Dr Godwin Ehigiamusoe, the Managing Director, Lift Above Poverty Organisation (LAPO) Group, has urged flexible and innovative processes in the provision of micro insurance products to small businesses.
Ehigiamusoe, also the Chief Executive Officer of LAPO Microfinance Bank (LAPO MFB) made the call in an interview with our reporter in Benin on Tuesday.
He said that the adoption of innovative and flexible processes by micro insurance companies would encourage small business owners to key into insurance policies.
“The micro insurance company should be able to convince owners of micro and small businesses to get insurance because the low income earners generally do not give priority to insurance.
“They do not like insurance policies, they believe that insurance policies are for the rich and big businesses.
“They also hold this belief of ‘God forbid’. Once you ask a low income person why can’t you insure your sewing machine against theft? He will simply respond “God Forbid’.
“Low income earners and micro and small businesses actually need insurance more than any other type of persons and businesses because they are the most vulnerable to risk,” he noted.
He said that micro insurance products were typical to those rendered by conventional insurance companies, noting that the difference was in process delivery.
According to the LAPO boss, the products development for micro insurance should involve small units of services which should be rendered in innovative ways to meet the peculiar nature of micro and small businesses.
He added that micro finance banks that had been in existence for more than 12 years could provide its institutional structure for micro insurance to reach low income people.
“MFB can go into micro insurance due to the fact that they are targeting the same set of people and the same set of businesses.
“The micro insurance products are typical as those provided by conventional insurance companies; life insurance, health insurance and other policies that protect businesses against risks,’’ he added.