Local Training Providers for Microinsurance Capacity Building

Transcription

1 Synthesis Paper Local Training Providers for Microinsurance Capacity Building An experienced-based study of: Cenfri, Instituto Nacional de Seguros, Microfinance Centre, and other local training providers (LTPs) by Gaby Ramm Tom Roos Oliver Ullrich

2 Acknowledgements We would like to thank the Microinsurance Network for making this study possible. Special thanks go to Véronique Faber, Julia Graham and Manoj Pandey of the Microinsurance Network for their support. We also thank David Saunders and Catherine Denoon-Stevens of Cenfri, Jose Fernando Zarta of the Instituto Nacional de Seguros, Aldona Rutkowska of the Microfinance Centre, Premasis Mukherjee of MicroSave, Chhorn Sao and Isabell Halletz of SHPA for sharing their experiences and contributing to this paper. Valuable inputs and comments were provided by Ralf Radermacher, Antonis Malagardis, Dante Portula and Rupalee Ruchismita. Gaby Ramm Oliver Ullrich Tom Roos The publication is protected by the law from the 18 th April 2001 of the Grand-Duchy of Luxembourg concerning copyright databases and related laws. It is strictly prohibited to reproduce an article from this publication, in whole or in part, without the written consent of the publisher by Microinsurance Network. All rights reserved. ISBN The Microinsurance Network is kindly supported by the Luxembourgish Government. Disclaimer: The views, opinions and theories as contained herein are solely the views, opinions and theories of the authors and do not necessarily reflect the views, opinions and theories of the Microinsurance Network, its members and/or its affiliated institutions. The Microinsurance Network makes no representation as to the accuracy, completeness, or reliability of any information, views, opinions, and theories as may be contained herein. The Microinsurance Network hereby disclaims any liability with regards to this.

3 Table of contents 1 Introduction Lessons learned: A summary Cenfri, South Africa Instituto Nacional de Seguros (INS), Colombia Microfinance Centre (MFC), Poland Consolidated experiences from other local training providers (LTPs) List of tables Table 1: Overview of Cenfri training content. Source: Cenfri Table 2: Overview of INS Discount Policy. Source: INS Table 3: Overview of MFC Discount Policy. Source: MFC Table 4: Overview experiences from other LTPs - Overview. Source: Own List of figures Figure 1: The evolution of microinsurance business strategies and the focus of Cenfri Microinsurance training Figure 2: Adult learning methodology tools employed by Cenfri List of Acronyms AIO BMZ CBHI CBWG Cenfri CGAP Fasecolda FSP GRET IFC ILO INS IRA LTP MFC MIA MIS SHPA ToT USB-ED African Insurance Organisation German Federal Ministry for Economic Cooperation and Development Community-based health insurance Capacity Building Working Group Center for Financial Regulation and Inclusion Consultative Group to Assist the Poor Federación de Aseguradores Colombianos /Insurance Association Colombia Financial Service Provider Groupe de Recherches et d'echanges Technologiques International Finance Corporation International Labour Organization Instituto National de Seguros Insurance Regulatory Authority of Kenya Local-level training provider Microfinance Centre Micro Insurance Academy Management Information System Social Health Protection Association Training of Trainers University of Stellenbosch Executive Education 1

4 1 INTRODUCTION Although microinsurance is increasingly recognised as a risk mitigation tool, coverage remains relatively low. One of the many reasons for this is the lack of appropriate knowledge and skills among microinsurance practitioners to accurately address the needs of a large number of lowincome people. To help microinsurance practitioners achieve maximum impact and shorten their learning curve, lessons learned and best practices need to be proactively disseminated, and relevant training tools and other broader capacity building mechanisms need to be made available. Focusing on the development of capacity building services, rather than providing direct support to specific microinsurance practitioners, contributes to building overall sustainable and inclusive financial markets 1. Local training providers (LTPs) are particularly well-positioned to facilitate the adoption of best practices because of their knowledge of the local context and ability to establish close relationships with local microinsurance practitioners. However, today there are only a few LTPs around the world offering microinsurance capacity building services. Those that do may not always have the training content or necessary teaching expertise to provide the kind of training demanded or required by market participants. To support LTPs in providing high-quality, sustainable microinsurance training, the Capacity Building Working Group (CBWG) of the Microinsurance Network and the ILO s Impact Insurance Facility developed a concept paper on how microinsurance training material can be developed and maintained, how training can be effectively delivered, and analysed how LTPs can operate most sustainably. 2 This synthesis paper complements the Microinsurance Network s concept paper with a number of case studies from Central Asia (conducted by the Microfinance Centre), Africa (Cenfri), Latin America (Instituto National de Seguros), and consolidated experiences from several other LTPs. Together they reflect different institutional structures and provide an insightful overview of training activities in a diverse range of markets. In so doing, this study contributes to the market development approach outlined in the recent CGAP publication Facilitating the Market for Capacity Building Services and helps answer the question: What does it take to facilitate a sustainable, commercially viable market for capacity building services delivered to financial service providers 3? 1 El-Zoghbi, M., Lauer, K Facilitating the Market for Capacity Building Services. Focus Note 97. Washington, D.C.: CGAP, August 2 Ibid 3 Ibid 2

