Quantified Risk Models For Panamanian Micro-finance

Open Access
Author:
Pugh, Benjamin C
Area of Honors:
Actuarial Science
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Evan Garrett Morgan, Thesis Supervisor
  • Ron Gebhardtsbauer, Honors Advisor
Keywords:
  • Insurance
  • Microfinance
  • Micro-finance
  • Microcredit
  • Actuarial Science
  • Modeling
  • Risk
  • Risk Management
  • Sustainability
Abstract:
Global Brigades is building a microfinance operation in Piriati Embera, Panama. The use of the traditional Grameen banking model’s savings groups leaves the community vulnerable to massive simultaneous default triggered by external events such as flooding. This paper examines the theory and application of actuarial concepts as they apply to microfinance operations in Piriati Embera. This paper will suggest an insurance-based solution to promote growth and sustainability in the community.