Published: October 15, 2008
Former US president Bill Clinton announced in late September the launch of a new US$100mn company that he claims will be “by far the largest micro-insurance initiative in the world, by several multiples”.
The firm, called LeapFrog Investments, will invest US$100mn over the next 10 years to enable 25mn low income people in Africa and Asia gain access to affordable, quality insurance. Clinton says key focus countries include South Africa, Ghana, Kenya and India.
While over 150mn low-income people now have access to credit, less than half that number has access to insurance. Micro-insurance products protect poor and vulnerable people by helping them manage and diversify risks to their lives, homes, property, health, crops and businesses.
“The estimated market size for micro-insurance is a billion people. Less than 3% of these people now have any kind of insurance,” Clinton said while launching the initiative at a session of the Clinton Global Initiative Annual Meeting in New York.
Andrew Kuper, founder of LeapFrog, says: “There is vast unmet demand for insurance globally; the reality for the insurance industry is that growth will come from emerging markets especially, where most of the population is low income. There is a tremendous opportunity to build profitable and sustainable businesses that at the same time protect low income people and help them escape devastating poverty.”