Page 46 - ICE BUSINESS TIMES January 2020

Win-Win-Win

The GBB project has the
combining factors to
benefit all the
stakeholders involved. It
insulates BRAC from
having to write off loans
in the event of the death
of the borrower. At the
same time, GBB shields
the borrower’s family from
falling into a debt trap
after the sudden loss of a
family member. The
insurance coverage
ensures instant funeral
GUARDIAN-BRAC benefit and outstanding
BIMA (GBB): GBB shields Expanding loan repayment on behalf
the
of the family of the
INSURANCE FOR borrower’s Through deceased. The premium
THE UNINSURED! family from Innovation and pricing is calculated by an
accredited professional
Microinsurance is designed to help falling into Joint E ort Actuary, ensuring proper
more people buy insurance coverage a debt trap Through risk assessment and
who were previously unable to afford after the Guardian-BRAC Bima enabling a low cost and a
it. It provides poor and low-income sudden loss (GBB), over 10 million financially viable scheme.
households with the means to protect beneficiaries of BRAC Finally, GLIL reaps the
themselves against the effects of of a family Microfinance came benefits of serving a
financial risk due to death & total member. under the scope of massive client base.
disability of their bread earner. GLIL’s credit shield However, numbers alone
Despite substantial growth in the micro-insurance cannot justify the
insurance sector over the past decade, program (including magnitude of GLILs’
penetration still stands at a very spouse). BRAC is the achievements. They are
meagre percentage; necessitating a largest NGO in the protecting millions of
massive need for overhauling. In such world, with 88.6% of low-income families and
a situation, the progressive Insurance its clients their livelihoods across
Companies have a pivotal role to play (microfinance) being Bangladesh in the event of
in developing this industry along women. The entire the death of a household
with regulators and other proposition was member or the earner.
stakeholders. Being the fastest Significant developed in Microinsurance is an
growing life insurance company of Contributions of partnership with BRAC important safety net
Bangladesh, largest group insurer of to ensure that it meets against various risks for
the country, and a facilitator of Guardian BRAC the needs of the the poorest and most
“financial inclusion”, GLIL has Bima (GBB) in the community. It was vulnerable people of
undertaken a micro-insurance Microinsurance enhanced so that the Bangladesh.
initiative that is ushering a new era spouse of the borrower Guardian-BRAC Bima
in the sector. The effort has been Industry could also be covered, (GBB) is playing a
acknowledged by various local and · 1+ crore lives under as in most cases; the significant role in keeping
international bodies which included coverage spouse of the borrower millions of Bangladeshis
the magazine “Asian Banking and · 97% claim payout inherits financial above the poverty line and
Finance”. They bestowed GLIL with ratio responsibility of the help them to flourish
the prestigious “Insurance Asia · 169 crore BDT paid in family and repayment despite the loss of a
Award in 2017” for this initiative. claims of the debt incurred. crucial family member.

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