Emerging Project Lessons
A model that enables small organizations to get familiar with microinsurance concepts and activities allows a better interaction between rural organizations and insurance companies. On the one hand, RedSol carries out the knowledge investment for many little organizations institutionally too weak to learn about insurance and to negotiate with companies. On the other hand, it offers an economy of scale to insurers that are attracted by the rural market they are not familiar with. Negotiations on product characteristics and prices are well balanced because power is shared between the different stakeholders. The structure facilitates the direct participation of the local organizations in the decision-making process.
The integration events that RedSol organizes for its members and partners generates an identity amongst the institutions and its field staff, of being part of a distribution network. In addition valuable information from the field, allows for the exchange of best practices to help RedSol operate more efficiently.The event organized in Huatulco (Mexican beach destination) serves as motivation for the final operators of the microinsurance distribution network. The exchange of information and experiences between operators of different organizations helps identify of best practices in the distribution of microinsurance, as well as solutions for local problems faced by organizations in their activities. These events are an opportunity to place the branding of RedSol, which creates a loyalty of organizations to work with the network, at two levels: (1) operators who want to distribute the products developed by RedSol, generating pressure for their organizations and (2) the institutions, for whom the event helps motivate its staff.
Synergies between the different organizations belonging to AMUCSS has increased the number of promoters of the business of RedSol. AMUCSS created two entities for two financial activities: RedSol for the distribution of microinsurance and Envios Confianza for remittances. An extended sales force that can collaborate to promote mutual activities with staff of the two organizations has been able to generate commercial activities. This has allowed RedSol to have better coverage of potential partners and give better services to partners.
Providing insurance products for the risk needs of the partner institutions can create loyalty. Originally it was intended to make RedSol work only as an insurance broker, however, the learning gained in the field of insurance has led the network to take other roles like offering insurance products to cover the risks faced by its partner institutions. RedSol is working with an insurance broker to provide additional insurance products such as: business insurance, car insurance, and life insurance for employees and directors. The partner institutions appreciate these services as added value to the pure distribution of microinsurance products.
Date of last Learning Journey update: October 2011