Thank you for your comments and for directing us to useful resources. We agree with you on the point that MFIs offer a promising route to take insurance to low-income segments and further financial inclusion. While bundling can certainly be an innovative method to offer risk cover to clients at the point of sale of other financial products, we find that its value proposition to the client is often reduced when solutions offered are not tailored to their insurance needs. Credit insurance, for example, often protects the interests of the lender and not so much the client, while the cost is passed on to the latter. As rightly pointed out by you in your blogpost, customer centricity and not profit as the sole motivator would be the ideal way to go about it.
Thank you for your comments and for directing us to useful resources. We agree with you on the point that MFIs offer a promising route to take insurance to low-income segments and further financial inclusion. While bundling can certainly be an innovative method to offer risk cover to clients at the point of sale of other financial products, we find that its value proposition to the client is often reduced when solutions offered are not tailored to their insurance needs. Credit insurance, for example, often protects the interests of the lender and not so much the client, while the cost is passed on to the latter. As rightly pointed out by you in your blogpost, customer centricity and not profit as the sole motivator would be the ideal way to go about it.