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Risks and insurance literacy -- FASECOLDA

About the Project

 
Project Name: Risks and insurance literacy -- FASECOLDA
Type of Facility Project: Microinsurance innovation grantee
Country of Operation: Colombia
Region: Latin America and the Caribbean
Sub Topics: Country experience, Consumer protection, Partnerships, Consumer education, Impact
Type of Risk Carrier: Regulated insurance company
 

Organizational Overview

FUNDASEG is the foundation of the Colombian insurance federation while FASECOLDA is a non profit organisation with 30 years of experience. The foundation has a social mission to overcome poverty in Colombia through education programmes directed at low-income people. FUNDASEG promotes and encourages the Colombian insurance sector to commit to the poorest sections of society. Its activities focus on developing skills and abilities in these communities through literacy and financial literacy programmes to allow low-income populations to improve their livelihoods and overcome poverty.

 

Project Description

In early 2009, Fasecolda, the Colombian Insurance Association, took the lead in implementing a risk and insurance literacy programme for adults. The programme was affiliated with cooperatives, insurance companies, microfinance organisations, banks, utilities and state-run social programmes. Fasecolda’s role is to centralise efforts and investments of companies within the sector to ensure that education programmes meet with quality standards and to convey a unified and homogenous message that i...READ MORE
 

Beneficiaries

In Colombia, 21 million people are living in poverty. These individuals have a far greater exposure to risk. When risks occur, informal credit remains the most commonly used method to cover the damage and related expense. The majority of low-income people are not aware of the range of available financial options that can be used to cope with emergencies. FUNDASEG's risks and insurance literacy programme targets low-income adults, preferably affiliated with cooperatives, NGOs, microfinance organisations, banks, public services or state-run social programmes. The intention is to link insurance companies offering microinsurance to these institutions so as to better meet the protection needs of low-income households. It is estimated that the programme will train 27,000 people through workshops, while through mass media (videos and printed media) it could reach 300,000 people.

 

Learning Agenda

The project seeks, at the outset, to answer the following questions:

  • Is financial education in risk and insurance an appropriate intervention, does it respond to both a need and a demand?
  • What are the benefits of financial education for the various actors involved in the programme?
  • Is the content of the risk and insurance literacy programme appropriate and sufficient?
  • Does the programme bring about changes in behaviour and perceptions of beneficiaries regarding risk and insurance? How can these changes be measured?
  • Which approach, or combination of approaches, is the most efficient way to deliver financial education? What are the pros and cons of each approach for changing behaviours?
  • Does the sustainability of an education programme necessarily depend on an alliance with the public sector? What alternatives could there be?

Project Status

Key Performance Indicators

 
 
Project Updates
As of October 2010 Fasecolda collected background data regarding the media preferences of the population and examined audience studies to identify mass media reach in Colombia. The association collected and analysed existing literature on international experiences of financial education programmes delivered through mass media. The idea was to understand the characteristics of each mass media method (TV and radio), identify the length, frequency and methodology to broadcast literacy programs, ...READ MORE

Project Lessons

On choosing a cost-effective media to disseminate financial education programmes to low income populations Radio was considered the best channel to use for the financial education campaign in Colombia. After a review of the academic literature, international experiences, production and broadcasting costs and media penetration in Colombia, Fasecolda considered radio to be the best media channel for the campaign. Whilst television has a wider reach, it is easi...READ MORE
 
 
On radio as a delivery channel Operational challenges make collaboration with community radios more complex, hence the choice to broadcast on commercial stations. To ensure that the majority of listeners were low-income people, community radio was initially considered. However, the media buyer that had been contracted, along with Fasecolda’s communications department, identified three problems with using community radio stations in Colombia. First, a numbe...READ MORE
 
 
On how to work with radio as a delivery channel The help of radio professionals is indispensable, but the main topics covered should always be decided by the insurance sector. Radio uses special formats that are outside the knowledge of the insurance industry. It is therefore essential to work closely with people who are familiar with this type of mass media, in order to make use of the many options that are available. However, it is still important that the...READ MORE
 
 
On choosing the appropriate radio broadcaster The following criteria were considered when selecting the radio stations to broadcast the financial education programme: The radio station had a large estimated audience, mostly composed of low and middle income people. The selected radio station could align with the programme’s educational goals and believed that the programme would bring added value to its audience. This was necessary to ensure the pa...READ MORE
 
 
On the creation of relevant content The education programme needs to start with what listeners know, and may therefore need to encompass a broad financial literacy approach. Content should be built on the audience’s existing frame of reference. For that reason, the campaign needs to create connections between the risk management strategies currently used by listeners and insurance. In the case of Colombia, Fasecolda realised that the financial education pr...READ MORE
 
 
On pre-recorded programmes and interaction Pre-recorded episodes reduce the costs of production and allow time to search for new broadcast opportunities. Pre-recorded episodes decrease costs of current and future emissions. Firstly, costs of current emissions are reduced because in one day of work the episodes for the whole week can be produced. Secondly, the cost of future emissions is cut because money will only be spent in hiring new air time. L...READ MORE
 
 
On identifying and implementing an evaluation methodology Monitoring can be done through audience estimation. Fasecolda monitored the campaign through a listenership survey (ECAR) that scans the audience of the different radio stations. At the end of the broadcast the audience was estimated to be over 290,000 people, 200,000 people over the initial estimate. In addition, the radio broadcaster recorded every episode in every city to prove that the progra...READ MORE
 
 
Date of last update:  March 2015