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Microinsurance: A macro change in CSR strategy


Harvard business professor and CSR thought leader Michael Porter exhorts businesses to “reconfigure the value chain” to create shared social and economic valuewhile reinforcing a company’s strategy.

The insurance industry isn’t known for Porter-inspired practices. But a handful of companies are changing this perception, pioneering the idea of microinsurance products that reach underserved consumers in countries like India, Senegal, Cameroon and Colombia.

The Microinsurance Opportunity

Microinsurance addresses the problem of poverty caused by unexpected life events like sudden deaths, crop failures or natural disasters. With no savings to cushion them against such risks, the poor are obliged to take loans with crippling interest rates or to sell their few tools and possessions, thereby losing their source of income. Worldwide, only 80 million poor people (3% of the poor) are insured.

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