Wednesday, December 16, 2015
The Microinsurance Network, in partnership with Adie have published a new case study – “Strengthening vulnerable micro-enterprises through microinsurance: The Adie experience”. The publication looks into the role microinsurance can play for micro, small and medium enterprises (MSMEs) and microfinance institutions (MFIs), as seen through Adie´s introduction of insurance products into its financial services for MSMEs.
The Network recognises that there is a real need for the value of insurance to be better understood by small business owners through continuous advocacy and education efforts. Because of the major role played by MSMEs in the global economy, the microinsurance sector is gradually starting to realise their importance, and consequently putting them at the forefront of financial inclusion efforts. Microinsurance addresses the needs of MSMEs by transferring risk to a third party, affording businesses the flexibility to re-allocate funds, they would have otherwise needed to reserve for potential future shock events, towards investment in better technologies and product innovation.
G20 leaders also see MSME finance as a main priority, and the World Bank Group has been supporting and implementing projects focusing on strengthening financial services for MSMEs for the future.
Download the full case study here.