MicroEnsure FC proposes to make an equity and subordinated debt investment package of up to USD 2.1 million in MicroEnsure (ME), a leading micro-insurance facilitator with operations in Africa and emerging Asia. ME is highly innovative in the provision of micro-insurance through mass distribution channels such as MFIs and telecom companies (telecoms).  The project supports ME transformation process from a donor-funded NGO business model to a for-profit company focusing on reaching financial sustainability. IFCs investment would be part of a USD 7 million investment package, which aims to make the company commercially sustainable by: (i) expanding MEs client base through a partnership with a leading telecom and innovator in mobile financial services, which would initially focus on 4 Asian markets, (ii) strengthening the Companys equity base, and (iii) expanding the Companys shareholder base to incorporate more commercially minded investors.  IFCs initial disbursement of the investment would be for approximately USD 1.7 million for approximately 17.6% stake in ME. And a second tranche disbursement is planned for approximately USD 0.4 million one year after the first disbursement, for a cumulative total of 19% equity share in ME.    MicroEnsure is a leading micro-insurance facilitator that offers a range of affordable insurance solutions to the low income market.  ME currently operates in five countries and currently offers insurance products to 4 million people.  ME is a three-time winner of the Financial Times/IFC Sustainability Award. ME provides a range of services along the insurance value chain, including: product design, intermediation, administration, claims management services and third party administration (TPA). Essential Protection of the Less-privileged: Unpredictable events, such as illness, loss of assets, death or accidental disability of breadwinner, bring devastating consequences to the poor, particularly in developing countries. Natural disasters such as windstorm/cyclones, floods and earthquakes constantly represent a threat to poor households and small enterprises. It is currently estimated that the current penetration of microinsurance is close to 2% of the potential market worldwide and that up to 4 billion people at the ''bottom of the pyramid'' could potentially benefit from microinsurance to mitigate their vulnerabilty against risks and disasters. Insurance can prevent people from lossing the achievements of their whole life and from falling back into abhorent poverty.  The Project is expected to increase the availability of micro-insurance products to low-income people in Sub Saharan Africa and Emerging Asia, markets that have very low insurance penetration rates. Based on conservative projections, MicroEnsure (ME) expects an increase of more than 7 million low-income people accessing micro-insurance in the next 5 years, however there is a potential for this outreach to be much higher.   ME is actively engaged in the provision and development of weather index insurance, a new and innovative product, currently in several countries and reaching tens of thousands of low-income farmers. As ME continues to develop the technology and management of this product, it has the potential to be rolled out on a mass scale.  IFC expects the project to have a strong demonstration effect in the micro-insurance space by establishing the viability and profitability of a micro-insurance platform that can successfully deliver tailored products and utilize innovative distribution channels to reach the low income segment.