Pro Mujer Peru, a microfinance institution (MFI) in the Pro Mujer network, has begun offering life insurance to its borrowers through a partnership with Peruvian insurance provider InVita, an affiliate of Dutch financial services provider ING and Peruvian conglomerate Grupo Wiese. Coverage for two family members in the amount of USD 880 for natural death and USD 1,760 for accidental death costs USD 0.37 per month. Pro Mujer claims the product is the least expensive available in Peru. The benefit also covers the balance of the entrepreneur’s loan to Pro Mujer Peru, eliminating this debt for surviving family members and other members of the borrower’s lending group, who would otherwise be expected to help repay the loan. Clients of Pro Mujer Peru form groups to apply for and repay loans.
The offering, launched in March 2008, follows in the footsteps of a similar product offered since July 2007 by Pro Mujer Bolivia, the oldest institution in the Pro Mujer network. Naldi Delgado, director of Pro Mujer Peru reports, “Now that they understand the benefits of life insurance, our clients are eager to take advantage of it.” Established in 1990, the Pro Mujer network includes MFIs in Argentina, Bolivia, Mexico, Nicaragua and Peru. Network-wide Pro Mujer reports having disbursed loans averaging USD 225 to over one million women. These loans total USD 383 million, and client savings total USD 14 million.
Founded in 1999, Pro Mujer Peru offers loans, savings accounts and business training to women entrepreneurs. Healthcare is also offered to clients through alliances with local clinics and hospitals, as are services for families struggling with alcoholism and domestic violence. Pro Mujer Peru operates in the cities of Puno, Juliaca, Tacna, Ilo, Moquegua, Abancay and Andahuaylas, serving more than 43,000 clients – a third of whom live on less than USD 1 a day – and 250,000 family members. As of yearend 2007, Pro Mujer Peru reported to the Microfinance Information eXchange a gross loan portfolio of USD 8.5 million, total assets of USD 9.4 million and a debt-equity ratio of 92 percent.
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