American International Group, Inc. (AIG) is a world leader in insurance and financial services, with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer.

The origins of AIG's partnership with FINCA date back to 1998, when AIG and FINCA pioneered the concept of microinsurance.  FINCA had been providing Village Bank loans in Uganda since 1992, and was helping thousands, but there was a shortfall.  When a client that had taken a loan died or became disabled, the burden of repaying the debt fell to their family at a time of mourning and financial hardship.

So together, FINCA Uganda and the AIG Companies, Uganda’s insurance market leader, developed the first-ever life insurance product tailored specially for microfinance clients.

Since taking root in Uganda, AIG’s partnership with FINCA has flourished.  Today, AIG underwrites credit-life insurance for hundreds of thousands of FINCA's clients around the world, mitigating financial stress on grieving families and limiting FINCA’s risk as the lending institution.  In the event of the death of a Village Bank member (and, in many cases, the death of client's spouse), the insurance coverage provides families with a death benefit, makes a one-time payment to defray funeral costs, and repays the borrower's outstanding loan to FINCA.

With a decade of experience working together, FINCA and AIG are exploring ways to bring other demand-driven products to clients such as health insurance and asset insurance.  In addition, AIG has made a substantial philanthropic commitment to FINCA, providing more than $1.5 million in financial support, bringing its technical expertise to bear by helping FINCA develop crisis response and risk management strategies, and offering strategic advice through a seat on the steering committee of the Village Banking Campaign.

As the AIG–FINCA partnership continues to expand, the benefits it brings to families continue to grow … transforming lives, and lasting lifetimes.