Context

In sub- Saharan Africa, less than 2% of all MSMEs have any form of insurance, yet they account for over 80% of the jobs and over 50% of the GDP.​

​ MFIs, who lend to MSMEs typically reduce their portfolio at risk (PAR) via a credit life policy, which covers their outstanding loans in case of death of disability of borrower. However, this cover is insufficient.​

Objective

Real People, a Kenyan MFI with a vision of sustainably improving lives wanted to reduce th

The Solution

Enhanced credit linked insurance cover was embedded into Real People’s loans

  1. It covers outstanding loans in the event of loss of life, disability, hospital admission and destruction of business property by fire, burglary and floods​
  2. It covers outstanding loans in the event of loss of life, disability, hospital admission and destruction of business property by fire, burglary and floods​

The Results

  1. 900+​ MSMEs insured in 9 months ​
  2. $22,000​ Claims paid​ ​
  3. 10%​ increase in direct revenue for Real People​ ​