Selection of an Insurance Partner to Introduce a Term Life Product for Savings Groups at VisionFund Rwanda
VisionFund Rwanda (VFR) is one of the largest deposit-taking Microfinance Institutions (MFIs) in Rwanda with a mission to provide financial and non-financial services to underprivileged rural communities. VFR is a subsidiary of VisionFund International and began in 1997 as a World Vision microfinance program, and in 2004 became a Central Bank regulated MFI in Rwanda.
We provide microfinance products to empower the clients we serve, primarily vulnerable women with children and youth in rural areas. Our products provide financial services to strengthen Village Savings and Loans Associations (VSLAs) and groups. Our average loan size is US $235. Strategically, we are one of the biggest partners with World Vision Rwanda and Care International in Rwanda.
Our savings products include educational savings accounts for children and we are developing financial products targeting youth. VisionFund Rwanda’s eight branches serve the entire country. Ninety percent of our field officers' work is spent in rural areas meeting potential clients and groups. The introduction of digital solutions allows our loan officers to provide better access to financial services for our most remote clients.

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Invitation for Tenders
Selection of an insurance partner to introduce a Term Life product for Savings Groups at VisionFund Rwanda
october 22
The existence of this Invitation for Tenders and the information contained herein are subject to confidentiality obligations and should not be shared outside your organization.

Purpose
This invitation for Tenders is being sent to preselected insurance partners operating in Rwanda with the objective of generating expressions of interest for the selection of a reliable, committed and financially sound partner for the underwriting and marketing of a Term Life product for our clients to be marketed through our VisionFund Rwanda (VFR) branches and through its mother organization’s programs, World Vision.
This invitation for Tenders does not constitute an offer and VFR does not undertake to accept any response to an offer.

Background and objectives
VisionFund International
VisionFund International (VFI) is the world’s largest global Christian microfinance network and part of World Vision, a Christian relief, development, and advocacy organisation. We serve over 990,000 clients and impact the lives of 4.25 million children in 28 countries.
We believe in brighter futures for children, building lives free of need and full of promise. We achieve this through our financial services empowering impoverished households to create income and jobs. We also train clients to grow successful businesses using their income to support their children and families. This also unlocks economic potential for communities to thrive.
VFI is unique across the financial inclusion industry where institutions are increasingly leaning towards return on investment and moving away from social impact. Micro-Finance Institutions (MFIs) have withdrawn from the rural areas where the need is great, but costlier to implement but VisionFund remains committed to serving this market segment and to developing efficient and cost-effective models.
We believe providing insurance can bring greater security and benefits to our clients and their communities as well as enhance confidence to invest in their businesses and agricultural activities.

VisionFund Rwanda (VFR) is a subsidiary of VisionFund International and one of the largest deposit taking MFIs in Rwanda whose mission is to provide financial and non-financial services to underprivileged rural communities.
VFR started its operations in 1997 as World Vision Rwanda’s department and later in 2004 got the central bank licence to operate as a deposit taking microfinance.
Since its incorporation in 1997, VFR has risen to be one of the best practice microfinance programs in Rwanda:
• Network of 8 branches
• VFR serves over 29,826 borrowers in Rwanda
• VFR offers group loans to over 1,000 Savings Groups, reaching around 26,000 members.
• As of September 2022, VFR has an outstanding loan portfolio of $ 2,629,504 million
• 90 % of its clientele is rural based
• 64 % are women
• The average age is 40 years’ old
VFR is recognized for taking financial services to the rural and the most vulnerable ones in the communities. VFR is also known to provide financial services to people who would otherwise have little or no access to credit and savings. Also, the well-being of children, families and communities in Rwanda is the main focus. We serve the country’s poor people by helping them to start or grow their own businesses through loans of just a few hundred dollars.
VFR continues to consolidate its sustainability progressively. A mixed loan portfolio provided through solidarity group lending, with a high average repayment rates, longer loan life cycles, higher loan officer productivity, and repeated loans have among others contributed to increased incomes, and hence enhanced institutional sustainability.

