Piloting Microinsurance Services for Micro-merchants in Bangladesh

The “Piloting Microinsurance Services for Micro-merchants in Bangladesh” project, executed by Carnival Assure Limited with the support of the United Nations Capital Development Fund (UNCDF), aimed to provide customized insurance services to micro-merchants in rural regions, addressing risks such as business damage, medical emergencies, and accidental injuries. Focusing on the Sherpur and Jamalpur districts, the initiative engaged local resellers and MSMEs (Micro, Small, and Medium Enterprises) to raise awareness about microinsurance and demonstrate its potential to safeguard small businesses.

Carnival Assure provided core services that involved customizing microinsurance products specifically designed to meet the primary risks faced by micro-merchants, such as product damage and health-related issues. The onboarding of 263 MSME resellers exceeded the initial target, leading to broader coverage through a network of 6,500 reselling points across Bangladesh. A significant achievement was the deployment of a Management Information System (MIS) that facilitated efficient tracking of data on resellers and insurance sales, enhancing overall project management. To ensure effective use of the platform, training programs were organized for staff and resellers, focusing on insurance products, sales strategies, and platform operation. Field activation activities in Sherpur and Jamalpur boosted the visibility of the microinsurance program.

Additionally, a survey of 300 MSMEs was conducted to assess their specific insurance needs and business risks, further informing service development. Partnerships with value chain partners, like Tawhid Enterprise and Kazi Dawakhana, aided in the distribution and promotion of microinsurance within the targeted districts. Ultimately, 50 MSMEs successfully enrolled, receiving one-year insurance policies with fully paid premiums, thus securing financial protection for these small businesses. Overall, the project effectively demonstrated how microinsurance could enhance financial security and business resilience, with plans to scale the initiative nationwide through its expanding network of resellers.