Major insurer to offer microinsurance

Major insurer to offer microinsurance | Insurance Business

Major insurer to offer microinsurance
IAG has announced the launch of a microinsurance program with its partners in Vietnam to help those with a low income in the developing country.

Microinsurance is defined by the company as an insurance policy with “an annual cost of no more than USD$10” and is aimed at protecting those who need it most.

“In Vietnam, IAG’s AAA Assurance recently launched a suite of four microinsurance products covering personal accident, surgery and hospital cash, motorbike loss and theft and home fire protection,” the company said in a statement.

“Low-income, rural populations in developing countries tend to live in an environment of elevated risk. Flooding, loss of property from theft or fire, agricultural losses and health concerns all have the potential to cause significant financial hardship to household income over time.

“Being low-income, these communities are often more vulnerable to these risks than the rest of the population, and are the least able to cope when a crisis does occur.

“One of the best ways to mitigate these risks and smooth out fluctuations in income and expenditure is through an insurance policy. However, affordability is key.”

In a country where 70% of the population live in rural areas often in poverty, this type of insurance is sorely needed according to the company.

“IAG’s microinsurance serves as a proof point of how combining industry best practice with local knowledge can provide tangible support to these communities through relevant, meaningful and affordable products,” the statement continues.