5 2 LESSONS LEARNED: A SUMMARY This paper does not claim to offer a conclusive answer to the question posed but rather aims to help both LTPs and potential funders interested in strengthening microinsurance capacity building services to address crucial aspects of sustainable microinsurance training. While each market and each training provider is unique, the question of training content, delivery and sustainable business model were of particular importance to all the LTPs we interviewed for this case study. 2.1 Content MAIN LESSONS Needs assessment is important for meeting market demand by tailoring trainings specifically to the demand of participants and the local environment. High-quality course content and training material that is regularly updated is a strong pull factor for training participants. A good training programme should combine recent theory with relevant practical experience. A successful microinsurance training programme will incorporate existing material and fill knowledge gaps with new content from the latest experiences to help microinsurance providers avoid repeating common mistakes and develop best practice for their market. To achieve this, microinsurance training programmes require the combination of good content and good delivery. Given the need to increase penetration, a successful microinsurance training programme must also be able to reach a large number of stakeholders as quickly as possible. 4 The potential audience for microinsurance training programmes is diverse, both in terms of background and training needs. The training content needs to accommodate the needs of varying target groups, including insurance professionals, policy makers, civil society organisations and regulators. Training content may range from technical know-how to more general content on working with low-income markets. All case studies emphasised the relevance of high-quality training content that is regularly updated and customised to the participants and their environment. In order to achieve and maintain such high quality, it is important to conduct needs assessments before and carry out evaluations after the trainings or other forms of technical assistance. The following issues highlight some key elements of high-quality training content: Needs assessment: Market information is paramount; Information on FSPs, trends in financial services, and gaps in service delivery are all important dimensions in helping capacity building service providers recognise the potential of a market where their services can be further developed. 5 The LTPs covered in this case study differ in their mechanism to obtain information on training demand. The Instituto National de Seguros (INS), which provides training for employees of the Colombian insurance industry, benefits from its close cooperation with the insurance industry association, Fasecolda, and can thereby easily identify the training needs of 4 G. Ramm, M. Yang, C. Frankiewicz, C. Stevens; Enabling Quality Microinsurance Training with Local Service Providers Concept Paper; ILO Microinsurance Innovation Facility & Microinsurance Network; Geneva/Luxembourg June El-Zoghbi, M., Lauer, K Facilitating the Market for Capacity Building Services. Focus Note 97. Washington, D.C.: CGAP, August 3

6 insurance companies. The Microfinance Centre (MFC) follows a very structured but timeconsuming process by conducting surveys with both its members and non-member organisations to assess demand. In addition, a detailed training needs assessment reveals the weaknesses of each institution and should be further discussed with the management and addressed during the training. Cenfri is continuously expanding its knowledge base on the training needs through pre-training assessments, experiences with the participants during the programme and post-training surveys. This has allowed for incremental adjustments to the programme from a demand-side perspective. High-quality and regularly updated training content: The INS develops its own courses with and for the insurance industry. Other LTPs, for example the MFC, specifically integrate and build on updated material from organisations such as the ILO, CGAP, the Frankfurt School of Finance & Management, IFC and local universities. These materials are often adapted to local conditions or complemented by local case studies or input from regional experts. Using training materials from reputable organisations increases the recognition of the courses, assuming the content is high-quality and relevant to the specific audience (although supplements to provide local context are often needed). However, LTPs also develop training material on their own and/or link programme development with ongoing research activity hence mutually re-enforcing one another, as in the case of Cenfri. In situations where training providers may lack the knowledge or expertise required to develop training materials, funders may want to invest in creating curricula 6. It is important that curricula are publically available, as such support for only one firm risks distorting the market, reducing providers incentives to develop materials, and unfairly eliminating market players. 7 Feedback and evaluation: All LTPs surveyed evaluate their training programmes immediately after the completion of the courses and use a standardised format to collect participant feedback. In addition, a number of other learning and evaluation mechanisms are applied; these range from an institutionalised linkage between research and content development (e.g. Cenfri) to more informal discussions or interviews with training participants. These mechanisms help to adjust training materials and course delivery and react to market demand. While all training institutes evaluate the output of their training in one form or another, measuring the overall impact of the training and its application into practice is still an exception. MFC initially had a comprehensive evaluation process including an impact assessment but could not continue this practice as it was too costly and time-consuming to carry out on a regular basis. SHPA is working on ensuring the applicability of the training in the daily work routine by conducting follow-up trainings. Combination of theory and practice: All LTPs covered in these case studies emphasise the value of drawing on practical experience including case studies and real life solutions. For example, Cenfri, as a think-tank, complements its robust theoretical knowledge with practical insights by having practitioners with specific subject experience contribute to its trainings. Another example is the approach taken by the INS. All trainings are delivered by professionals from the insurance industry, who combine relevant theory with their own experiences from the insurance companies they work for. 6 Ibid 7 Ibid 4

