Keeping the overarching and objective of INAFI network to address poverty through microfinance services and in particular to address the risks and vulnerabilities of the poor, INAFI initiated pilot initiative involving 12 member organizations in three continents (Africa Asia and Latin America).
Further the rationale for the initiative stems from the fact that the insurance services are not made available to the poor. Besides the access factor the services that are provided in the market by the mainstream insurance companies are not affordable, both on the accessibility and availability front, the poor are denied.
Yet another rationale for the initiative is the encouraging fact that a few initiatives are already under way such as the one INAFI Bangladesh through the MIME Project, ASKMI of INAFI member in India (DHAN Foundation) have given the practical hope that given the right kind of design and implementation the insurance services to the poor is a feasible and viable proposition.
Further, this pilot initiative is also inspired by the fact that many members of the network started feeling the need or demand from the members for insurance services as an essential ‘add on’ to the savings and credit programmes already under implementation by the member organizations.