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Why, how and what impact mutual insurance can improve the living standard of the marginalized groups By Oliver M. Reyes, CARD MBA, Philippines AOA Seminar, Colombo, Sri Lanka, August 2014
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“Todo-todong Benepisyo at Paglaki ng Pondo ay Kayang-kaya
kung Tayo ay Sama-sama”
“Why, how and what impact mutual insurance can improve the living standard of the marginalized groups”
By: Oliver M. ReyesDeputy Director for Operation
“One out of five Filipinos is covered by microinsurance(19.95 million), making the Philippines the country withthe highest coverage in Asia.”
Source: AIR eDaily/04 Feb. 2014
PENETRATION
RATE
Philippines 20.4%
Thailand 14.1%
India 8.9%
Bangladesh 5.1%
Malaysia 3.6%
Pakistan 3.0%
China 0.9%
Indonesia 0.5%
Vietnam 0.2%
COUNTRIES
27.4 M families live under poverty thresholdand 1 out of 3 Filipinos is considered poor(NSCB, 2013)
44% of the population live on less thanUS$2 a day and 14% on US$1 a day or less(WB, 2007)
The poor is vulnerable to risks, i.e, life cycleneeds and unpredictable risks such asillness, death, theft, natural & man-madedisasters(Llanto et al., ‘Microinsurance in the Phils: Policy and Regulatory Issues andChallenges,’ 2007)
Poverty and Vulnerability
MICROINSURANCE is another WEAPONfor poverty alleviation.
MICROINSURANCE is a SAFETY NETfor micro-entrepreneurs.
MICROFINANCE combined with MICROINSURANCE creates SYNERGY
FUNERAL
HOSPITAL
MEDICAL
EXPENSES
DEATH
SICKNESS
DISABILITY
INCOME
FROM
MICROCREDIT
CYCLE OF POVERTY CAUSED BY MISFORTUNEINCOME FROM MICROCREDIT REMAINS !!!
MICROINSURANCE CAN BREAK THE CYCLE OF
POVERTY
All rights reserved CARD MBA 2009
rely on out-of-the-pocketcontributions of memberswhen a member or legaldependent dies.
more expensive on the part of the contributing members
unreliable collection resulting to non-payment of promised benefits
• rely on group liability
• try to collect from the household members
• write-off loans
CARD Mutually
Reinforcing
Institutions“Mga
Institusyon sa
iisang Misyon”
Automatic Membership
to CARD MBAAll rights reserved CARD MBA 2011
Institutional Relationship
In Term of Membership
1. Life Insurance Program
Accidental Death
Refund of Contributions
Motor Vehicular Accident Hospitalization Benefit
Total & Permanent Disability
2. Retirement Savings Fund
Mandatory Exit Age at 70
Optional Retirement at ages 65, 66, 67, 68 & 69
3. Loan Redemption Fund Death
Automatic Loan Offsetting upon TPD [AUTO-LOAD]
4. Golden Life Insurance Program Optional to 70 years old to 100 years old
1. Build-Operate-and-Transfer Program
Transfer of Technology
2. CARD Disaster Relief Assistance Program (CDRAP)
3. Mass Wedding
3If the dead body is
already buried at the time of validation and
with complete documents, the claim must be settled within
three days upon notification.
5[
On the 5th day upon notification, all claims
must be given action with finality. Claims with
incomplete documents will be given denial letter
but still can be settled upon completion of
required documents thru the letter of
reconsideration.
1If the dead body is not yet buried at the time
of validation, the claim must be settled within 24 hours upon
notification.
