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Microcare Ltd. Health Plan (Uganda)

Posted on by MSC

This paper summarizes the interventions of Microcare, a not-for-profit organisation involved in the provision of heath care financing services in Uganda. Microcare offers a single comprehensive health care coverage package and provides third-party administrative services to other companies in addition to being involved in developing information systems for health insurers. The paper briefly outlines Microcare’s products, and its institutional structure, covering health scheme operations, accounting, marketing strategy, sustainability, management and governance and partnerships.

The paper also highlights the relationship between the partners, namely the health service providers and the MFIs, and Microcare. While discussing the likelihood of sustainability, this paper also addresses relevant operational issues, the organizational risk management strategy and clients’ level of satisfaction with the product. A summary of the strengths, weaknesses, opportunities and threats related to Microcares’ program is also provided.

Developing Staff Incentive Schemes

Posted on by MSC

Examines what lessons can be learned from staff incentive schemes from Latin America, Eastern Europe and Africa.

Product Costing – The Experience of MicroSave

Posted on by Parul Tandon

This note focuses on understanding of processes and costs structures which in turn facilitates improvements in efficiency and allows more informed pricing decisions to be made. It discusses activity based costing (ABC) at length and its significance for the MFIs such as reducing costs, redefining/rejecting loss making products etc. It also draws lessons from costing experience of MicroSave. The note recommends having management commitment, trained staff, careful background work and necessary resources in order conduct a successful costing exercise.

Designing Staff Incentive Schemes

Posted on by Parul Tandon

This note lays out the principles and steps for designing effective staff incentive schemes. It focuses primarily on transparency and fairness in designing and implementing staff incentive scheme. It addresses critical design issues such as timing, frequency of incentive payout, and weight of bonus in total remuneration in implementing staff incentive scheme. The note briefly discusses five types of incentive schemes—individual incentive schemes, team based incentive scheme, employees’ stock ownership plan (ESOPs), profit sharing & gain sharing schemes and delayed benefits. The note also outlines 10 major steps of designing an effective incentive scheme.

One Step Beyond: Challenges and Opportunities in Promoting Quality Financial Services in Remoter Areas

Posted on by MSC

The last decade of microfinance practice, particularly in East Africa, has neglected rural finance. Support to the sector has concentrated on turning credit programmes into sustainable microfinance institutions (MFIs). The result of this has been a focus on small-scale businesses and especially traders, who can manage these relatively inflexible products, and consequently also a concentration of their activities in urban environments and market centres. At the same time there is evidence of innovation in Kenya in the form of managed ASCA programmes, Financial Service Associations and the emergence of ‘non-traditional’ SACCOs. This paper describes models of provision in Kenya that are reaching remoter areas or appear to have the potential to do so; analyses the characteristics of these models and presents the outline of an action research project to promote rural financial service provision.

Systematic Product Development 

Posted on by Parul Tandon

This note briefly outlines the stages of product development for an MFI and categorises it into five distinct phases—evaluation and preparation, market research, concept/prototype design, pilot testing and its launch and roll out. It also gives a brief of various toolkits that have been developed by MicroSave enabling MFIs to better understand their clients’ needs and serve them efficiently.