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FINCA International Announces $1.5 Million Grant from AIG to Expand Microinsurance Product Development and Delivery
FINCA International Announces $1.5 Million Grant from AIG to Expand Microinsurance Product Development and Delivery
Published 05-02-07
Submitted by American International Group, Inc. (AIG)
NEW YORK, NY "“ May 1, 2007 - FINCA International today announced that American International Group, Inc. (AIG) has awarded a $1.5M grant to expand the microfinance provider's capacity to offer micro-insurance products to an increasing number of the working poor.
AIG and FINCA pioneered the concept of micro-insurance a decade ago, and continue to lead the way in innovative product design and delivery. As a result of the collaboration, access to micro-insurance is more widely available, enabling FINCA's clients to build stronger and more stable livelihoods, helping ensure a more secure future for their families.
This next step in the relationship will build FINCA's capacity to serve the poor by creating an even broader safety net to protect low-income entrepreneurs from potentially catastrophic losses due to adverse events, such as the death of an income earner, sickness, or the loss of business assets. With AIG's support, FINCA will:
- Conduct market research to support the development of micro-insurance products that respond to the needs of the poor;
- Conduct financial education training so that FINCA clients and staff better understand micro-insurance and other risk management tools;
- Strengthen its institutional risk management programs to ensure FINCA is poised to meet its goal of operating 100,000 Village Banks serving one million clients and their families by 2010.
AIG launched its first micro"“insurance operations with FINCA in Uganda in 1997. Since that time, AIG and FINCA have expanded access to risk management services through FINCA's network of Village Banks in 20 countries throughout Africa, Eurasia and Latin America, delivering services such as credit-life, life, accidental death and disability insurance. This unique alliance combines the skills and experience of a world-class insurance provider with a network of Village Banking programs that is both grassroots and global, helping ensure that working families have the financial tools they need to lift themselves out of poverty. The collaboration between AIG and FINCA is the prototype for the 'partner-agent' model in the emerging field of micro-insurance.
"AIG and FINCA share a commitment to working across barriers to invest in underserved markets," said Martin J. Sullivan, President and CEO, AIG. "We are building upon our ten-year partnership to support FINCA's efforts to create risk management tools that meet the demands of the working poor, providing a safety net for hard-working families around the world."
FINCA International Executive Director Rupert Scofield said, "We are grateful for AIG's vital support for our work in the growing field of micro-insurance. The new products, created as a result of this grant and our ongoing partnership with AIG, will be shared throughout the microfinance industry, helping ensure that millions of the world's poorest entrepreneurs have access to the same security mechanisms as those of us living in the developed world."
About AIG
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. AIG is also a leader in the field of micro-insurance. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. Please visit www.aig.com for more information.
About FINCA
FINCA is a leading international microfinance organization that provides financial services to the world's lowest-income entrepreneurs, helping them to create jobs, build assets and improve their standard of living. Since 1984, FINCA has been committed to breaking the cycle of poverty by providing community-based credit and savings opportunities. In this approach, FINCA has achieved levels of financial and social performance unmatched in its industry while opening the path to socio-economic development for the poorest of the working poor. FINCA is based in Washington DC with local operations in twenty-one countries, serving over 500,000 clients and their families. For more information, please visit www.villagebanking.org.
American International Group, Inc. (AIG)
American International Group, Inc. (AIG)
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. www.aig.com/responsibility
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