Asset Insurance

Asset insurance products involve fraud risks which are difficult to manage as they are reinforced by the informality of environment. Contracts of this kind do not give policyholders anything in return (except protection) if the risk does not become real.  Therefore, they are less popular among the poorest clients who usually have more immediate priorities in assigning their resources. 

This type of insurance provides coverage against the loss of or damage to an asset.  It is a complex product because it involves verifying the damage to the asset and determining whether or not the loss is real (fraud risk).

Source: Text based on Dossier thématique Micro-assurance ©2007, www.lamicrofinance.org