MICROCAPITAL BRIEF: Women’s World Banking (WWB) Partners with Australia’s AusAID on Microinsurance, 90k Jordanians Reached by Microfund for Women

The Australian Agency for International Development (AusAID), an agency of the federal government of Australia, reportedly has pledged its support to Women’s World Banking (WWB), a US-based nonprofit microfinance network, to assist with the expansion of international microinsurance services. The nature of this support has not been disclosed. Speaking about the partnership, WWB CEO Mary Ellen Iskenderian was quoted as saying, “[…] it became clear that AusAID was just as concerned about social inclusion as we were.” Ms. Iskenderian also conveyed WWB’s interest in working with Australian insurance businesses and brokers, “We are increasingly working with a broader array of financial operations as they recognise that microfinance is a real market that can be serviced both responsibly and profitably in less economically developed segments. […] We are definitely open to working with Australian companies. Microinsurance is an area that more insurance companies in developed countries will find interesting. We would like to speak to brokers who have specialist skills and experience in microfinance, and can help us identify the best policies for affordable premiums.” During the 2011-2012 fiscal year, the Australian government pledged AUD 4.8 billion (USD 4.9 billion) to development assistance.

As reported by MicroCapital at the time, The Caregiver Policy (Ri’aya in Arabic), a health insurance product, was launched by WWB partner Microfund for Women (MFW), a nonprofit microfinance institution in Jordan, in April 2012 following a two-year pilot stage. After originally aiming to reach 3,000 families, the insurance scheme has grown to provide coverage to 91,000 people, mostly women, as of December 2012. Caregiver is underwritten by Zurich Insurance Group Limited, a Switzerland-based global insurance company, that was formerly known as Zurich Financial Services Group. According to US-based nonprofit Microfinance Information Exchange (MIX), MFW has total assets of USD 26.5 million, return on assets of 8.15 percent and return on equity of 15.4 percent as of December 2011. MFW has 81,000 active borrowers and a gross loan portfolio of USD 36.2 million as of December 2012.

By Lena Phillips, Research Associate

About Women’s World Banking (WWB)

Women’s World Banking (WWB) is a nonprofit microfinance network organization that was founded in 1976 and is based in the US state of New York. WWB provides technical and advisory services to its network of microfinance institutions (MFIs) in an effort to alleviate global poverty by expanding the economic assets, participation and power of poor people, especially women. As of November 2011, WWB had 39 member institutions working in 27 countries and serving about 26 million microentrepreneurs.

About Australian Agency for International Development (AusAID)

AusAID is a federal government agency in Australia with a mandate of providing overseas aid. AusAID focuses primarily on the Asia-Pacific region but also provides aid to developing countries in Africa, Latin America and the Caribbean. During the 2011-2012 fiscal year, the Australian government pledged AUD 4.8 billion (USD 4.9 billion) to development assistance.

About Microfund for Women (MFW)

Microfund for Women is a nonprofit Jordanian microfinance institution that serves poor entrepreneurs. MFW also offers microinsurance products such as the Caregiver Policy (Ri’aya in Arabic) in partnership with Women’s World Banking (WWB), a US-based nonprofit microfinance network. Caregiver is a private health insurance scheme intended mainly for women that serves 91,000 people as of December 2012. According to US-based nonprofit Microfinance Information Exchange (MIX), MFW has total assets of USD 26.5 million, return on assets of 8.15 percent and return on equity of 15.4 percent as of December 2011. MFW has 81,000 active borrowers, 97 percent of which are women, and a gross loan portfolio of USD 36.2 million as of December 2012.

Sources and Additional Resources:

InsuranceBusinessOnline.com Article, by Chinwe Akomah,“Microinsurance organization calls for broker involvement,” http://www.insurancebusinessonline.com.au/news/microinsurance-organisation-calls-for-broker-involvement-148955.aspx

“Microfund for Women’s Caregiver Experience: Lessons from Jordan on Health Microinsurance,” Women’s World Banking: 2012, http://www.swwb.org/sites/default/files/pubs/en/mfwcaregiver-lessons-jordan-health-microinsurance.pdf

MicroCapital.org Article, 19 February 2013: “MICROCAPITAL BRIEF: Microinsurance Network Expects Industry to Double, Reaching 1b Customers by 2020,” https://www.microcapital.org/microcapital-brief-microinsurance-network-expects-industry-to-double-reaching-1b-customers-by-2020/

MicroCapital.org Article, 24 October 2012: “MICROCAPITAL BRIEF: Development and Employment Fund (DEF) of Jordan Offers $5m in Grants to Microfund for Women (MFW), Ahli Microfinance Company (AMC),” https://www.microcapital.org/microcapital-brief-development-and-employment-fund-def-of-jordan-offers-5m-in-grants-to-microfund-for-women-mfw-ahli-microfinance-company-amc/

MicroCapital.org Article, 4 June 2012: “MICROCAPITAL BRIEF: Microfund for Women Offers Health Insurance Coverage to Microfinance Borrowers’ Families in Jordan,” https://www.microcapital.org/microcapital-brief-microfund-for-women-offers-health-insurance-coverage-to-microfinance-borrowers-families-in-jordan/

MicroCapital.org Article, 6 November 2011: “MICROCAPITAL BRIEF: Women’s World Banking, Microfinance Institution Asociacion Dominicana para el Desarollo de la Mujer (Banco ADOPEM) Use Television Soap Opera to Teach Savings,” https://www.microcapital.org/microcapital-brief-women%E2%80%99s-world-banking-microfinance-institution-asociacion-dominicana-para-el-desarrollo-de-la-mujer-banco-adopem-use-television-soap-opera-to-teach-savings/

MicroCapital Universe Profile: Women’s World Banking (WWB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Women%27s+World+Banking+%28WWB%29

MicroCapital Universe Profile: Australian Agency for International Development (AusAID), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Australian+Agency+for+International+Development+%28AusAID%29

MicroCapital Universe Profile: Microfund for Women (MFW), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfund+for+Women

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