7 2.2 Delivery MAIN LESSONS Combination of classroom training and exposure to practical experience is ideal. The capabilities of the teacher are paramount; investing in human resources through special Training of Trainers (ToTs) is crucial. Successful trainers combine relevant practical experience with state of the art teaching skills. Issuing training certificates is important and helps to attract training participants. Practitioners from different cultural and professional backgrounds learn in different ways and have vastly different time and financial resources available for training participation. A one-size-fits-all approach is, therefore, no solution to achieving lasting impact; training style and delivery needs to be flexible enough to take into account the particular needs and preferences of participants. Recognising that training is by nature limited in scope, it should ideally be embedded into and supported by other capacity building mechanisms to fully achieve its objectives and reinforce newly acquired skills and knowledge: Combination of theory-based classroom training and hands-on experience: Not only should the content reflect theory and practice, the training methodologies should also combine classroom training and practical experience. LTPs recognise the inherent value of such an approach and often include local case studies in their learning materials (Cenfri, MFC) or make use of teachers who are already experienced professionals (INS). Such contact with practitioners and exposure visits to explore market realities can be very effective and the LTPs contributing to this study are strongly convinced of the value added. Peer-to-peer learning can further help to engage with the subject matter and simultaneously allow the development of professional networks among training participants. Investment in human resources: Even if the training content itself is of high quality, poor delivery can significantly impact the outcome of the training. Technical experts are not always able to convey content effectively and the appropriate mix of methodologies requires trainingof-trainers (ToTs). To ensure quality delivery, MFC trainers are extensively prepared and are certified in adult learning methods by CGAP, ILO, Imp-Act Consortium and MicroSave before conducting trainings. Junior trainers work under the supervision of master trainers who also assess them. Internally organised training-of-trainers allows a team of regional trainers to keep up to date with the latest training methodology and share their knowledge with their peers. The INS emphasises the development of future lead trainers. Its trainers from insurance companies have the technical knowledge and practical experience but may lack relevant didactic skills. To ensure the development of able trainers, the INS encourages students to act as co-trainers of already experienced trainers (to gain relevant on-the-job experience). Certification: All LTPs highlight the importance of training certificates for participants - even if it is not a formally certified training. The training recognition is generally higher when certified materials from recognised institutions are used (e.g. in the case of the MFC), guaranteeing the quality of the training material and signalling a high standard of training. The same applies to the quality of training methodologies, such as when trainers have been educated by renowned institutions (either international institutions or chartered local organisations such as universities). As a trend, it may be concluded that the more the training is used in the context of formal education or for obtaining formal qualifications (e.g. registered agent), the more important the certification becomes. 5

8 2.3 Sustainable business models MAIN LESSONS Development of business plans (including marketing strategies) is essential. Partnerships offer possibilities and advantages to achieve sustainable business models. Strategies needs to be adjusted in the face of a changing market environment. Achieving lasting financial sustainability can be a major challenge for LTPs. Often, training providers are confronted with microinsurance practitioners that are unable or unwilling to pay for capacity building services. In such cases, external funders can temporarily provide subsidies to either the microinsurance practitioner or the training provider. El-Zoghbi and Lauer note that funding a [training] provider is a surer means of getting the provider to improve the quality of its services as improved services will lead to increased demand and business for the training provider. 8 However, subsidies should never be the basis of a long-term business model of any LTP. Too many training institutions have built up operations with donor support only to collapse when this assistance is withdrawn. Any microinsurance training programme with the objective of continuously supporting practitioners in putting knowledge into practice should approach sustainability through a planned and gradual process. Whilst the INS and the MFC either fully cover their training costs through participant training fees or receive minimal external support, many other LTPs rely on different types of external support to carry out their training activities, though the amounts differ significantly. This external support may come in the form of: Direct funding Providing scholarships for participants In-kind support through e.g. training material, provision of complimentary training venue Aside from donor support, each LTP has other means of income, such as membership fees of their member organisations (e.g. MFC), participant training fees, consultancy fees, or cost and profit sharing for joint training courses with international institutions. The following elements are critical to achieving financial sustainability: Develop and use a business plan: The INS and the MFC develop an annual business plan and monitor its implementation strictly. It includes marketing strategies that maximise cost-effective outreach to participants (e.g. announcements placed on the websites of partner organisations, social media, and information dissemination, followed by personal calls). The INS updates its client database on a daily basis and stays in regular contact with potential clients. The INS and the MFC offer discounts to attract participants, e.g. for number of participants sent by organisations, early registration and payment, repeat participation in training courses. Not every LTP benefits from a captured market in the way the INS does with its natural partner FASECOLDA, with whom they jointly develop training courses, recruit trainers and have sufficient participants for the Colombian insurance market. Many LTPs rely on developing and regularly adjusting strategies in order to respond to changing market environments and market demands. 8 El-Zoghbi, M., Lauer, K Facilitating the Market for Capacity Building Services. Focus Note 97. Washington, D.C.: CGAP, August 6

