A Contingent Line of Credit (CLOC) is a new financial instrument tailor-made for microfinance institutions and their smallholder clients and a powerful addition to a portfolio that charts a future of business growth.
A flexible blend of three indexed financial instruments to manage risk have the potential of meeting a rural family’s circumstances and need, strengthening their resilience across their journey to prosperity.
The Global Action Network was launched with the hopes that drawing together key stakeholders and change agents could identify important gaps in knowledge or capabilities, and then innovate solutions to these problems and create resources to address them.
Households have no way to tell whether an index insurance contract will leave them worse off than having no insurance at all. A Minimum Quality Standard (MQS) for index insurance would help to secure vulnerable households and to safeguard markets for future higher-quality contracts.
The typical challenges of basis risk and low uptake have plagued index insurance products for years, but AMA Innovation Lab researchers are crafting solutions by designing innovations around the structure of the insurance contracts.
A deeper understanding of what causes the poor to be reluctant to plan, save and invest in their future may provide valuable insights into designing interventions that address the source of the problem, not just the symptoms, to create lasting change.
Because the VISA Model uses savings groups to aggregate small purchases into one larger purchase, and to pass on to the insurance company, the operating costs of the company are reduced and the sales increased.