Droughts in the Indian Sub-Continent.  Flooding in East Asia.  These disastrous occurrences are trending towards becoming more of a frequent reality as our global climate shifts.

Shifts in weather patterns have a global ripple effect, but present the largest danger for farmers at the Bottom of the Pyramid.  Their livelihood depends on consistent (or at least somewhat predictable) weather patterns.

The increased unpredictability of rainfall is opening the door for something the micro finance industry desperately needs: a fresh promising face.

Microinsurance.

Yes, it has been around for a little while now, but the penetration rate for micro insurance (in India, for example) are pitifully low.  There exists a large opportunity for MFIs to expand their offerings, not to mention show off the customer service skills they’ve since learned from the rocky micro-loan early days.

The Financial Times  has sung the praises of micro insurance as the next big product in micro finance; where will MFIs fit into this expanding area of opportunity?

- Chris