9 Partnerships: All LTPs recognised the importance of partnerships both formalised long-term agreements and short-term, ad-hoc means of cooperation. In general, partnerships can help leverage expertise outside of the LTPs core competencies. Partnerships can take a wide variety of forms, such as: - Strategic partnerships with accredited universities (Cenfri, INS) - Cooperation with international organisations in order to, for example, receive highquality content or jointly develop training materials (MFC, Cenfri). - Local support from key stakeholders such as insurance associations or supervisors to ensure that the content and delivery is appropriate (INS, Cenfri). Flexibility to respond to changing market environments: The microinsurance sector has evolved significantly in recent years and market environments have changed. This has implications for the training demand, stakeholders involved, training participants and potential delivery mechanisms such as e-learning. While the INS has a symbiotic relationship with the insurance association, as their key training partner, other LTPs operate in more volatile markets: - Many of the MFC s older members have developed in-house training capabilities or utilise other, newly emerged local professional services, which increases competition and adversely affects the demand for MFC s services a development not only related to microinsurance but capacity development in general. This has forced the MFC to diversify its income base by moving beyond the provision of training courses to create a broader technical assistance unit to generate profits (e.g. developing new materials and delivery methods, establishing a platform for local and regional training providers as a source for knowledge and exchange of experiences). - Cenfri began to expand its focus beyond South Africa to include Southern Africa and some countries in Latin America and Asia. They further extended their initial target market to include new market players such as mobile network operators (MNOs), retailers and technology providers that are interested in serving the low-income population. The following input from the Microinsurance Network s Capacity Building Work Group would be useful for LTPs: Sources, e.g. tool inventory, creating a central training programme platform containing up-todate case studies relevant to the theme of the module, standardised materials (which can be adopted by LTPs) Tips for making global content relevant to a local environment Access to practical examples that can be used to illustrate concepts or tools that may be difficult to understand in some cultures or contexts Ideas for probing concepts or tools in greater depth with audiences that move quickly through the standard material and require an additional challenge Guidance for prioritising the activities in a training curriculum for a particular audience Post-training support that enables the exchange of experiences for practitioners implementing the newly acquired skills in real-life scenarios A glossary for translating the material into another language 7

10 3 CENFRI Cenfri was established in 2008 as a non-profit think tank registered in South Africa with support from FinMark Trust. Its mission is to support the development of an inclusive financial sector through facilitating better regulation and market provision of financial services. Cenfri aims to achieve this objective by developing an evidence base to inform decision-making at local, regional and global levels. It focuses on five areas of work that include: anti-money laundering and countering financing of terrorism legislation, new technologies in distribution, remittances, health financing and microinsurance. To date, a significant portion of Cenfri s research has been in the area of microinsurance. Research has focused on identifying barriers to insurance market development, exploring business model innovations in microinsurance, and understanding low-income financial behaviour. Cenfri is based in South Africa, but its geographic focus includes Africa, select countries in Latin America and an increasing portfolio in Asia. Cenfri s activities include conducting high-quality research, providing advice and developing capacity building programmes. Capacity building has always been part of Cenfri s activities since it was established in 2008 and has been refined over time with a focus on generating impact in the financial inclusion space. Cenfri s capacity building activities make use of partnerships with individuals and institutions to increase the potential impact by (i) ensuring the quality and appropriateness of its content, (ii) identifying adult learning methodologies and providing faculty with deep knowledge for delivery and (iii) supporting a sustainable business model. The following are the key training partners to date that influence the content, delivery and business model of Cenfri s capacity building activities: University of Stellenbosch Business School Executive Development (USB-ED). Cenfri has a teaming agreement with USB-ED and has partnered with them for the programme in Microinsurance Business Strategies for African Markets in 2011, 2012 and 2013, as well as the programme for National Payment Systems in 2012, 2013 and This partnership provides Cenfri with two necessary components for a programme: (i) certification for the participants and (ii) physical, informational and administrative infrastructure. USB-ED provides the back-end infrastructure for enrolment, printing facilities for the full compilation of sponsor and USB-ED branded course materials and physical infrastructure through their footprint in Africa. A university project manager works alongside Cenfri to coordinate these processes. The ILO s Impact Insurance Facility. Cenfri is the official training partner of the ILO s Impact Insurance Facility in South Africa and Southern Africa. Cenfri and the ILO s Impact Insurance Facility have partnered for the development and delivery of three full executive education-level programmes on Microinsurance Business Strategies for African Markets with the University of Stellenbosch s Business School Executive Development (USB-ED) in July 2011, July 2012 and April Regional and local insurance supervisors and associations. Cenfri partners with key countrystakeholders to ensure that the programme content and delivery is appropriate. To date, Cenfri has partnered with the South African Financial Services Board (FSB), the African Insurance Organization (AIO) and the Insurance Regulatory Authority of Kenya (IRA). 8

