Climate-risk protection for microfinance lenders

Why this is interesting

• When a weather shock hits many borrowers at once, repayment can fall together. Cover held by the lender may be simpler to distribute than cover sold to each borrower, but it raises the question of whether borrowers benefit directly.
• The source is Ankur Capital explaining why it backed IBISA. This product line is an existing company’s offering described by its investor, so it is an example of an approach rather than evidence that buyers are unserved.