SAN SALVADOR–The U.S. Agency for International Development (USAID), together with the Foundation for Training and Assistance in Microfinance (FUNDAMICRO) and the Development Bank of El Salvador (BANDESAL) inaugurated the "First Regional Forum on Microinsurance: Experiences and Opportunities".

Microinsurance is a mechanism to protect low-income people, primarily informal sector workers, against risks such as accidents, illness, death in the family, and natural disasters, among others, in exchange for payment of an insurance that fits their needs, income and risk level.  During the forum, specialized consultants in microinsurance management in Latin America presented their experiences and successful implementation of this financial product. The forum will also help to broaden the knowledge of participants about the current challenges and opportunities at the regional level for the development of microinsurance, potential distribution channels, and the importance of this service for financial inclusion of the lower-income population.

USAID is investing more than $ 2.8 million through its Improving Access to Financial Services Project to improve access to financial services for SMEs to expand their business, create more jobs and contribute to the economy of El Salvador. To date, the project has established agreements with eight microfinance institutions.

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