11 The training target market includes: Risk carriers: middle to executive-level managers from banking and insurance professionals with a business development focus in Africa Policy makers and regulators interested in understanding microinsurance business dynamics in Africa Market players such as mobile network operators, retailers and technology providers interested in expanding their reach into low-income financial services Consultants, expert advisors and researchers in the areas of microinsurance or low-income financial services These decision-makers have been identified as having the greatest potential for impact and concurrently, the greatest need for capacity building to enhance their impact. 3.1 Content Training programmes Cenfri has provided inputs and/or acted as faculty in microinsurance-related capacity building programmes since In 2011, Cenfri took their capacity building activities further and in partnership with the University of Stellenbosch Business School Executive Development (USB-ED) established a joint training platform to offer a microinsurance-specific training programme. The programme in Microinsurance Business Strategies for African Markets aims to support microinsurance market development by exploring the prerequisites for developing a microinsurance business plan and the relevant regulatory context. The training aims to develop an understanding of the microinsurance market in terms of risk needs and preferences, as well as usage and access trends, the market environment with regard to relevant competitors and new regulation impacting upon microinsurance, and the capacity of the provider to conduct business in this market. Figure 1 below situates the programme within the industry s overall microinsurance market development process. It highlights that the programme is not designed to support product design and implementation, but rather to provide the prerequisite knowledge for designing a microinsurance business strategy and ideas for practitioners looking to operate in this new market. Prerequisites for entering the microinsurance market include understanding the market in terms of risk needs and preferences, as well as usage and access trends, the market environment with regards to relevant competitors and new regulation impacting upon microinsurance, and the capacity of the provider to conduct business in this market. If further support is needed, Cenfri acts as a broker to link participants with other technical assistance providers or their own innovation lab work s experts. 9

12 Figure 1: Situating Cenfri capacity building programmes within the overall microinsurance market development process. Source: Cenfri 2014 Training needs assessment Through its experience in conducting training programmes, Cenfri has built a knowledge base on the training needs of the participants through pre-training assessments, experiences with the participants during the programme and post-training surveys. This has allowed for programme adjustments based on input from the participants to tailor the programme more appropriately to their needs. For example, trainings have incorporated feedback from the participants that they would like demand-side insights from the countries they work in. Often these adjustments have been small, but by allowing for incremental learning, Cenfri has seen high impact in the form of improved positive results in the feedback from participants. Training material curriculum Cenfri s training programmes are certified by USB-ED and participants receive a certificate of completion for attending and passing the full course. Participants have indicated that this is a major advantage when pitching programme participation to their human resources departments. In addition, Cenfri is recognised as the official training partner of the ILO s Impact Insurance Facility in Africa. The partnership has led to the development of a core training curriculum consisting of 11 modules (see summary in Table 1 below). The entire curriculum can be delivered over the course of three and a half days. The modules form the basis of each Cenfri microinsurance training, but can be tailored to the particular client s needs and always incorporate the latest research available. 10

