Impact Study. Innovation for Increasing the Security on Unnerved and Needy Clients (Insurance)

This study examines the impact of ‘Anidaso in reducing their vulnerability of low-income groups and poor people to life-cycle risks.The study covers five participating Rural Community Banks/ microfinance institutions (RCBs/MFIs) in which ‘CARE International, Ghana and ‘Gemini Life Insurance Company (GLCO) piloted the project.The study assesses:

• Changes in risk management mechanisms,
• The demand/sales of Anidaso,
• The ability of policyholders to pay premiums regularly,
• The impact of government policies on Anidaso,
• Developments regarding the introductions of other microinsurance products by other insurance companies.

The study finds that:

• Anidaso micro-insurance has the potential to reduce the vulnerability of the low-income and poor to life-cycle risks,
• Policy-holders believe that Anidaso provides a safety net against life-cycle risks and is an avenue for investment,
• They expect the coverage of the product to extend to financing childrens education,
• The RCBs, MFIs and other stakeholders believe that the low-levels of premium of Anidaso allow the low-income and poor to participate and benefit from insurance,
• However, Anidaso is suited principally to formal sector employees with stable and regular income streams,
• This leaves out small holder farmers, who are the most vulnerable to life-cycle risks in Ghana,
• Anidaso has low penetration due to organizational problems of the RCBs and MFIs.

The paper concludes by describing innovative measures that GLICO has implemented to improve awareness about and outreach of Anidaso.