Emerging Insight: Breaking traditional insurance models in Peru
15 November 2022
The Peruvian insurance company Pacífico Seguros identified small enterprises as a great market opportunity, because it believed that microentrepreneurs and emerging consumers need to be protected with products that meet their needs.
Pacifico Seguros designed “Negocio Protegido” (“Protected Business”) for microentrepreneurs and small businesses protecting assets from catastrophes such as theft, fire and natural disasters, and covering insurable material such as content, merchandise, equipment and tools. The insurance policy is linked to a loan from MiBanco, a local microfinance bank.
In the event of a loss, the indemnity corresponds to 100% of the value of the loan amount, which is paid both to a financial institution (pending balance of the loan), and to the insured (amount of the loan already repaid). This strategy aimed to reduce the risk of the lender, but also to give the customer the opportunity to reactivate their business. An innovative element of the coverage is that the insurance product remains valid, even if the client repays the loan, which greatly benefits customers, since they are not subject to having a loan to benefit from the insurance.
Read our latest Social Finance Brief, which explores the history of "Negocio Protegido” in more detail. An earlier Emerging Insight and Social Finance Brief covers the collaboration between Pacífico Seguros and the microfinance institution MiBanco in more detail.
Pacifico Seguros designed “Negocio Protegido” (“Protected Business”) for microentrepreneurs and small businesses protecting assets from catastrophes such as theft, fire and natural disasters, and covering insurable material such as content, merchandise, equipment and tools. The insurance policy is linked to a loan from MiBanco, a local microfinance bank.
In the event of a loss, the indemnity corresponds to 100% of the value of the loan amount, which is paid both to a financial institution (pending balance of the loan), and to the insured (amount of the loan already repaid). This strategy aimed to reduce the risk of the lender, but also to give the customer the opportunity to reactivate their business. An innovative element of the coverage is that the insurance product remains valid, even if the client repays the loan, which greatly benefits customers, since they are not subject to having a loan to benefit from the insurance.
Read our latest Social Finance Brief, which explores the history of "Negocio Protegido” in more detail. An earlier Emerging Insight and Social Finance Brief covers the collaboration between Pacífico Seguros and the microfinance institution MiBanco in more detail.