Allianz, a global financial services company focused on insurance, is re-calibrating its microinsurance schemes to incorporate savings. Allianz launched its global microinsurance program in India in 2005 and today runs microinsurance schemes in India, Indonesia, Egypt, Colombia, Cameroon and Senegal [2]. As it developed these schemes, Allianz realized that savings programs are a key component to microinsurance programs. The global head of Allianz’s microinsurance projects, Michael Anthony, reported that Allianz plans to test a “savings-linked microinsurance scheme” in Indonesia, based on a prior launch in India [1].
Bajaj Allianz and SKS Microfinance, an Indian microfinance institution, launched a savings-linked microinsurance scheme in India in April 2008, which now has approximately 2.5 million customers, of which 99 percent are women [1]. According to Yogesh Gupta, head of microinsurance saving products at Bajaj Allianz, the savings-linked microinsurance program in India works “like a pension scheme”: the holder pays in a set amount every week, and his beneficiaries collect the payout should the holder die. If the holder does not die within a specified time period, he collects his savings plus interest [3].
Based in Germany, Allianz provides insurance, asset management and banking services to approximately 75 million clients in 70 countries. As of year-end 2009, Allianz reported total assets of EUR 584 billion (the equivalent of USD 742 billion).
By Lindsey Shaughnessy, Research Associate
About Allianz SE: Allianz is a global financial services company focused on insurance and based in Germany. Allianz provides insurance, asset management and banking services to approximately 75 million clients in 70 countries. As of year-end 2009, Allianz reported total assets of EUR 584 billion (the equivalent of USD 742 billion).
About SKS Microfinance: SKS Microfinance is an Indian microlender that delivers microfinance products through a group lending model to impoverished women in India. It is a for-profit non-banking finance company which converted to a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. Its total assets as of March 31, 2009, were USD 596 million with 3.5 million active borrowers, and it reported return on assets of 3.68 percent and return on equity of 18.72 percent.
[1] The Economic Times, “Allianz takes Indian made micro-cover to the world”, by Anuradha Sharma, August 10, 2010. http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/Allianz-takes-Indian-made-micro-cover-to-the-world/articleshow/6284739.cms
[2] Allianz, “About Us: Microinsurance”, accessed August 2010. https://www.allianz.com/en/about_allianz/sustainability/microinsurance/index.html
[3] Allianz, “Microinsurance in India: Savings for Life”, July 8, 2010. http://knowledge.allianz.com/en/globalissues/microfinance/microinsurance/savings_life_insurance_india.html
MicroCapital’s Microfinance Universe profile: Allianz
MicroCapital’s Microfinance Universe profile: SKS Microfinance
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