Partnership between Allianz and CARE International
Immediately after a devastating tsunami struck the shores of the Indian Ocean in 2004, Allianz gave generous donations to CARE International, a humanitarian organisation working to rebuild lives and livelihoods in the affected coastal regions in India, Indonesia, Somalia, Sri Lanka, and Thailand. In 2006, Allianz and CARE began a three-year partnership to provide micro-insurance to over 75,000 people in the southern Indian state of Tamil Nadu.
Both Allianz and CARE already have substantial experience with microfinance in India that they will bring into their new partnership. The CARE-Allianz partnership also relies on community groups and self-help groups to administer microinsurance products, such as life and non-life insurance project covering assets, disability and accidents.
Allianz currently sells micro-life insurance policies for 87 cents per year, which provides families with 370 Euros of coverage in the event of a natural or accidental death. Allianz and its partners have found this product remarkably well-suited to the needs of the local market—in this case, poor communities.
CARE has rebuild around 1,600 homes in Tamil Nadu, along with water and sanitation facilities. The CARE-Allianz microinsurance supplements these measures by providing a degree of financial security for many locals.