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Role of consumer education and technology in microinsurance

When CARE India field officers delivered emergency relief services to the coastal regions ravaged by the 2004 tsunami, they were struck by the communities’ vulnerability to shocks and lack of access to appropriate risk protection tools, and assessed that microinsurance could be an effective product for these communities. Out of this determination, the CARE Insure Lives and Livelihoods (ILAL) microinsurance program was born. In introducing this new program, CARE set out to improve communities’ risk management capacities by improving their understanding of insurance.

A new case study from FAI takes an in-depth look at the key challenges—such as sustainability and performance measurement of the education programme—and how CARE tried to overcome them. FAI's own Aparna Dalal discusses the main findings in the video below.

A side note: Beyond consumer education, CARE has also been making important advances in using technology to improve insurance for the poor. Former FAI research assistant Abby Gray has a nice post over at Next Billion that outlines how CARE is making this work for their clients.