Context

Ensuring a balance between financial and social measures is a major issue for a business that has a social purpose such as microinsurance.

This principle was highlighted by the participants of two workshop organized to develop performance metrics in 2006 and in 2007, by the Microinsurance network, ADA (Appui au développement autonome) and the Belgium Raiffeisen foundation (BRS). Therefore the 10 key performance indicators (KPI) that were established were presented with a « social interpretation » explaining their social signification.

The KPI were experienced as a foundation for developing social performance indicators (SPI). In 2010, the performance indicators working group of the Microinsurance network decided to start building up social performance indicators and held a workshop with a group of 15 microinsurance practitioners, in Luxembourg on the month of October.

Contribution

The workshop leaded to a set of eight key principles representing a « code of conduct » for social performance and eleven indicators, chosen with a sector wide approach to be applicable to any microinsurance institution. The purpose is also to propose « reference » indicators and practices, and then to harmonize the methodologies.

The document explains the steps of the development of social performance indicators ; the setting up of the microinsurance metrics was inspired by the experience and the good practices identified from microfinance. This may also guide practitioners of other sectors in the implementation of social performance.

Content

 The first parts explain the importance of SPI, characterize and define what is social performance in microinsurance.
 Then eleven key principles are presented, in one page each. All of them (from a “client focus” approach to environmental policy) might be applied to reinforce social performance not only in microinsurance but in other sectors.
 Each of the eleven social performance proposed by the working group is presented using the same plan : definition, calcul methodology, significance and interpretation.

Appendix 1 summarize the principles and indicators in 4 pages.
Appendix 2 is the French translation of appendix 1. Il résume les principes porteurs de la performance sociale et les indicateurs proposés par le groupe de travail du Microinsurance network en 2010, le document principal devrait être traduit en français prochainement.