2. Microinsurance and
Savings Groups
Sybil Chidiac, CARE USA - Access Africa
Jerome Dadjo, CRS Benin
Patrick Kimathi, Jubilee Insurance Uganda

3. Savings groups and their purpose
Builds on traditional In 1991, CARE originated SGs in
Niger
borrowing and lending
practices to create self-
sufficient savings and loans
groups
• Rural outreach
• Poverty outreach
• Flexibility
• Informal structure
Products Offered in SGs:
Globally over 5 million have FS at
Savings their doorsteps through SGs
Loans
Insurance

4. What is the need for external insurance?
1. CARE forged a partnership with MicroEnsure
2. Collaborated on market research and identified a
product
3. Defined product specification that would cover the risks
of VSLA members
Worldwide, MicroEnsure found the cost of a funeral to be
prohibitively expensive and perilous for a family. In Tororo:
• One VSLA had members earning an estimated $22.70
USD a month, yet they estimated funeral costs at
approximately $136 USD.
• Social fund in VSLAs too small to cover larger risks,
providing $2.27 – $6.80 in relief, a paltry sum in
comparison to the amount needed
• This led many members to borrow as much as they
could from the VSLA and then find the rest from family
members, local lenders, etc
• One VSLA had attempted to create their own funeral
insurance product to combat this risk, but failed due to
the limited pool of capital they were able to raise

5. CARE and MicroEnsure
Premium
• $2.85 (6000 UGX)
Coverage Period
• 12 months once entire premium paid
Coverage
• VSLA Member – $190
• Spouse – $190
• Four children (biological or legally adopted) – $48
Eligibility
• All family members insured and beneficiaries
Restrictions
• 18-65 years of age at time of purchase. Renewal up to 70 years old
• Children must not be above 21 yrs of age

6. CARE and Financial Linkages
Linkage Guidelines (developed in 2008):
• Client need identification
• Build/ customize the product
• Identify/ build distribution channels
• Build capacity of distribution intermediaries
• VSLA selection for linkage
• Client awareness building
• Monitoring and evaluation system for linkage
• Development of protocols, internal control and MIS
for managing linkage relationship

7. CARE and Financial Linkages
Key Principles of Linkages upheld (developed in 2008):
• Groups are linked not individuals
• Linkage is demand driven not supply driven
• Core principle’s of VSLA methodology are upheld
• Emphasis on member savings is maintained
• Member savings are not held as collateral
• Only mature groups are linked
• Conservative savings to credit ratio is maintained

8. Jubilee + CARE Progress Report
Product Specifications
New feasibility study done in Western
Uganda. $13.60 (2 installments of $6.80)
12 months
=>Identified needs – VSLA member/ spouse => $227
health, education, funeral expenses Up to 6 children (biological or legally
and crop failure. adopted) => $ 136) each.
Limitations:
Within first 30 days – 25% of benefit
Training:
Within 31st to 60th day – 50% of
o Trained over 100 community
benefit
based trainers (CBT’s)
Within 61st to 90th day – 75% of
o Trained board members and benefit
senior staff of implementing
After 90 days – 100% of benefit
partner organization.
Member / Spouse – 18 to 65 years
(renewal up to 70 years)
In progress: Children - up to 23
 Printing of program forms Self inflicted injury or suicide.
 Opening up of MTN mobile money War and related risks.
account.
Note: No policies yet issued

9. CRS – SILC in Benin
Background:
CRS formed Savings and Internal Lending Communities
(SILC)
SILC members requested that CRS transform their group
into health mutual
=> Investigation to understand why these persistent requests
Literature review and informative visits to understand health
mutual practices
CRS Benin contacted 4 private insurance companies to offer
microinsurance, then chose the best partner to collaborate
with

10. CRS – Microinsurance in Benin
Background:
=> Feasibility study on healthcare supply & demand in northern
Benin
=> Feedback and design of the microinsurance product with all
stakeholders
Informing the SILCs of the final product being offered,
beginning pre-registration
Preparing management tools, documents, contracts, and
trainings for partners
Insurance coverage will begin January 1st, 2012

11. Medical Insurance – CRS in Benin
Premium and coverage period:
o $4.75 (2280 FCFA) per person for 12 months
Scope and benefit amount:
o Maximum $83.33 (40,000 FCFA) per person
o Doctor visits covered 100%,
operations and medication covered 70%
Eligibility criteria:
o Primary insurance holder must be a SILC
member, his/her spouse and up to 6
children also covered

12. Life Insurance – CRS in Benin
Premium and coverage period:
o $2.50 (1200 FCFA) per person for 12 months
Scope and benefit amount:
o $208.33 (100,000 FCFA) for incapacitating disability
or death
Eligibility criteria:
o Primary insurance holder must be a SILC
member, his/her spouse and up to 6
children also covered

