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Seguros Futuro

About the Project
Project Name: 
Enhancing access to microinsurance among remittance recipients
Type of Facility Project: 
Innovation Grant
País de operaciones: 
El Salvador
Latin America and the Caribbean
Project Thematic Focus: 
Product design
Type of Risk Carrier: 
regulated insurance company
Type of Distribution Channel: 
Credit union, cooperative or other member-based financial institution
Project Description: 

The project has the following three objectives: a) To foster a risk management culture in families receiving remittances, principally through education about the use of savings and insurance; b) To introduce an economically accessible microinsurance product that responds to the needs of remittance recipients in the event of the death of the migrant worker; and c) To provide savings and loan cooperatives and MFIs with adequate instruments and processes for them to sell and service microinsurance for their members.

Click here to view the Product Description of Seguros Futuro (in Spanish). 


Seguros Futuro members are generally from the lower middle to low-income sectors in both urban and rural areas of El Salvador. The project beneficiaries are individuals who receive remittances that they withdraw from cooperatives or the service points of Seguros Futuro. On average, beneficiaries receive less than USD 300 per month in remittances from family members who have emigrated, mainly to the United States or Canada.

At the end of the three year period, between 10,000 and 15,000 people will benefit from insurance coverage and more than 15,000 additional people will receive education in risk management.

Lessons from the Project
Learning Agenda: 
  • To what extent do migrant workers and remittance recipients value the life insurance that is offered?
  • Is microinsurance a sustainable and adequate risk management tool for reducing vulnerability in the long term, throughout different stages in the economic cycle?
  • Will technology allow for a significant improvement in access (sales) and persistency (renewal) of microinsurance? Is technology a fundamental factor for increasing the effectiveness and efficiency in the service that the insurance company offers to its clients?
  • How effective is consumer education compared with traditional marketing approaches?
  • How can the insurer develop an effective supply process for microinsurance through cooperatives that offer financial services?
Emerging Lessons: 
  • The availability of cash makes it easier for remittance receivers to acquire insurance. 
  • The relationship between the sender and receiver of remittances influences household economic decisions. 
  • Rural Salvadoran families manage the risk of migration and dependency on remittances by sending various relatives abroad at the same time. 
  • Interactive and engaging approaches are necessary to impart financial education.
  • Personalized attention is key to building trust and providing microinsurance to previously uninsured populations.
  • Cross selling strategies are a challenge in cooperatives and on days with high client traffic. 
  • New types of life insurance require specially-tailored marketing and education efforts to distinguish them from existing products and raise interest.
  • Providing microinsurance to new populations requires extensive, highly motivated, and effectively deployed human resources.
  • Commissions, incentives, recognition, conviction—all are necessary to market microinsurance through cooperatives. 
  • A strong commitment at every level of management is vital to commercialize microinsurance in cooperatives. 
  • Efficient processes and servicing are key to retaining customer confidence. 
  • The brand of the cooperative must go before that of the insurer to gain confidence of potential insurance clients.
Key Performance Indicators: 



Dec 2010

Feb 2011

Net benefit ratio (net benefit / premiums collected)



Incurred expenses ratio (expenses incurred / premiums collected)



Incurred claims ratio (claims incurred / premiums collected)



Renewal ratio (no. of effective renewals / no. of potential renewals)



Promptness of claims settlements



Claims rejection ratio (no. of rejected claims  / total no. of claims received)



Growth ratio (no. of insured n less no. of insured n-1 / no. of insured n-1)



Coverage ratio (no. of insured / total target population)



Solvency ratio (assets permitted / liabilities)



Liquidity ratio (available cash and equivalents / short-term liabilities)



About the Organization
Tipo de vínculo con el Fondo: 
Innovation grantee
Country of Head Office: 
El Salvador
Region : 
Latin America and the Caribbean
Type of institution : 
Insurance industry
Participation in Microinsurance: 
Risk carrier
Organizational Overview: 

Seguros Futuro is the first and only cooperative insurance company in El Salvador - a member of the Federation of Savings and Credit Cooperatives (Fedecaces). The company was developed based on the strategic transformation of Fedecaces' life insurance department into a Cooperative for Insurance Services that started operating in 1996. The insurer's mission is to offer family and asset protection through accessible products, including microinsurance, and to promote the social development of its members.

The company is authorized by the Insurance Companies law and supervised by the Superintendencia del Sistema Financiero (the financial system regulatory body - SSF) and the Salvadorian Institute of Cooperative Promotion (INSAFOCOOP). Seguros Futuro receives technical assistance from the Cooperative Society for International Development (SOCODEVI) and is a member of several international associations including: the Americas Association of Cooperative/Mutual Insurance Societies (AAC/MIS), the International Cooperative and Mutual Insurance Federation (ICMIF), and the Latin American Group of Reinsurers (LARG).

More about the Organization