The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and American Life, a Brazilian insurance company, recently launched an effort to rollout a new life insurance product that will be offered to low-income families in Brazil. Specifically, the microinsurance product will be targeted towards families that make less than USD 800 a month. IFC estimates that approximately 128 million people in Brazil fall into this category. IFC’s role in the partnership will be to offer advisory services to American Life in the areas of business planning and product development. IFC and American Life expect to offer the final product in 2012.
Loy Pires, IFC’s country manager for Brazil comments, “This project is aligned with IFC’s strategy in Brazil, and its Global Financial Markets strategy, which among other objectives, focuses on increasing access to finance for low-income segments. We acknowledge the importance of insurance products for low-income families in managing risks, and through the partnership with American Life, we expect to provide relevant contribution to the Brazilian microinsurance space and to develop innovative ways to reach the base of the pyramid.”
Financial data on American Life is not available.
By Julie Moksim, Research Associate
About the International Finance Corporation (IFC): The International Finance Corporation (IFC) is a member of the World Bank Group that was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses and services. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reported net income of USD 1.75 billion, total assets of USD 61 billion and return on assets of 3.1 percent.
About American Life: American Life is a Brazilian insurance company, based in Sao Paulo, that offers life insurance to segments of the population that are not often covered by large insurance companies. Financial data on American Life is not available.
Sources and Additional Resources:
International Finance Corporation (IFC) Press Release: “IFC, American Life to Provide Life Insurance to Low-income Families in Brazil”, March 28, 2011, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDoc…
MicroCapital.org Brief, January 13, 2011: International Finance Corporation (IFC) Invests $20m in Banco Triangulo SA (Tribanco) to Support Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs) in Brazil, http://www.microcapital.org/microcapital-brief-international-finance-cor…
MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC)
Microfinance Universe Profile: American Life
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