MILK Brief #20: ‘Doing the Math’: Loan Protection Insurance in Cambodia

Description: 

Can credit life microinsurance provide value to clients?  In its 20th Client Math study, MicroInsurance Centre’s Microinsurance Learning and Knowledge (MILK) partnered with the Cambodian microinsurance provider MEADA to explore the value of a life microinsurance product that combines loan protection with a small cash payout in the even of a microcredit borrower's death. The authors interviewed family members of recently-deceased individual, some of whom were covered by insurance and some of whom were not, to better understand the costs they faced and how they covered those costs (including the role the insurance played). In 2007, the Cambodian Health Committee, the foundation organization of the microfinance institution SAMIC (Samaki Microheranvatho, or Microfinance of Solidarity) created Measure for Economic and Accelerated Development for All (MEADA). MEADA is a microinsurance provider offering life and credit life microinsurance products in twenty districts of Cambodia . “MEADA” means “Mother” in Khmer, capturing the program’s objective of nurturing and protecting low-income Cambodian families in the event of unexpected losses resulting from the death of a borrower.

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Author: 

Laura Budzyna, Taara Chandani

Publisher: 

MILK

Number of pages: 

12

Rating: 

Average: 4.5 (2 votes)