Long a topic of discussion, insurers and reinsurers are beginning to enter the microinsurance space. Scor (SCOR) firm invested in LeapFrog Investments, the first microinsurance fund, last month, and last week, the Microinsurance Network was launched in an effort to raise awareness of the sector.

In a mature industry, microinsurance is seen as having considerable growth potential, especially given the large numbers of people around the world who live without any form of coverage. Microinsurance protection ranges from property catastrophe to life and health. A recent study by Lloyd's of London found that 135 million people, 5% of the world's low-income people, are using microinsurance products, but that the total market size could range from 1.5 billion to 3 billion.

Continue reading Small is beautiful: Insurance companies turn to micro for growth

Small is beautiful: Insurance companies turn to micro for growth originally appeared on BloggingStocks on Thu, 10 Dec 2009 14:20:00 EST. Please see our terms for use of feeds.

With all the negative headlines that the subprime lending industry is getting lately -- and deservedly so -- it's easy to forget about how important it is. Without question, the availability of credit can be an extremely potent force in the battle for upward mobility.

For 25 years, Muhammad Yunus's Grameen Bank have been doing subprime lending right: making small loans to people in developing countries to give them a chance to start their own businesses and provide for their families -- About 97% of Grameen's borrowers are women.

This weekend's Wall Street Journal reports that "Mr. Yunus has now brought Grameen to this borough of New York City. Since taking off in January, Grameen America has lent out a total of $145,000, with interest rates at around 15% on the declining loan balance. The money will be used for everything from taxi registrations to sewing machines."

Reading Mr. Yunus's interview with the Journal -- where he opines on the American subprime mess -- I can't help but feel crotchety about how badly we have messed up lending in this country. Yunus has built an institution with an extremely low default rates based on loans to driven entrepreneurs.

Continue reading The sweeter side of subprime lending

The sweeter side of subprime lending originally appeared on BloggingStocks on Sat, 01 Mar 2008 15:40:00 EST. Please see our terms for use of feeds.

If you've read Muhammad Yunas' amazing book Banker to the Poor, you know what a profound impact microlending can have on third world countries. Tiny loans (as little as $10 in some cases) have allowed poor families to invest in the rudiments of a business, in some cases breaking the cycle of poverty.

Now MicroPlace.com, with the backing of eBay Inc. (NASDAQ: EBAY), wants to make it easier for those of us in the Western world to finance these endeavors -- and earn a return too, as high as 4%.

While the site may not be profitable and certainly isn't a material contribution to a company the size of eBay, it could help the company where it needs help these days: its reputation.

The minimum investment is only $100, and subsequent contributions can be as little as $50. It's definitely something worth looking into, and the fact that you can earn interest makes this an ideal way to "do well by doing good."

If you're a parent, I would suggest opening up an account for you children this holiday season. It's a way to give them the gift of giving back, along with that Nintendo Wii or pair of Heelys.

eBay shows off its socially responsible side: Microfinance originally appeared on BloggingStocks on Mon, 05 Nov 2007 17:44:00 EST. Please see our terms for use of feeds.