Dutch NGO WASTE and micro insurance company TATA-AIG have jointly developed a way to improve sanitation using health insurance products based on customer demand. Health insurance premiums will be tailored to the sanitation situation of the target group, so that better sanitation means lower premiums. The Dutch bank SNS-REAAL will provide commercial funding to support the initiative and provide financial engineering advisory services in blending commercial and grant funding.

Other partners in this project, known as FINISH (Financial Inclusion Improves Sanitation and Health) are Indian micro-finance institution BISWA and UNU-MERIT, a joint research and training centre of the United Nations University (UNU) and Maastricht University, in the Netherlands. UNU-MERIT is responsible for academic evaluation of the micro-finance and micro-insurance scheme.

See the project description here

Related news: Microfinance: improving access to water supply and sanitation in urban India, Source South Asia, 08 Dec 2008

Related publication: Fonseca, C. ... [et al.] (2007). Microfinance for water, sanitation and hygiene : an introduction. Delft, The Netherlands, Netherlands Water Partnership (NWP). Download here

Related web sites: SNS-REAAL Water Fund ; WaterPartners International - WaterCredit Initiative ; WASH news Finance - Microcredit

Source: UNU-MERIT, 03 Sep 2008

Tags: financing, sanitation, south asia