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Seguro Mi Familia Municipal -- Protecta Compañía de Seguros

About the Project

Project Name: Seguro Mi Familia Municipal -- Protecta Compañía de Seguros
Type of Facility Project: Microinsurance innovation grantee
Country of Operation: Peru
Region: Latin America and the Caribbean
Sub Topics: Other channels, Renewals, Enrollment, Sales, Promotion, Partnerships, Consumer education, Life
Type of Risk Carrier: Regulated insurance company
Type of Distribution Channel: Government networks

Organizational Overview

Protecta Compañía de Seguros S.A. (Protecta Insurance Company), one of the first insurance companies in Peru to enter the insurance market with the purpose of serving small scale entrepreneurs and low-income families, started its activities in January 2008. The ACP Group is Protecta's main shareholder and is also the main shareholder of Mibanco, Peru's leading specialized microfinance bank. Protecta's main product lines include: credit life insurance and life insurance for the spouses of microentrepreneurs. Protecta attracted the interest of the International Financial Corporation (IFC), affiliated with the World Bank, and in December 2008 the IFC became a shareholder of Protecta with 16.5% of the shares. With more than half a million lives covered already, the company aims to transform the insurance market in Peru and become a microinsurance leader in Latin America, just as MiBanco has achieved in the microfinance sector.


Project Description

The Project 'Seguro Mi Familia Municipal Protecta' intends to implement a model that will enable the low-income population to respond to one of their most sensitive risks, by providing access to life insurance offered through the municipalities in the metropolitan area of Lima. This model will temporarily substitute the income lost by families at the time of death of the head of the household, so as to provide for the immediate needs of the family. The model is based on an analysis of lifesty...READ MORE


The beneficiaries are low-income people who own their homes, either totally or partially. As homeowners they are tax payers to the local municipality. The target population is made up of self-employed families, most of them microentrepreneurs, who are excluded from a number of services: health and home insurance, access to pension schemes and access to insurance in general. Clients have been excluded from these services in part because they do not have legal documentation that legitimates their property ownership and they work in the informal economy with irregular incomes. The objective in implementing this insurance model is to satisfy the need for social protection for approximately 280,000 persons.


Learning Agenda

At the completion of the project Seguro Mi Familia Municipal, we will be able to collect information relevant to the following questions:

  • Can local governments be an active agent in the distribution of insurance?
  • Will the Protecta card be valued as a benefit by the population so as to enable a sustainable insurance product and maintain take up rates?
  • Can "insurance with a social mission" be a mechanism for spreading an insurance culture?
  • Will the clients of the sector gain a better understanding and knowledge of this type of insurance?
  • Is it viable for insurance companies to offer "insurance with a social mission" over the long term to the least advantaged sectors?
  • How do the populations of low-income districts perceive microinsurance? What is their perception of insurance companies?
  • Will the local government be able to offer good customer service, making use of the processes and tools of the insurance company designed for this end, and therefore satisfy the expectations of the population?

Project Status

Key Performance Indicators

 The following performance indicators were part of the report delivered in June 2010.



Net benefit ratio (net benefit / premiums collected)


Incurred expenses ratio (expenses incurred / premiums collected)


Incurred claims ratio (claims incurred / premiums collected)

4.9% (*)

Renewal ratio (no. of effective renewals / no. of potential renewals)

Not available

Promptness of claims settlements

9 days

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)


Coverage ratio (no. of insured / total target population)


Solvency ratio (assets permitted / liabilities)

1.7 times

Liquidity ratio (available cash and equivalents / short-term liabilities)

3.35 times

(*)Note – These indicators refer to the period January – June 2010, the period that corresponds with the implementation of the project. For the month of December 2010  (close of the year 2010), a loss ratio of 30% has been estimated.

However, it is expected that for the following 12 months (year 2011), the loss ratio will be on average 40%, given the greater exposure.

Project Updates
May 2010 Protecta started approaching different municipalities in Lima in order to start the distribution of a life insurance product linked to the payment of municipal services (taxes). In the first stage, the main elements of an operational management model were implemented to enable communication with the municipalities. Also defined were the operational procedures for the management of the insurance product, with a special emphasis on those that involve active participation from the munic...READ MORE

Project Lessons

On the microinsurance product The non-financial component of the product, such as the Protecta Card, which offers additional and tangible benefits, allows for better access to the target population and is an attraction for the municipalities. The Protecta Benefits Plan allows for taxpayers that have the insurance plan to access discounts and preferential tariffs in affiliated centres by simply presenting the Protecta Card. This benefit extends to the spouse ...READ MORE
On the distribution channel The ability of the distribution channel (in this case the municipality) to manage insurance projects depends on the level of operational management in each municipality, and determines the need for additional resources at the start of operations. It has been a challenge to issue insurance certificates without being able to count on a support system from the agent, as had initially been defined. This has meant that additional ...READ MORE
On financial education and commercialization It is necessary to measure the impact of the education and the culture of insurance programme during the pilot so that the implementation, when the project is scaled up, can be carried out with the best possible strategy. Initially Protecta had planned a generalised culture of insurance campaign, in various municipalities where citizens had insurance. While defining the contents and intensity of the campaign it wa...READ MORE
On technology and operational processes The technology used by the insurer to provide support for microinsurance products, such as Mi Familia Municipal, needed adjustments, as did the municipality systems. The technology that the insurer used to support the Mi Familia Municipal Model needed some adjustments, including the design and implementation of a support system for the municipalities. Currently this support is offered through the company's existing sys...READ MORE
On the administration and management of the project An integrated management model allows the organization to have greater control over the implementation of the project, and to proactively respond to the needs of the project. The project management style allows for a full integration of the different areas. Those responsible for each area, together with general management, plan every step of the implementation, so that no one team develops the project. In o...READ MORE
Date of last update:  October 2011