professor Muhammad Yunus. Since then, micro finance has made fans throughout Asia, Africa and South America. Originally, the loans were about $ 1. Today it is estimated that the average loan in developing countries is about 100 dollars for 10 million people around the world accompanied by 2000-3000 micro credit organizations. This loan is a "social investment and intelligent, which gives access to sources of financing to micro entrepreneurs traditionally with out bank facility." Micro entrepreneurs are located in Cameroon, Cambodia, and India.