13 Table 1: Overview of Cenfri training content. Source: Cenfri 2014 Module Content Introduction Introduce results from the training needs assessment Clarify expectations on the training s offering and requirements Introduction to Microinsurance Microinsurance usage and needs trends in insert local context Innovation in Microinsurance Business Models Innovation in Microinsurance Business Models: Mobile Phone Session Trends and Standards in Microinsurance Regulation: What Business Needs to Know Assessing Market Opportunities and Understanding Client Behaviour/Needs Microinsurance Business in a Real-Life Setting Proving and Improving Business Value Propositions for Low-Income Clients Understanding Opportunities in Health Microinsurance Foundational concepts in microinsurance Key international trends in microinsurance development Overview of regional insurance trends Discussion on their implications on current business models. Innovation in business models for the efficient delivery of microinsurance products. Introduce the incentive for MNOs, insurers and consumers to adopt the mobile phone for insurance. New approaches to the regulation of microinsurance How can the private industry position itself to operate effectively within this dynamic environment Evidence on low-income financial behaviour emerging from insert local context. Tools that microinsurance practitioners can use to conduct market research and understand the needs of their target market. Experience through a visit to a low-income area in insert local context to expose participants to innovative distribution models in practice. Opportunity for participants to converse with low-income households to learn more about their financial needs and everyday realities. Collect data to apply the PACE Client Value tool and utilise concepts from understanding client behaviour to identifying opportunities to improving product and process design. Introduction to the Microinsurance Innovation Facility PACE Tool for product assessment that looks at the added value for clients from insurance products Reasons why we are failing to develop viable health microinsurance products Introduce the various typologies for health microinsurance schemes. 11

14 3.2 Delivery Training methodologies The training programme is designed to present microinsurance concepts to an executive-level audience. It aims to provide participants with a thorough understanding of microinsurance issues and business strategies for the African markets. The training is normally conducted over the course of three-and-a-half days and follows a set process of a) pre-reading provided upfront, b) in-person training delivered, and c) post training assignment (which is a requirement for the receipt of a certificate of completion). Figure 2 below highlights the following formats included in the programme delivery: Classroom and face-to-face learning Interactive and adult learning methodology Blended methodology through the inclusion of videos and teleconference interviews (e.g. as part of the on-site training). Immersion visit to a low-income context that aims to (i) expose participants to a real-life scenario and (ii) provide the opportunity to explore theoretical concepts in a real-life context. Figure 2: Adult learning methodology tools employed by Cenfri. Source: Cenfri 2014 Human resources Cenfri s activities are currently driven by 16 staff members and several associates, many of whom are directly engaged in Cenfri research. USB-ED provides a project manager to work alongside Cenfri to support the overall coordination and administration of the training. Cenfri complements its own research by working with external experts and institutions to provide input and present their current work in the training. Bringing in local practitioners as experts helps bridge the gap between research and practical application. 12

15 Evaluation and quality assurance The partnership with USB-ED provides certification of the quality of the content and delivery according to an internationally recognised benchmark. Cenfri further focuses on continuously improving the quality of and approach to its work in order to achieve the greatest possible impact. Since its inception, the Cenfri training programme continues to evolve to meet market needs. Cenfri uses two feedback loops at the capacity building and research levels to maintain high-quality training: The first feedback loop at the capacity building level feeds any insights on process, content and delivery back into the development process in order to ensure that the programmes delivered are appropriate and of high quality. The second feedback loop involves incorporating lessons from the capacity building programmes back into the core research work of Cenfri through elements such as identifying areas to update or produce new research on. This loop eventually feeds back into the training process when it results in new research insights that can be incorporated into the training. 3.3 Sustainable business model Cenfri is a not-for-profit organisation and seeks to generate impact beyond its own bottom-line. Cenfri aims to keep participant fees at a level that is appropriate for the target market, which has forced Cenfri to explore various approaches to developing a sustainable business model for training. Income generation Cenfri works with donors to develop high-quality research, but this does not systematically include dissemination through trainings, which were initially funded solely from participant s fees only. Due to Cenfri s driving ambition to deliver a high-quality training programme for microinsurance practitioners, this often resulted in Cenfri incurring additional costs beyond the revenue from participants. Given this experience, Cenfri has been testing a number of business models that includes a mix of participant fees, sponsorship (both direct and indirect), as well as direct assistance from partners and faculty: Sponsorship enables Cenfri to provide quality training at a price that is affordable to the target market that can have a high impact on microinsurance. Working within a developmental space means that executive-style programmes are often out of reach for those that might need it most and sponsorship can help overcome this hurdle. Sponsorship can take a variety of forms: - Direct sponsorship of the programme fees in the form of scholarships. For example, the African Insurance Organization (AIO) agreed to sponsor participants from the AIO s microinsurance working group executive committee. - Funding of elements of the programme that either (i) support the development profile of the donor or (ii) allow the opportunity to ensure particular elements of the programme are enhanced. For example, the ILO s Impact Insurance Facility covered the cost of developing a more robust demand-side module. Direct assistance from training partners and faculty looking to share their insights with a captive audience. - Training partners provide assistance by providing access to their networks for help with marketing or logistical organisation, as well as in-kind support where appropriate. For example, the insurance supervisors in Kenya and South Africa covered the cost of the venue and catering for certain training programmes. - Faculty in some cases will provide their services free of charge for the opportunity to share their insights with a captive audience. For example, Kilimo Salama in Kenya 13