13. Micro Ensure Jubilee CRS Health CRS Life
Premium $2.85 (6000 UGX) $13.60 (2 installments of $6.80) $4.75 (2280 FCFA) $2.50 (1200 FCFA)
Coverage 12 months once 12 months 12 months once entire 12 months once entire
Period entire premium paid premium paid premium paid
Coverage VSLA Member – VSLA member/ spouse => SILC member–$83.33 SILC member–$208.33
$190 $227 (40,000 FCFA) (100,000 FCFA)
Spouse – $190 Up to 6 children (biological Spouse – $83.33 (40,000 Spouse – $208.33
Four children or legally adopted) => $ 136) FCFA (100,000 FCFA)
(biological or each. Six children (biological or Six children (biological
legally adopted) – Limitations: legally adopted) – $83.33 or legally adopted) –
$48 Within first 30 days – 25% of (40,000 FCFA) $208.33 (100,000
benefit FCFA)
Within 31st to 60th day –
50% of benefit
Within 61st to 90th day –
75% of benefit
After 90 days – 100% of
benefit
Eligibility All family members Member / Spouse – 18 to 65 All family members insured All family members
insured and years (renewal up to 70 and beneficiaries insured and
beneficiaries years) beneficiaries
Children - up to 23
Restrictions 18-65 years of age Self inflicted injury or suicide. Principal insured party Principal insured party
at time of War and related risks. must be a SILC member; must be a SILC
purchase. Renewal spouse & children on the member; spouse &
up to 70 years old same plan children on the same
Children must not plan
be above 21 yrs of
age

14. What does it mean for members?
65 years and a mother of 8.
Lost her husband in June 2010,
Received a compensation
equivalent to $181 USD
Used to cater for funeral
expenses
Also kept aside $45 to deposit
Anna Kibusse, member of on land to increase food
Nangilisa VSLA Butalegja District production in order for her to
provide food for her children.

15. What have we learned in engaging with
Insurance Companies? (CRS)
Critical Assumptions:
• Mutual healthcare services: unprofessional, complicated, and heavily
subsidized
• Promising market for insurance companies based on mobile market
example
• NSIA is committed to lead and prepare the strategy for implementing the
upcoming universal insurance system in West Africa
Potential Risks:
• Health insurance is less profitable than others insurance services
• Poor quality of healthcare services
• Intensive strikes in public health centers
• Frauds in health centers or driven by communities
• Floods, disasters and risks
• Change in government policies

16. What have we learned in engaging with
Insurance Companies? (CRS)
Risk Mitigation?
• Payment in advance premium of 6 or 12 months
• Mechanisms to combat fraud (prevention and detection) - contracts,
compliance with treatment protocols prescribed by the government,
management tools and healthcare procedures
• Consultative and working group/committee meetings each quarter
• Awareness and community education on their responsibilities
• Dialogue with health authorities
• Indivisibility of health micro-insurance (life and health insurance) (life
more expensive but very profitable)
• Strong graduated groups are targeted
• Caritas to continue community mobilization

17. What have we learned in engaging with
Insurance Companies? (CARE)
Lessons
• Important to clarify, document and agree upon the role of the
implementing partner especially in marketing of the funeral
insurance.
• Group subscription rather individuals should be emphasized so as
increase the number of beneficiaries and cost effectiveness
• All premium payments to be done directly to the insurance
company’s bank account to mitigate risks
• Techniques need to be developed to empower CBTs for their
training to VSLAs on the insurance product offered.

18. What have we learned in engaging with
Insurance Companies? (CARE)
Successes:
• CARE has been able to take learning that occurs during implementation
and work with ME to adjust the working document
• CARE Uganda has review of the VSLA training manual and incorporated
external micro insurance as one of the VSLA concepts
• Fully incorporating the insurance products into the trainer’s
capacity, training was designed for Field Officers on micro insurance
marketing to ensure a clear understanding and interpretation of the
policy.
• First linkage for CARE between Insurance Company and VSLAs. Provided
many lessons on taking such a linkage to other countries. Market research
also brought in ideas for the next insurance product needed by VSLA
members.
• Opportunity: M-Pesa a definite method of premium payment that will be
explored in the coming months. This will reduce costs for the premium
holders and for MicroEnsure for premium payments and pay outs.

19. What are the incentives for Jubilee to get
involved with Savings Groups?
1. Management of risk - vulnerable to large
financial burdens e.g death.
2. Utilize existing structure to save costs.
3. Educated enough on financial matters and
how to manage risks – from emergency fund.

20. What were the key considerations for a
financial institution when designing a
product for Savings Groups?
– Needs of the people and affordability.
– Distribution channel.
– General mortality / claims history.