CGAP Working Group on Microinsurance Good and Bad Practices: Serviperu, Case Study No. 1

The implementation of structural adjustment measures undertaken in Peru in the early 1990s to achieve macroeconomic stability resulted in a revitalization of the financial system, including the emergence of new types of financial institutions like microfinance. However, the new insurance law issued in 1993 did not promote insurance products for the low-income market in the same way. Higher capital requirements caused some insurance companies to merge, while others left the market altogether.

This case study relates the experiences of Serviperú (formerly SEGUROSCOOP) that was hurt not only by the regulatory changes, but also experienced a decline in its core market, Peruvian cooperatives, which had not weathered the previous storm of hyperinflation and macroeconomic instability very effectively. In October 1994, SEGUROSCOOP had to cease its insurance operations for the cooperative sector and became Serviperú, a company offering health care and funeral services.

This paper was commissioned by the “Good and Bad Practices in Microinsurance” project. Managed by the ILO’s Social Finance Programme for the CGAP Working Group on Microinsurance, this project is jointly funded by SIDA, DFID, GTZ, and the ILO. The major outputs of this project are:

1. A series of case studies to identify good and bad practices in microinsurance.
2. A synthesis document of good and bad practices in microinsurance for practitioners based on an analysis of the case studies. The major lessons from the case studies will also be published in a series of two-page briefing notes for easy access by practitioners.
3. Donor guidelines for funding microinsurance.