Starting with what you've got

"But why would I want to see you again? I already know what you look like."

An eight year old's reply when I told her that it was the last session I would spend working on Maths with her.

An (almost) cute example of children's lack of sentimentality and tendency to take things literally, but, also, kind of true...

I'd visited her school in East London once a week for two terms as part of a CSR programme, and I had loved it. I'd made a connection with the area I worked in and I had left the office and done something different for a couple of hours a week.

Had the pupil I was working with improved in her Maths? I'm not convinced.
Had she enjoyed it? Yes, I think so.
Would it make much difference in her life? Probably not.

There is nothing wrong with these kind of CSR programmes. They do a bit of good and no harm. The problem is that they miss the point. Most companies have so much at their disposal; I was working with top finance, risk and management professionals, not teachers.

Companies should start by thinking about how they can make the most difference with what they already have: turning their existing skills to a social purpose...

Maybe start with what you've got and go micro?

Thinking about distrust

Clients' risk aversion is a double edged sword for microinsurers. On the one hand, we would expect the high levels of risk aversion often shown by poor people to push them towards seeking ways to manage risks, like insurance. On the other hand, for our clients microinsurance itself is a risk.

The truth is that for most poor people insurance is new and untested. Where they do have experience it is often negative. Insurance is difficult to understand and the protection is always limited to certain conditions.

How can a poor person be sure that insurance is the best way to deal with their risks? And even if they are convinced in principle, how can they be sure that the insurance company will still be around and will honour its promises?

It's easy to lament this lack of trust and try to change this 'wrong' mindset. But we need to start off by recognising that this attitude is legitimate, even sensible. Taking insurance is a risk and our clients do well to weigh the pros and cons carefully.