Interesting article on why people use pawnbrokers in the Philippines. They are convenient, very simple and quick, require no form filling and are highly tangible.
A thought:
The article mentions the possibility of selling microinsurance through pawnbrokers. It is an interesting marketing idea to present people with the possibility of protecting themselves in advance just at the point at which financial emergencies are most vivid in their mind - when they are dealing with one.
How can microinsurance be made to more closely resemble the advantages of the pawnbroker? Could the pawnbroker be the one to distribute the claims cash at the time of need, to encourage people to see that insurance provides cash for them in emergencies in a similar way to a pawnbroker? Could clients be offered reduced interest on loans taken with the pawnbroker in the event that an emergency is not covered by the insurance?
P.S. Does anyone know of any microinsurance currently being sold through pawnbrokers?
