J.P. Morgan (NYSE:JPM) is among the latest companies to invest in LeapFrog Investments, which is a microinsurance fund developed to target Asia and Africa low-income communities. They recently invested $10 million in the company for that purpose.
What’s unique about LeapFrog is it’s a business model and not a charity, giving it some long-term possibilities that could be far more sustainable than charities, which normally meet immediate, rather than long-term needs.
LeapFrog recently closed on $137 million which it will use to invest in the two continents, which the company says may reach as many as $25 million people with financial services which will bring them benefits they’ve never had in the past.
Managing director of social finance at J.P. Morgan, John Buley, Jr. said this about J.P. Morgan’s participation in LeapFrog, “We believe that microinsurance is a key innovation that will further the development of business in the social sector, and represents a massive opportunity to meet the inclusive financial services needs of low-income people in developing countries.”
What is particularly valuable about this effort is that business and entrepreneurship which benefits both sides is by far the more sustainable and long-term benefit to people, and if they can make this work and turn a profit, it’ll have long-term, positive repercussions which will help many of the poor people in under-served areas in Asia and Africa.