16 provided direct assistance by sending a representative to share their emerging market insights from their work. 3.4 Lessons and recommendations The following are the lessons learned and recommendations from Cenfri s training experience to date. Critical success factors Content: Leverage high-quality research to supplement the training curriculum with modules relevant to the market. Participants want research that is relevant to their market to ensure appropriate action is being taken. Draw on practical experience from local practitioners for bridging the gap between research and practical application. Delivery: Give a face to insurance. The programme curriculum for Microinsurance Business Strategies pairs the classroom learning with an immersion visit to provide participants with a face to face experience of microinsurance realities. Building a knowledge base on the training needs of the participants through pre-training assessments, experiences with the participants during the programme and post-training surveys. This has allowed for adjustments to the programme to meet the expectations of participants. Peer-to-peer engagement among participants with different backgrounds proved particularly valuable when exploring new content. Sustainable business model: Apply a test-and-learn approach to the development of its business model for trainings. Despite due diligence and preparation ahead of each training programme, there will be unforeseen factors that can be learned from and considered in the design of the next training. The right participants are critical to a successful training, both to achieve intended impact and to facilitate the transfer of knowledge from the faculty to the participants and the valuable peer-topeer learning. Programmes benefited from a mix of participants with mixed professional backgrounds from different countries. Establish committed partnerships. Cenfri trainings do not occur as an individual undertaking, but rather as an activity spearheaded by Cenfri in partnership with a number of players to ensure that desired quality and impact are achieved by leveraging expertise outside of Cenfri s core competencies. Challenges and outlook Cutting edge training programme development with multiple stakeholders requires substantial coordination to ensure a cohesive output. With the value placed on partnerships, Cenfri trainings have involved between three and six stakeholders on average. This number of stakeholders means that it is important to establish regular communication with the different stakeholders and clearly define the roles and responsibilities of the different parties. Senior capacity is required for high-quality delivery. Given the nature of Cenfri trainings, it often relies on its more senior staff to deliver, due to both their knowledge and faculty skills. This puts pressure on the time of senior staff and makes it harder to scale-up. 14

17 4 INSTITUTO NACIONAL DE SEGUROS The Instituto National de Seguros (INS) 9 is a local training provider which operates mainly in Bogotá, Colombia. It was established in 1979 as a non-profit foundation and concentrates on providing capacity training for the insurance industry. Although the INS is an independent foundation, it has a strong relationship with Federación de Aseguradores Colombianos (Fasecolda), the Colombian federation of insurance companies. All insurance companies affiliated with Fasecolda are members of the INS 10. Fasecolda also holds a seat on the governing board of the INS. The cooperation of the two organisations assures that training programmes offered meet the needs of the employees of the insurance companies. Currently, there are eight employees in management and operations. The organisation also has service agreements with 80 teachers and trainers. The target market of the INS includes: Employees of insurance and reinsurance companies Management and operational staff of insurance intermediaries Public functionaries Policyholders of the financial sector In 2013, around 2500 participants took part in 80 training courses. Participants are required to already have a basic understanding, on which to build more advanced knowledge through training courses. 4.1 Content The INS is a general training institute for the insurance sector, which also conducts conferences and seminars on microinsurance. As the INS is not a specific training provider of microinsurance, this case study draws primarily on the experiences of general insurance educational programmes. Training programmes The INS programme participants are employees of the insurance companies and agents who sell insurance products. The INS offers various training courses, each lasting no longer than 100 hours. Occasionally it organises training courses and conferences, usually one day long, in other major Colombian cities. Participants are not issued with a certificate. The INS initially checks the training course content developed by the teacher. Based on the feedback of the students, the programmes can be adapted for future training courses. 9 In this paper we also refer to this organisation as the National Insurance Institute. 10 No membership fee is paid 15

