REPORT ON THE FIRST MEETING ON MICRO INSURANCE

The meeting took on the 18 June 2013 in the conference room of the CIDR office in Bastos., with
the main objective being the familiarize with the contact of the persons involved with Microlead
and to examine the way forward for the implementation of the micro insurance product in the
network of CVECA within the framework of Microlead project

In attendance were five people namely;

Mr. YANA Andre , Administrateur Tresorier de MIFED

Mr. Simon Yon TJEGA, DG de MIFED
Mr. CHANDRAMOULI , Long term technical advisor, Microlead
Mr. Luc Roger NGAN KOTOCK, Cadre de la direction General NSIA Vie Cameroun
Ms. Fri Asanga, MIFED

After presentation of the participants, the Director of MIFED explained the context in which the
micro insurance aspect of Microlead project wishes to be integrated in the current partnership
agreement between NSIA and A3C for the commercialization of an insurance product
ASSORIQUES in the network of A3C region, thus Assorique will be one of the products to be
improved upon.

A brief presentation of the product Assorisque was made highlighting the fact that the
product was developed after a field research to identify the needs of the population in order to
permit Mr. Chandramouli have a idea of the product.

He reacted by stating that the most important aspect with Assorisque is to adapt it to the
realities of the rural area.

Mr Yana went further to explain the philosophy behind the insurance in CVECA stating that the
main preoccupation was that members of these CVECA should be able to work in security with
respect to both their activities and their health. He further stated that it is a multi risk insurance
policy taking care of hospitalisation, death, maternity, surgery as well as funeral rites just to
name a few.

He went further to explain that much work was done before inception of the product in the
field and at the administrative level measures has been put in place to vulgarize the product for
example each member benefiting from a loan must subscribe to the insurance premium, yet
implementation is still lacking, but with the advent of this international partnership there is
hope that the objective so the product will be attained.

Mr. Ngan Kotock on his part explained that in Cameroon there are 2 main insurance sub
sectors: accident & sundry risk as well as life insurance. He reiterated the importance of
mastering the field in the practice of rural micro insurance and stated the advantage NSIA has
with experience gathered from 17 different countries. On a personal note his past experience in

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finance and presenting in insurance is a double advantage to the partnership. He restated the
importance to modify the current product and stated his openness and willingness to work
together with the team to achieve a common goal, highlighting the fact that the ultimate goal is
to extend bank insurance products to the rural areas.

Mr. Chandramouli highlighted a few points based on his experience is micro insurance as
follows;

- Loan linked micro insurance is a short term measure because in the long run, after about
4 loan cycles, members state feeling the double burden of the insurance premium and
interest on the loan. To this he suggested that insurance should be voluntary and
members should rather be sensitized on the important of micro insurance;
- Insurance is beneficial both to the CVECA and the member: to the MFI it covers the risk
it takes with its members and to the members it covers the risk they take in carrying out
their activities as well as their health risk.
- In response to the above mentioned risks, he proposed that two separate types of
insurance could be developed: the first one for the CVECAs (group insurance)
according to their size and volume of activities and the second policy for members
(individual). Nonetheless Mr. Yanas reacted was that the group model does not
stimulate members of the CVECAs to carry out an Income Generating Activity which is
the ultimate goal.

Mr. Chandramouli concluded that before deciding on the way forward, and to be able to
program activities for micro insurance, he needs a better understanding of Assorisque and
the general framework of operation of the micro micro insurance program with A3C.
He requested the following documents:
- Feasibility study reports;
- Insurance products of NSIA;
- Regulations of the insurance sector in Cameroon;
- Documents required for claims;
- Procedures for modification of insurance products at NSIA;
- Procedures to follow for modification of documents;
- Convention of collaboration between MIFED/A3C and NSIA
- Convention with health centres

The meeting ended with the conclusion that a second meeting for programming will be
organized 15 to 20 days after reception of all documents requested by Microlead.