Given the serious effects generated by the different national situations, every day the interest of microentrepreneurs in having policies contracted to face potentially catastrophic events grows.
Colombia News.
In light of the pandemic and the national strike, the Colombian economy suffered a severe blow that led many Colombians to rethink the concept of insurance, especially microentrepreneurs who have sought products that not only offer protection, but also peace of mind. .
The good news is that microentrepreneurs are becoming more aware of the protection provided by insurance, especially when there is uncertainty and vulnerability to possible unforeseen events.
For this reason, financial institutions in Colombia are partnering with insurance companies to make these products available to microfinance clients. This association, known as bancassurance, has evolved in recent years to better meet the needs of individuals.
And, mainly, the pandemic has left a devastating impact on Colombian homes. According to figures from Fasecolda, the insurance union, it is estimated that the arrival of Covid-19 has cost insurers an estimated $2.1 billion and 128,000 Colombians have died as of November 2021 from this disease.
This scenario shows the importance of the microinsurance culture reaching and taking hold, and in response to this Bank W has been a leader in this, as well as in offering microinsurance products, specially designed for independent workers who do not have enough resources to insure themselves or their families against the unexpected.
Coronavirus impacted microenterprises
In fact, until October 2021, Bank W, together with the insurance companies, paid more than $24,000 million in claims such as death, total and permanent disability to its micro-entrepreneur clients, represented in 7,979 cases.
This was stated by Rafael Kruger, Insurance Manager of Banco W, in his most recent opinion column: Microinsurance: allies of microentrepreneurs and their families during the national situation “of which 50% of the payments made for this product were related to cases of customer deaths due to Covid-19. Mostly microentrepreneurs who are heads of households who were in charge of bringing sustenance to their homes.“, He said.
Meanwhile, the voluntary insurance offered by the financial entity provided protection and compensation for $11,964 million to various independent workers. “Of which 97% $11,604 million was transferred to our clients or their beneficiaries and 3% ($360 million) as installment payment of their credits, helping many people to improve their businesses and their financial situation during 2021Kruger commented.
It should be noted that in Colombia, only 36% of the population has some type of insurance, which leaves a large part of the population unprotected in the event of an emergency. So to help solve this problem, Bank W will continue its commitment to expand microinsurance services throughout the country.
Well, the financial entity plans to continue offering affordable protection solutions to micro-entrepreneurs and the rural population. This effort is part of Banco W’s broader mission to promote financial inclusion and build a culture of protection in Colombia.
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