The Central American and Caribbean Microfinance Network (REDCAMIF in Spanish), with financing from the Inter-American Development Bank (IDB), is managing a regional project that aims at reducing the vulnerability of micro entrepreneurs and low income population in general in Central America.
To reach this goal, the project consists in the creation and implementation of a sustainable business model for the commercialization of microinsurance products and the strengthening of the regional market of insurance companies and microfinance institutions (MFI).
In this context, CAD and PlaNet Finance have been contracted to facilitate the staff of MFI, Local Networks and REDCAMIF with the basic knowledge, skills and tools for an effective financial education and the commercialization of microinsurances, with the aim to offer their clients products and services of high added value.
Financial education is a vital process for institutional development of the insurance sector in a region or country, which supports best practices in commercial and operational management, thus securing positive social and technical impact indicators for all actors involved.
Moreover, from the point of view of microinsurance consumers, it is a necessary condition for them to make understand terms and conditions of the insurance contract, and secondly, serves as a tool that can be used by the low income population in general to gain knowledge about risk management, for example prevention of accidents or material damages, and how to minimize and control these risks.
The capacity building program will be implemented during six months in six countries: Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama; and consists of three steps: In the first phase, CAD and PlaNet Finance will implement a training of 50 trainers in the whole region. In the second phase, the trainers, with support from CAD and PlaNet Finance, will train operational staff of participating MFI, the Local Networks and REDCAMIF. In the last phase, the trained staff will implement financial education workshops directed at microfinance clients.