Sat | Oct 20, 2018

Implement micro-insurance scheme to assist MSME sector - Hyde

Published:Friday | June 22, 2018 | 12:10 AM

Gillian Hyde, general manager of JN Small Business Loans, has affirmed the need for the speedy implementation of a micro-insurance scheme for micro small and medium enterprises, to assist them to withstand the effects of natural disasters, and other perils that may affect their livelihood.

Hyde made the call recently during a panel discussion at the Manchester Chamber of Commerce Conference and Expo mounted under the theme: 'International Trade and Sustainable Development' at the Golf View Hotel.

"Based on our discussion on sustainable development, we at JN Small Business Loan, use this opportunity to call for the speedy implementation of an insurance scheme to assist entrepreneurs in times of disaster. This scheme would help the microfinance sector to manage risks, caused by natural disasters and other perils that may befall our clients," Hyde stated.

Micro-insurance is generally designed for entrepreneurs such as fishermen, small-scale farmers, taxi drivers, domestic workers and other micro-entrepreneurs. It offers coverage for property, term life, health, stock, crop, livestock, and calamity.

 

Climate change

 

The general manager added that currently, climate change is impacting both the agricultural sector and townships, hence such a scheme is necessary.

"From our experience, natural disasters and other perils can have a devastating effect on micro entrepreneurs and many persons are struggling to return to the level they achieved prior to these events," Hyde said, while noting that after the floods in Montego Bay late last year, many entrepreneurs experienced difficulties in resuming their operations.

Hyde added that such an insurance facility would enable entrepreneurs to rebound faster, while enabling the sector to achieve its potential.

"This micro-insurance scheme would provide the comfort of knowing that in the event of a flood, theft, illness or fire, they would be able to sustain their business; and school their children just the same," she stated.

She added that the scheme could be a public-private sector partnership, with both sectors covering a part of the sum insured.

"Over the years, we have assisted our clients to get back on their feet, through special loans, moratoriums, write-offs and other facilities. This has helped many to maintain their lives. However, as disaster levels increase, there is urgent need to establish a national programme to provide assistance," she added.