Savings and Loans Companies are Tier 2 banks in Ghana. They specialize in lending to the SMEs across the country. MIC provides solutions to four of the largest lenders in this segment.
Problem
As their loan book expanded, they were faced with a huge number of loan defaults due to the death, disability and hospitalization of borrowers. This in turn impacted heavily on their non-performing loan ratios.
Solution
Embedding life and property insurance into loans to ameliorate the effects of perils such as death and property destruction on the default rate on loan book.
Implementation
MIC employs its MiConnect Platform to administer the policy to ensure proper data administration and claims monitoring and payment.
Results
A healthy loan book devoid of defaults due to insured perils.
This intervention has resulted in payouts of over 3,100 claims amounting to approximately GHS 7,600,000 since 2018.
This has advanced the financial inclusion agenda as most of the claimants have never had any form of insurance prior to being enrolled.
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