Microfinance Focus March 31, 2011: IFC, a member of the World Bank Group, recently signed an agreement with American Life, an insurance company in Brazil, to launch a life insurance product targeting low-income families in the country.

IFC’s advisory services to American Life will start with a business planning effort, followed by a pilot to test and refine the product. The expansion phase is scheduled for 2012. The target market for microinsurance in Brazil is composed of 128 million people whose families earn less than $800 a month. Despite the size of the market, expansion thus far has been modest and has not penetrated low-income populations.

Pedro de Freitas, Head of American Life said, “American Life is a Brazilian insurance company that offers life insurance to niche segments not covered by most large insurance companies. Building a strong presence in the microinsurance space is now among our high priorities.”

IFC’s strategy in Brazil is also aimed to strengthen infrastructure and public services, including health and education, by increasing private sector participation. Other key areas include improving the investment climate, promoting socially and environmentally sustainable practices, helping small businesses join the formal economy, and strengthening private sector competitiveness.