MICROCAPITAL BRIEF: Money Lenders Association of Ghana Signs Memorandum of Understanding to Provide Members with Microinsurance Products

The Money Lenders Association of Ghana (MLAG), an umbrella organization for 350 money-lending organizations in the country, and Star Microinsurance Services Limited, a company that provides microinsurance products to low-income households in Ghana, reportedly have signed a memorandum of understanding to provide MLAG’s clients with microinsurance products, including a funeral policy, micro-healthcare policy and a child education policy [1]. Microinsurance is a system of insurance that protects low-income people from certain threats in exchange for a payment proportionate to the risks involved.

The deal is hoped to lessen some of the financial risks MLAG members face due to poor health, childcare responsibilities or death within the family. Other organizations, such as the Ghana Cooperative Susu Collectors Association (GCSCA), an umbrella organization for informal financial service groups called Susu Collectors, and the Ghana Association of Microfinance Companies (GAMC), recently have collaborated with Star Microinsurance to provide affordable services for their members as well.

Formed in 2008, Star Microinsurance aims to provide affordable microinsurance products to low-income households in Ghana. The organization does not report its financial information. Financial information for MLAG is also unavailable.

By Anesa Kratovac, Research Associate

About Money Lenders Association of Ghana (MLAG)

The Money Lenders Association of Ghana [MLAG] was established in May, 2010 as an umbrella organization for 350 money lending organizations and individuals with the purpose of meeting the common needs of money lenders in Ghana. It develops conditions, capacity building and regulations for its members in order to assure adequate operating standards of their practices. It also builds professional relationships among its members in cooperation with the Bank of Ghana and all stakeholders. MLAG does not report its financial information.

About Star Microinsurance Services Limited

Formed in 2008, Star Microinsurance provides affordable microinsurance products to low-income households in Ghana. As of 2013, Star Microinsurance has approximately 550,000 clients. Star Microinsurance does not report to the US-based nonprofit Microfinance Information Exchange (MIX) and financial information for the company is unavailable.

Additional Sources and Resources:

[1] Ghana Web Website Article, July 19, 2013, “MLAG provides members with micro insurance products,” http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=279935

Money Lenders Association Ghana Website, http://www.moneylendersassociationgh.org/

MicroCapital.org Article, May 28, 2013, “MICROCAPITAL BRIEF: Star Microinsurance Company of Ghana Pays Insurance Claims to Kantamanto Fire Victims through MicroEnsure, Advans Ghana,” https://www.microcapital.org/microcapital-brief-star-microinsurance-company-of-ghana-pays-insurance-claims-to-kantamanto-fire-victims-through-microensure-advans-ghana/

MicroCapital.org Article, July 18, 2013, “MICROCAPITAL BRIEF: Depositors Withdraw Savings from Microfinance Firms in Kumasi, Ghana amid Lack of Safety Nets for Clients,” https://www.microcapital.org/microcapital-brief-depositors-withdraw-savings-from-microfinance-firms-in-kumasi-ghana-amid-lack-of-safety-nets-for-clients/

MicroCapital Universe Profile: Money Lenders Association of Ghana (MLAG), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Money+Lenders+Association+of+Ghana+%28MLAG%29

MicroCapital Universe Profile: Star Microinsurance Services Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Star+Microinsurance+Services+Limited

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