MILK Brief #18: Doing the Math - Property Microinsurance in Coastal Colombia

The MILK Project partnered with MAPFRE Colombia in the department of Magdalena, using its Client Math methodology to explore the value proposition of a comprehensive property microinsurance policy for borrowers of the MFI Fundación delamujer. MAPFRE's product was a modular, voluntary insurance product, whereby Fundacion delamujer clients could mix and match structural and contents damage coverage as well as coverage for 3 months of loan payments or of incidental loss of income. This design aimed to make the product relevant and accessible for even the lowest income clients of Fundacion delamujer, who could choose the cheapest coverage options for lost income and loan payment. We find that MAPFRE's product fell short of helping families fully recover from flood damages and lost income and that the fungibility of money and timing of payments makes the story of clients' financial responses particularly complex.