18 The INS has no specific training programme on microinsurance, but microinsurance topics are covered in seminars and during conferences. INS training courses focus on: Product development (especially in health) Understanding demand Insurance operations Creating a value proposition Communicating the value proposition. Training needs assessment The content of the course must satisfy the training requirements of the participants. The technical and commercial departments of the insurance companies, in collaboration with their respective human resources departments, identify specific training needs. These are then communicated to the INS via Fasecolda. In addition, the INS receives feedback from participants and periodically engages with potential participants directly on their training needs. Training material The INS relies on its own material and neither produces formalised content nor uses other certified training material from third party providers. If certified educational materials were to be available, the INS would first need to examine their applicability. The teachers focus on the delivery of needsbased technical information and the sharing of their working experience, which proved to be most useful in the daily work of the training participants. The INS does not offer courses from any other training providers. 4.2 Delivery Training methodologies The INS conducts the training courses in its classrooms, at insurance companies, at universities and in other facilities. Training programmes are delivered in a classroom setting by means of seminars and workshops, and take place regularly. The content is based on the professional knowledge and experience of the trainer delivering the courses. INS trainers use the following teaching methodology: The trainers prepare the courses on specific insurance topics, most of them using PowerPoint as a delivery tool to meet pedagogic and didactic requirements. At the end of the course, the teacher evaluates the understanding of the fundamental concepts discussed in their presentation. No certificates are issued upon completion of the training. Human resources The INS employs eight staff members, including the director, an academic coordinator, a logistical assistant and a commercial assistant. In addition, the INS has a service agreement with 80 teachers who are not permanently employed by the National Insurance Institute. They are either employees of insurance providers and intermediary companies (including brokers) or topic-specific experts, and are highly motivated to deliver the training programmes. The trainers receive a fee from the INS for conducting the courses in addition to their regular income. The INS assesses the competency of the trainer by drawing on the evaluations done by participants (see details under Section 3.3). The INS ensures that teachers and trainers have the topic-specific technical knowledge and the pedagogic abilities required for the courses. Among the selection criteria is the professional 16

19 performance in the insurance companies where the trainers work. The INS also uses students as co-trainers who assist the master trainers. They receive a certificate which corresponds to a non-formal education certificate. Evaluation and quality assurance At the end of each training programme, the students evaluate the training according to the following aspects: Topics/content: Achievement of the objectives initially proposed, thematic content of the module, thematic sequence module, duration of module, clarity in the programme development Trainer and methodology: Speaker s knowledge, methodology and class environment (including resources and materials), clarity of presentation of topics, management and attitude towards the students Other aspects: For example, institutional environment (incl. accommodation and classrooms), services (i.e. attention to the students requirements and personal treatment) Suggestions: General comments 4.3 Sustainable business model Income generation The INS reviews its business plan annually. The INS is self-sustaining; the income generated by its own training activities is the only source of financing and is normally sufficient for covering all expenses (the INS occasionally receives financial support from Fasecolda when training fees do not cover expenses). Every year, the INS presents an income statement to their Board, taking into account the following factors: Number of training programmes Number of expected students Total direct and indirect costs of the training programmes The fees for the training programmes are in line with market rates. Participants have to pay the fee themselves but in almost 60% of the cases their employer refunds the costs. Marketing On-going activities ensure successful marketing. Most important is the database updated daily with relevant information (e.g. additional information of insurance companies, brokers, agents, teachers, students), and being in contact with a possible client. The INS also offers discounts in the specific cases. 17

20 Table 2: Overview of INS Discount Policy. Source: INS Modality Addressee/participants Percentage Prompt It is given to those natural persons who pay the total amount of the course 10% Payment with more than ten (10) calendar days of advance to the beginning date. Fidelity It is given to those natural persons or the same functionary of the legal 10% entity that has taken another course in the institute in the current year. Number of participants It is given to legal entities or business groups that enrol several people. The discount percentage varies, taking into account the number of people the entity enrols, as follows: Two (2) or three (3) people 5% Four (4) people 10% Five (5) people 15% More than five (5) people 20% Partnerships The INS has a close partnership with Fasecolda, which represents the private insurance companies in Colombia. The most important strengths of this partnership are: INS trainers are employees of the insurance companies that are members of Fasecolda. With Fasecolda as a partner, the INS has a target population that can be easily reached. Programmes and courses are tailored to the needs of the insurance companies. The INS is well-known among Fasecolda members and word of mouth amongst the members further increases awareness of INS training programmes. Additional benefits of the INS s cooperation with Fasecolda are: Fasecolda s members identify relevant experts that are then hired by the INS as trainers to deliver training programmes. Insurance companies suggest training topics that should be covered by the INS training. This results in needs-based training that is relevant to the Colombian insurance market. In addition, the INS has an agreement with the Politecnico Grancolombiano University, which specialises in administration, banking and insurance. Alongside its own programmes, the INS also promotes courses offered by the university and authorised by the government. In exchange for promoting the university s courses, the institute receives a fee. These formally certified courses complement the non-certified courses offered by the INS which have a strictly professional focus. 4.4 Lessons and recommendations Critical success factors Content: Provision of good training programmes that are dedicated to the needs of insurance professionals Detailed knowledge of its client market due to its close cooperation with the industry representative body Fasecolda Delivery: Service agreements with trainers who are mostly working in the insurance sector themselves and have the ability to pass on their knowledge 18