MICROCAPITAL BRIEF: Opportunity International, MicroEnsure Launch Savings-Linked Education Insurance Program, EduSave, in Malawi

Opportunity International, a US-based development nonprofit, and its subsidiary MicroEnsure, a UK-based nonprofit microinsurance intermediary, have announced the launch in Malawi of a savings-linked education insurance product called EduSave. 

Through EduSave, a saver who maintains a balance of at least USD 15 in his or her account automatically qualifies for a minimum of USD 75 in free insurance coverage to pay for his or her children’s school fees should the saver die or become permanently disabled. Account holders with balances at or above the minimum will benefit from insurance coverage equal to five times the account balance, up to a maximum coverage level of USD 1,400.

As of 2012, Opportunity International Bank of Malawi (OIBM), a commercial bank owned by Opportunity International, reported total assets of USD 56 million and 508,000 depositors with USD 21.2 million in deposits. As of March 2013, it is reported that 170,000 savings accounts had balances qualifying for EduSave, resulting in coverage for approximately 646,000 children.

As of July 2012, Opportunity International had a gross loan portfolio of USD 515 million with operations in 24 countries. MicroEnsure provides microinsurance products to approximately 3.5 million clients in the Caribbean, Africa and Asia as of 2012.

According to MicroEnsure, death of a parent is one of the leading causes of students in developing countries failing to complete their education. The EduSave initiative was also launched in Ghana in November 2012.

By Brian LeBlanc, Research Associate

About Opportunity International Bank of Malawi

A member of the Opportunity International network, Opportunity International Bank of Malawi (OIBM) was granted a full commercial banking license in 2002 and opened its first branch in 2003. OIBM targets economically active Malawians living in underserved areas such as semi-urban and rural areas. As of yearend 2012, OIBM reports total assets of USD 56 million, a gross loan portfolio of USD 30.4 million, 42,200 active borrowers, 508,000 depositors with USD 21.2 million in deposits, return on equity (ROE) of -57.9 percent and return on assets (ROA) of -10.8 percent.

About MicroEnsure

MicroEnsure was founded in 2005 in the UK as a wholly-owned subsidiary of Opportunity International, a US-based nonprofit microfinance network created in 1974. MicroEnsure was known as the Micro Insurance Agency until 2008. As an insurance intermediary, it provides a range of products including health, life, property and weather index-based insurance to approximately 3.5 million poor clients in the Caribbean, Africa and Asia as of 2012. In 2013, the International Finance Corporation (IFC) and Omidyar Network acquired equity stakes in the organization as part of its transition to a for-profit entity.

About Opportunity International

Based in the United States, Opportunity International is a nonprofit organization that was founded in 1971. Opportunity International provides small business loans, savings, insurance and training to approximately 5 million poor people in 24 countries in Africa, Asia, South America and Eastern Europe. As of July 2012, Opportunity International reported a gross loan portfolio of USD 515 million.

Sources and Additional Information:

MicroEnsure press release, http://www.microensure.com/news.asp?id=257

MicroCapital story, March 18, 2013, “MICROCAPITAL BRIEF: Opportunity International Hires Temenos to Customize its Insight Software to Document Social Impact,” https://www.microcapital.org/microcapital-brief-opportunity-international-hires-temenos-to-customize-its-insight-software-to-document-social-impact/

MicroCapital story, January 22, 2013, “MICROCAPITAL BRIEF: MicroEnsure to Tap Data from Meteo Rwanda to Provide Weather Index Insurance for Farmers,” https://www.microcapital.org/microcapital-brief-microensure-to-tap-data-from-meteo-rwanda-to-provide-weather-index-insurance-for-farmers/

MicroCapital story, November 28, 2012, “MICROCAPITAL BRIEF: MicroEnsure Ghana Unveils “Edusave”, Incorporating Insurance, Savings, and Education Finance,” https://www.microcapital.org/microcapital-brief-microensure-ghana-unveils-edusave-incorporating-insurance-savings-education-finance/

MicroCapital story, November 23, 2012, “MICROCAPITAL BRIEF: Opportunity International Adds Savings Services In Colombia By Converting Into Microfinance Bank With Funding From Citi Foundation,” https://www.microcapital.org/microcapital-brief-opportunity-international-adds-savings-services-in-colombia-by-converting-into-microfinance-bank-with-funding-from-citi-foundation/

MicroCapital Universe Profile: Opportunity International https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International

MicroCapital Universe Profile: Opportunity International Bank of Malawi https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International+Bank+of+Malawi

MicroCapital Universe Profile: MicroEnsure https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroEnsure

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

 

Similar Posts: