Asia Africa FISEA - 2010 - LeapFrog

Developing microinsurance offer in Africa and Asia

 

Project start : 2010
Financing : $5 M equity investment and €250 000 subvention for technical assistance
Partner : LeapFrog
 
Context
 
Microinsurance deals with the adaptation of insurance services to clients who cannot afford classic insurance services. To date, only 5% of low income people in developing countries benefit from social and insurance coverage. However, insurance needs against risks (death, accident, disability, property damages, health, agriculture…) are high. The market is evaluated between 1 and 1.5 billion people desirous and able to buy microinsurance products.
LeapFrog Financial Inclusion Fund, that raised $135M of capital, is the only capital investment fund specialized in microinsurance. It invests in Africa and Asia, in particular in South Africa, Kenya, Ghana, India, Philippines and Indonesia.
 
Project objective
 
FISEA ‘s financing aims at fostering the development of quality microinsurance products at affordable prices for low income people in Sub-Saharan Africa.
 
Project description
 
FISEA contributes to this objective through a $5M equity investment within LeapFrog Financial Inclusion Fund. The fund will invest in existing insurance companies and new microinsurance companies, in partnership with insurance distribution companies of a certain size. A first investment operation was signed at the end of 2009. It concerns a $6M investment in AllLife, an insurance company specialized in life-insurance for HIV positive and diabetic people in South Africa. AllLife offers affordable insurance products to a population who had been excluded from them until then.
FISEA also finances, up to €250 000, the technical assistance activities of its support structure, Leapfrog Labs, whose role is to promote innovation and to enhance the growth of the companies belonging to the portfolio.
 
Impacts
 
FISEA’s equity investment in LeapFrog Fund will allow to broaden the insurance coverage and to improve the quality of insurance services to populations who are traditionally excluded from them.
Through its intervention in the microinsurance sector, FISEA contributes to the fight against poverty, the support of employment, the diversification of the financial sector and the development of the private sector.