Tale of an intermediary: customizing products and services through focused partnerships
As an intermediary between the insurance industry and a network of microfinance institutions, credit unions and cooperatives, RedSol knew that the only way to become sustainable was to reach scale. Since its inception, RedSol’s push was to grow from six members with 25 branches in 2006 to 74 members with 140 branches in 2010.
Over time RedSol observed that it needed to focus its efforts as it did not have the capacity to support all members with the same level of service, and it needed to concentrate on members with the most potential (16 out of 74 members generated 75 per cent of microinsurance sales). Plus, members had a need for different products and services. To improve the quality and efficiency of its services and meet the distinct needs of the members, RedSol developed an objective system to match the potential of each network member with the products and services that RedSol would provide. Members were scored based on the sales performance, conversion rate, potential scale, institutional capacity, range of financial services, staff turnover, governance structure, and financial stability of the organization.
Using this approach, RedSol narrowed its network to 60 members in 2012 and customized its product and services. For instance, it provides training on sales and institutional development to members with sales potential, but only provides training on mass marketing to members that offer only credit life. RedSol also worked with members to improve business processes. As a result, RedSol has seen greater satisfaction amongst its own members as they value the focused approach.
For more on RedSol, see the AMUCSS and RedSol Learning Journey.