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Savings in Microinsurance: Lessons from India

Author(s): 
Rob Rusconi
Institutional Sponsor: 
ILO Microinsurance Innovation Facility
Publication date: 
Sunday, January 1, 2012

This Microinsurance Paper assesses four products offered by Indian insurers that combine the benefits of insurance and saving. Combining these two financial instruments makes sense when considering the complex financial lives of low income households. Designing such products is not straightforward, however, as insurers face many trade offs. The paper presents a framework that can be used to analyse the design of savings linked insurance products. The analysis of the characteristics of the four products reviewed in the paper highlights the different approaches taken by the insurers, and provides preliminary insights for others interested in designing similar products.