"Aujo!"...

…means (literally) “Come again!” but is really used for “Goodbye!”.

Apologies for the lack of posts this time around…The last week in India was spent finalizing the report on my findings and trying to relax a bit. I got back to work on Monday and walked over to SEWA Bank which is where the micro-lending division of SEWA is based. I met with a small group there that is heading the micro-“pensions” initiative. To be honest, I think we’re a ways from being able to provide a truly viable pensions group. However, this is more like a long-term savings account. There are about 35,000 members and they save about 100Rs a month on average. Unlike a bank account, this is with an understanding that the money should remain there until the member turns 58 (the “Normal Retirement Age”). SEWA began this product after noticing the trend away from caring for elders in their old age, in combination with the underprivileged being literally forced to continue working in their old age in order to survive. However, there’s no regulations or excise taxes / disincentives for people who withdraw their funds before retirement, so they are finding a fair number of members request the funds back before age 58. And ethically speaking, it becomes difficult because it is holistically unfair to charge members who withdraw their funds early – the simple reason being that they likely are withdrawing the funds with good reason. The product offering is fairly new – it was only started during the latter half of 2006. The main issues are going to be educating members on the value of keeping the funds there until they “retire” (i.e. are no longer able to work), and how to invest the funds (similar issues that the US has with 401(k) / Defined Contribution plans). I may be working with them later this year in order to put together a case study on the initiative. However, there are so many questions that need to be answered before micro-pensions can be practical. Should our focus be first providing adequate health and asset insurance? Should saving for other purposes come before pensions? Will the trend away from elderly care by children continue? How do we convince members to continue to save for the long-term while they are struggling in the short-term? How should the funds be invested? Should this be determined by SEWA or the member? How do we effectively educate the members?

On Friday I gave a presentation on some financial statement projections I had worked on, and my findings on the claims analysis. We spent a long time going over the impact of pricing and premium rates on the outlook for the next few years, and discussed pros / cons to differential pricing based on rural / urban. It’s a difficult conversation to have, even more difficult to convince the sales team. There were discussions on the best incentives for Agewaans, and how to motivate them to sell coverage. Laura (a woman from the US / France who has been working at VimoSEWA for a few months now) brought up the point that there is a market for this insurance in Ahmedabad West – which is not as drastically impacted by floods (and their resulting claims), and which has a large number of the housecleansers / dishwashers / etc. that would be able to afford insurance. They do not work through unions so VimoSEWA does not have as many ties to that community, but it is a niche worth investigating further.

Friday afternoon I said my goodbyes. There are some people, Falguniben in particular, that I have grown rather fond of. There is a quality about her that I just find so soothing – an aura about her that is so calming. She’s about my age, and even though we have completely different backgrounds, I found myself never at a loss for words when I was with her. For me, that has been rare in India – even when I lived with the nursing students at Goraj. While sweet and very nice, I didn’t find myself able to talk to them freely, or for any length of time. The conversation would inevitably end if not abruptly, then awkwardly. With Falguniben it was different – I could actually relate to her.

I do truly believe SEWA is a great organization, but I also think there are some shortcomings. For one, they have to “move with the times” – handicrafts and embroidery provided an effective means for their members to generate a fairly stable income over the last twenty years. But times are changing, and there needs to be more of an entrepreneurial aspect to the way they conduct their organization. Training members or providing information on how to learn other skills that will be more valuable in today’s world is a serious shortcoming. In addition, as with any NGO (I am quickly learning) – it’s just not as productive and efficient as it could be. Sofi and I once had this conversation while deciding whether we wanted to pursue a non-profit rating agency (i.e. a system to “rate” non-profit companies on their effectiveness, honesty, etc. so that when people donate funds they have a system with which to compare different organizations, and so that non-profits themselves would be motivated to improve their own processes). Eventually we decided against it – mostly because we don’t have the time, but also because Sofi brought up the (valid) point that non-profits do not have the same resources / funding that a private company has, and thus shouldn’t be held to the same standards of efficiency. It’s hard though – when you’ve worked in the private sector – to come to an NGO setting. You expect the same environment that you are used to but it’s very very different. The same political games become exponentially more complex.

The last few days in India I felt pretty ill. I think the problem with such a short trip here is that by the time you actually get used to anything, it’s time to come home. Mind you, a fever, sore-throat and blood-thirsty mosquitoes did not keep me from having the best chaat I’ve ever had in my life (and the most spicy) and enjoying my last Butterscotch ice cream cone for a long while.

Every year or so for the last three years, I go on these little trips by myself – but in all honesty, travelling alone always seems better in theory than it does in execution. I always make the mistake of expecting to come back just a little bit wiser. I leave thinking that when I return, I’ll know exactly who I am, who I want to be, and how to get there. I am excited to continue to work with VimoSEWA and other micro-insurance initiatives. The great part about this trip is that there is a lot I can do and learn once I am back in the US. It’s been an interesting intersection between various aspects of my life – Gujarat, volunteering, and actuarial science.

Strangely, it occurred to me in my last days in India that I had not taken a single picture.

I didn’t need to. I know I will be back.