Emerging Project Lessons
Informal solidarity schemes are a considered by community as reliable support mechanisms in Mexican rural areas. In rural areas where the offer of financial services is still limited, informal schemes of protection remain key practices to prevent and mitigate risks. Based on the survey and interviews with the target population, it was found out that communitarian and family solidarity mechanisms are widely used as informal mitigation practices. To deal with the most important crisis faced in the last three years, one in four households relied on help from their family. The economic necessity is solved with informal loans (mostly interest-free) that can immediately be accessed as well as “gifts”.
6% of the surveyed households also mentioned communitarian solidarity actions in a shock resolution. This occurs particularly in case of housing destruction caused by weather events. Some municipalities grant informal economic compensation and some communities organize collective rebuilding tasks. In case of contingency, microfinance institutions are not used because they are considered too slow to grant a loan.
The participation of the various actors in the product development value chain of microinsurance, can lead to greater acceptance by the channels and the target population. In the case of the initial microinsurance product the different member organizations of the network did not participate in the product design. Only AMUCSS and the broker designed the product. They jointly determined the premiums on the basis of the income of the target population and the viability of the product, as well as adapted the processes to comply with the law and regulations as back then there was no regulation of micro-insurance.
In terms of the remittance related products, focus groups were conducted and the inputs from managers and directors of partner organizations confirmed the need for providing such services through their organizations. In the case of credit life it was demanded by the organizations.
In the meetings of the members of the RedSol, where directors, developers and managers of organizations participate, the topics covered are related to vulnerability, risk and workshops where their opinions about products and challenges to sell them are covered. These meetings have allowed for the integration of the opinion of the participants into the product design and processes.
Date of last Learning Journey update: October 2011