AVERAGE DEATH
Per Mo = 559
Per Day = 19
AVERAGE DEATH
Per Mo. = 941
Per Day = 31
AVERAGE DEATH
Per Mo. = 346
Per Day = 12
AVERAGE DEATH
Per Mo. = 79
Per Day = 3
MEMBER
2,795
SPOUSE
4,706CHILDREN
1,731PARENTS
396
TOTAL DEATH CLAIMS = 9,628
Average death = 1,925/Mo or 65/day
DEATH STATISTICS As of May 31, 2014
MEMBER 2,279 94 159 77 33 19 94 2,755
% 82.72% 3.41% 5.77% 2.79% 1.20% 0.69% 3.41% 100%
LEGAL DEPENDENT 2,611 1,599 825 577 416 280 461 6,769
% 38.57% 23.62% 12.19% 8.52% 6.15% 4.14% 6.81% 100%
MEMBER 18 18 7 2 1 7 4 57
% 31.58% 31.58% 12.28% 3.51% 1.75% 12.28% 7.02% 100%
LEGAL DEPENDENT 10 7 1 2 0 1 4 25
% 40.00% 28.00% 4.00% 8.00% 0.00% 4.00% 16.00% 100%
MEMBER 340 446 98 82 53 31 154 1,204
% 28.24% 37.04% 8.14% 6.81% 4.40% 2.57% 12.79% 100%
SPOUSE 210 361 68 56 39 32 98 864
% 24.31% 41.78% 7.87% 6.48% 4.51% 3.70% 11.34% 100%
5,468 2,525 1,158 796 542 370 815 11,674
9.92% 6.82% 4.64% 3.17% 6.98% 100%
MVAH
OVER-ALL
BENEFIT/DONATION 1 DAY1 DAY RE CONS IDE RE D
CLAIM2 DAYS 3 DAYS 4 DAYS 5 DAYS >5DAYS TOTAL
DEATH
TPD
OVERALL RATING68.47%
93.02%
Members93.73% Paid within 1-3-5-
day Target
Legal Dependents 92.65% Paid within 1-3-5-
day Target
*As of May 31, 2014
162,000
164,000
166,000
168,000
170,000
172,000
174,000
176,000
178,000
180,000
Typhoon Yolanda Other Disasters
179,388
168,412
42%58%
Severely Affected
Not Affected
AFFECTED MEMBERS IN
2013 CALAMITIES
NO. OF NO. OF AFFECTED
UNITS MEMBERS
CARD Inc. 145 91,644 36,657,600.00
CARD Bank 149 79,385 31,754,000.00
CARD SME 8 174 69,600.00
BOAT Partner 2 8,040 3,216,000.00
Staff 145 58,000.00
TOTAL 304 179,388 71,755,200.00
PARTICULARS
CDRAP
AMOUNT
Member 196 6,744,500.00 78 179,655.00 93 1,666,342.33
Spouse 72 521,000.00
Children 120 825,000.00
Parent 2 12,500.00
Staff 1 50,000.00
TOTAL 391 8,153,000.00 78 179,655.00 93 1,666,342.33
9,998,997.33 TOTAL CLAIMS
AMOUNT OF CLAIM AMOUNT OF
CLAIM
AMOUNT OF
CLAIM NO.
REFUND OF CONTRIBUTION CREDIT LIFE-LRF
NO. NO.PARTICULARS
BASIC LIFE INSURANCE
With Reinsurance Coverage for claims of members for
basic life insurance.
1. Reached the marginalized sector
CARD MBA increased awareness and helped improve
understanding of microinsurance, especially among stakeholders.
This resulted to increased in membership from 28,531 to 1.8 million.
28,531 69,223 144,499
687,934
1,433,240
1,852,316
CARD MBA, 26%
Other MBAs, 74%
CARD MBA
Other MBAs
May 2014
Number of Clients: 2,388,224
(88.45% contribution in the MFI outreach in the country or
47.76% contribution to Poverty Reduction)
Number of Insured Individuals: 9,767,720
(20% contribution in the overall insured Filipinos)
Clients (incl. Savers): 2,318,121 Offices: 1,473
Loan Clients: 1,290,240 Total Assets: Php17.07B
Loan Outstanding: Php 8.7B Total Liabilities: Php13.09B
Savings: Php6.6B Total Equity: Php3.9B
Repayment Rate: 99.38% Operational Sufficiency: 118.52%
Staffing: 7,989 Financial Sufficiency: 112.21%
3. Paving the Way for a Regional Microinsurance Network
CARD MBA and Rimansi has established its leadership position in
the field of microinsurance in the country and in other parts of Asia
particularly in Cambodia, Vietnam and Indonesia.
2. Extending Risk Protection Services to the Poor and the
Disadvantaged
CARD MBA and Rimansi was able to prove the merit of
microinsurance delivered thru MFI-affiliated MBAs, convincing an
increasing number of organizations to venture into microinsurance,
formalize their operations and protect more economically challenged
families. As of December 2013, CARD MBA has 11 BOAT Partners and
Rimansi has 15 MI-MBA Partners.
20 M. L. Quezon St., City Subdivision, San Pablo City, LagunaTEL: (+6349) 562 4309FAX: (+6349) 562 0009EMAIL: info@cardbankph.com
THANK YOU
VERY MUCH!
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