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.
Indicator
Dec 2010
Feb 2011
Net benefit ratio (net benefit / premiums collected)
62.5%
61.2%
Incurred expenses ratio (expenses incurred / premiums collected)
68.3%
70.5%
Incurred claims ratio (claims incurred / premiums collected)
0.0%
Renewal ratio (no. of effective renewals / no. of potential renewals)
46.2%
42.7%
Promptness of claims settlements
N/A
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)
7.3%
4.2%
Coverage ratio (no. of insured / total target population)
3.4%
3.7%
Solvency ratio (assets permitted / liabilities)
213.1%
244.8%
Liquidity ratio (available cash and equivalents / short-term liabilities)
323.1%
304.1%
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).