Case | HBS Case Collection | February 2007 (Revised October 2007)

BASIX

by Shawn A. Cole and Peter Tufano

Abstract

BASIX, an Indian microfinance corporation, must decide whether to continue to sell weather insurance to its clients. A brand-new financial product, weather insurance pays if measured rainfall during the growing season falls below a pre-specified limit. Mr. Sattaiah, managing director of the BASIX's bank, considers a revised insurance policy for the coming season, weighing the costs and potential risks of expanding the product against the potential benefits.

Keywords: Cost vs Benefits; Microfinance; Insurance; Risk Management; Banking Industry; India;

Citation:

Cole, Shawn A., and Peter Tufano. "BASIX." Harvard Business School Case 207-099, February 2007. (Revised October 2007.)