Affordable Insurance Solutions


By Lucas Santos on Unsplash

Affordable Insurance Solutions
Life Insurance and General Insurance, particularly Health and Agri-Insurance for Low Income Population
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Business Model Description

Invest in low-cost insurance solutions targeting low-income population (including life insurance and general insurance covering crop/weather protection), specific business lines or micro-insurance companies

Milvik (Cambodia) Micro Insurance Plc. or BIMA Cambodia (BIMA), founded in 2014, is a subsidiary of Milvik BIMA. It provides mobile-delivered insurance and health services. In Cambodia, they have over 500,000 policyholders, with premiums as low as USD 1 per month. They have partnered with Smart Axiata (mobile service provider) in Cambodia and have paid >USD 1.2 mn in claims.(9)

Funds raised: > 2017: USD 96.6 mn from Allianz X at pre-money valuation of ~USD 260 mn, resulting in a post-money valuation of ~USD 300 mn (10) > 2020: USD 30 mn from CreditEase Fintech Investment Fund (CEFIF), LeapFrog Investments and Allianz. (11)

Prevoir (Kampuchea) Micro life Insurance Plc (Prevoir), founded in 2011, is a micro insurance provider in Cambodia, offering health, personal, term, and credit life insurance. They offer insurance services to individuals and companies, in packages as low as USD 15 per person.

Forte Insurance, founded in 1996, is a large insurance company offering car, asset and life insurance at ~USD 0.13 a day. (14) Additionally, they also offer crop and social health insurance to serve low-income farmers [target customers with average land size of 2.5 hectares (ha)]. Its investors include Emerging Markets Investments Pte. Ltd.

Expected Impact

Improve insurance penetration rate to mitigate financial shocks caused by unexpected events and increase financial inclusion for the underserved.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) No Poverty (SDG 1)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)
Sector Sources
  • (1) UNCDF. (2017). Cambodia Financial Inclusion Country Report 2017.,financial%20services%20through%20formal%20providers (2) Measuring Progress: Financial Inclusion in selected ASEAN countries, 2020 (UNCDF) (3) Badzmierowski, B. (2022). Investing for a Purpose in Cambodia: Sevea and Boost Capital. (4) BD Trust. (2019). Financial Access for MSMEs. (5) Khmer Times. (2022). Cambodia Insurance Total Premium Grows 9.5% in 2021.,Regulator%20of%20Cambodia%20(IRC). (6) Masaki, E., Hyder, Z. & Boudjadja, M. (2021). How Cambodia can Meet its Health System Financing and Pandemic Response Challenges. (7) Reach52. (2022). Expansion of Reach52's Insurance Services into Cambodia. (8) Asian Development Bank. (2021). Cambodia Agriculture, Natural Resources, and Rural Development Sector Assessment, Strategy,and Road Map.
IOA Sources
  • (9) BIMA. (n.a.). About BIMA.,over%20%241.2%20million%20in%20claims. (10) TechCrunch. (2017). Bima Raises $97M from Allianz for Microinsurance Aimed at Emerging Markets. (11) African Private Equity and Venture Capital Association.(2020). LeapFrog's BIMA Raises $30MN. (12) Chakraborty, R. (2020). Cambodia: Pandemic Affects Microinsurance Market. (13) Lunden, I. (2020). BIMA Nabs $30M More for Micro-Health and Life Insurance Aimed at Emerging Markets. (14) UNDP. (2013). The Understanding and Need of Low-Income Populations Regarding Microinsurance. (15) Royal Government of Cambodia. (2018). Cambodian. Sustainable Development Goals (CSDGs) Framework (2016-2030). (16) MOP 2021