Strengthening Vulnerable Micro-enterprises Through Microinsurance: The Adie Experience

Because of the major role played by MSMEs in the global economy, the microinsurance sector is gradually starting to recognize their importance and put them at the forefront of financial inclusion efforts. Microinsurance addresses the needs of MSMEs by transferring risk to a third party. Businesses can re-allocate the funds they would have needed to save for potential future shocks, towards investment in better technologies and product innovation. MSME finance is also a major priority for G20 leaders, and the World Bank Group has been supporting and implementing projects focusing on strengthening financial services for MSMEs for years to come.

The Microinsurance Network recognizes that there is a real need for the value of insurance to be better understood by small business owners through continuous advocacy and education efforts. To understand the role microinsurance can play for MSMEs and MFIs alike, ADIE, a microfinance institution (MFI) operating nationwide in France with more than 42,500 clients, provides this case study of introducing insurance products into its financial services for MSMEs.