Microinsurance arrangement
VFR wishes to enter a sustainable and profitable business relationship with a regulated insurance partner to provide high-value products to its clients.
In this relationship, the insurance partner will manage the risk of the microinsurance products that VFR identifies as appropriate. VFR will use its market strength and relationship with its clients to bundle the microinsurance products with loans distributed.
According to this approach, VFR will work with the selected partner to design a new insurance product that will be affordable, accessible, and appropriate to the needs of lower income households. The insurance partner will propose a product coverage, processes (enrolment, premium payment, claim reimbursement), limitations, eligibility requirements and pricing of the new products, as it will bear the financial risk.
The key assumptions for ensuring the successful implementation of microinsurance products are:
• Low-income people will be able to buy the insurance products while it will meet their needs
• Insurance partners are interested in and able to develop products that meet those needs
• VFR and the selected insurance partner can work together to efficiently deliver insurance products
• The product is both affordable and technically balanced for the providers and delivery channels.
For this Invitation for Tenders, VFR is seeking written proposals from insurance companies and/or insurance brokerage firms to provide services for our Rwandan operations that include, but are not limited to insurance placement and servicing, risk exposure analysis, as well as general insurance advisory services and claims assistance for insurances on behalf of or for the benefit of its clients.
This Invitation for Tenders does not include VFR’s own insurances. Instead, it is looking for insurances relating to VFR’s clients and are mostly for Micro insurance classes.

Legal review
The legal review indicated that insurance partners will need to review closely any potential licensing or other regulatory issues related to VFR staff’s role in selling the insurer’s products. The insurance partner is also expected to conduct a thorough review of all legal issues related to the products and the relationship between VFR and the insurer.
Products specifications
VFR wishes to receive tenders from insurance partners interested in providing products that meet the following specifications:
Type Term Life
Target market All members (mandatory model distribution) of Savings Group taking a Group Loan with VFR.

The coverage will apply to all members of the group and will last the same time as the Group Loan provided by VFR.

The average Group Loan duration is 7 months.
Expected volume 25,000 members during FY 23 (Dec 22 to sept 23) in around 1,000 groups.
Risks to cover 1. Death
Additional Benefits that VFR would be interested by:
1. Permanent Disability
2. Temporary disability
Benefits The insurance benefit will be the same for all members whatever the duration of the Group Loan is.

To be provided following the requested premium amounts.
Expected premium Regarding the low capacity of the target to pay for insurance, VFR would like to know the benefit(s) that could be associated to these monthly premiums:

1. 110 RWF per month per member
2. 130 RWF
3. 150 RWF
4. 200 RWF
NOTE: only one level will be kept and distributed by VFR; the choice will not be left to members.

The premium per member will be calculated accordingly:
Duration of Group loan (in month) x monthly premium per member

Other important aspects:
Client information Savings Groups are quite independent and internally organized. The information collected on members are only the following:
• Name
• National ID number
Note that other info such as Gender or Date of birth is not collected.

We then ask the potential partner to take this into consideration to be able to cover everyone in the group.
Detailed information is known by VFR only on the President of the group, the secretary, and the treasurer.
Exclusions and limitations The insurer needs to specify the exclusions list
Mode of payment Premiums will be collected by VFR
Insurer and VFR will develop a system to
electronically exchange required client insured data
Beneficiary The main and only beneficiary in case of claim will be the Savings Group itself
Insurer benefits
By participating with VFR, the selected insurance partner will benefit from:
• Access to over nearly 25,000 current members
• An effective delivery channel
• An opportunity to gain a competitive advantage over other companies

Solicitation Terms
Agreement
VFR intends to issue an exclusive agreement for a base period of one (1) year to the successful applicant from this process.
Discretion
Tenders shall not disclose that they have been invited to present a tender, nor discuss the tender they intend to make nor canvass for its acceptance. Insurance partner staff shall not discuss any part of their tender with any VFR staff except to ask questions related to this invitation.
Any tenderer found to violate these confidentiality provisions will be automatically rejected and not invited to submit tenders for future work, and VFR may pursue any other appropriate legal remedy.
VFR agrees that the content of each response will be held in the strictest confidence, and details of any response will not be discussed with any other party. By submitting a response to these terms, the insurance company agrees not to disclose any material facts to the general public.

Offers/Quotations
Prices must be inclusive of all costs, including taxes and fees, in RWF. Quotes and prices should remain valid for ninety (90) calendar days from proposal submission.

Proposal Costs
There is no reimbursement for costs associated with preparing or submission of proposals in response to this Invitation for Tenders or costs associated with possible award negotiation.

Submission Requirements
Questions
Any queries about this Invitation for Tenders shall be addressed in writing and electronically conveyed to VFR’s contact by the 12th of October 2022 at the latest. Any queries raised by one tenderer and considered pertinent to the tendering process will be responded to, without delay and in writing, electronically to all institutions invited to tender.
The VFR contact on insurance is Theophile

No alteration
No alteration or amendment shall be made to the original tender documents. Tenders may not be qualified or accompanied by statements that might be construed as rendering the tender equivocal; only unqualified tenders will be considered.

Submission of tender
Proposals must be organised according to the submission requirements and proposal format in annex.
Tenders must be submitted electronically and with scanned signatures by the 16th of October 2022 12:00pm – GMT at the latest. Late tenders will not be accepted. Tenders should be addressed to the contact identified above.
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