Case Study

MAFUCECTO, Togo

Has reorganization helped provide insurance products to credit cooperatives network in Togo?
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FUCEC-Togo is an apex organization for most savings and credit cooperatives (COOPECs) in Togo with a nation-wide coverage. This paper provides a case study on reorganization of MAFUCEC-Togo, the FUCEC insurance mutual, and the introduction and testing of new products and procedures.The study begins with providing an overview of the status of microinsurance in Togo including the role of the State, regulation and supervision and the government social security programs.Further, it provides the following details on the reengineering of MAFUCECTO:

  • The institutional players - FUCEC Togo, savings and credit cooperatives of Togo, MAFUCECTO insurance mutual;
  • Analysis of the target market - the social economic and geographical conditions, and risk and coping strategies of people;
  • Product development - development of concept, product design, pilot testing, roll-out, product revision and testing;
  • Operating system - Details of the (loan insurance) product, channels, processes involved.

The case identifies the salient results of MAFUCECTO reorganization as follows:

  • Strengthening of the MIS;
  • Overachievement of operating results;
  • Satisfactory financial results;
  • Laying down of procedures for formulation of actuarial reserves.

Finally, the study concludes with outlining the following lessons learnt and conditions of success during the testing and deployment phase:

  • Proper integration and joint existence of financial intermediation and insurance at all levels of intervention in the network (from COOPECS to MAFUCECTO);
  • A firm commitment of apex organization (FUCEC-Togo) and the COOPECS;
  • Clear role sharing and appropriate remuneration among various stakeholders;
  • Judicious choice of place and time for the test;
  • Establishment and completion of an adapted implementation plan;
  • Regularly scheduled and strict monitoring and follow-up;
  • Development of complete range of management and administrative tools prior to testing;
  • The knowledge of cultural differences to avoid errors and save time;
  • Suitable training program adapted for each actor before implementation.

About this Publication

By Tremblay, C., Quirion, M., Langlois, S. & Klutse, F.
Published