Developments in Micro-insurance

RBAP‐RBRDFI Microinsurance Ini4a4ve Reo Nore P. Pardilla 

RBAP  

2011 RBAP‐MABS Regional Roundtable Conference Hya= Hotel & Casino, Manila 

November 9, 2011  

The RBAP-RBRDFI Microinsurance Initiative: What’s Next For Rural Bank MI?

Regional Roundtable Meeting Reo Nore P. Pardilla Microinsurance Training Officer RBRDFI

Relationship Structure

Funding Support Technical Assistance

Rural Bankers Association of the Philippines (RBAP)

Rural Bankers Research and Development Foundation, Inc.

(RBRDFI)

MI Basic Training

MI Agent Licensing

MI Product Development & Enhancement

Member – Rural Banks

Technical Assistance &

Research

WHERE ARE WE NOW?

13 Pilot Banks

145 Rural Banks trained in Basic MI

297 staff trained

IC approval of RBAP-RBRDFI as MI Training Provider

Microinsurance Innovation Facility Grant

TARGETS

100 or more rural banks with 1,000 or more branches and OBOs licensed as MI agents

1,000,000 or more microenterprise clients and

3,000,000 of their household members covered by

microinsurance

7 rural banks licensed as MI Agents

MI BASIC TRAINING

Results to Date (as of Oct 2011)

# of Courses 13

# of Banks Trained 145

# of Bank Staff Trained 297

Basic Microinsurance Training

(with qualifying exam)

By RBAP-RBRDFI

Product Mastery Training

By Partner-Insurer

2 DAYS 1 DAY

MICROINSURANCE AGENT TRAINING FOR RURAL BANKS

BSP MEMO 027

The Target Market of MICRO+Insurance

 Microfinance Borrower

 Microfinance Depositor

 Low-income client of the Rural Bank

BSP Memorandum 027-2011 redefines “microfinance clients” to include any existing client classified by the bank as low-income or with an average annual household income of PhP206,000 or less.

THE RBAP MI TRAINING COURSE

Key Modules: 1.  Fundamental concepts and

principles of MI 2.  MI Regulations in the

Philippines 3.  Effective Marketing of MI

Training Approaches: 40 % Lecture 25 % Group Discussions 35 % Games & Simulation Exercises

���

GROUP DISCUSSIONS�RBAP MI Training Approaches

  Allows for sharing of field lessons and practical insights

  Typically interactive and open

  Employs Case Studies

GAMES & SIMULATION ACTIVITIES�RBAP MI TRAINING APPROACHES

  Understanding MI:   Barangay Bigkis (localized

Treasure Pot game)   “Ang MI ay parang

…” (Microinsurance is like)

  Bahay-Buhay-Bagyo (“house-life-storm”)

  Marketing & Selling MI:   The Mystery Object   D-I-G Tactic (Discover

Interests then Get solutions)

ASSISTANCE ON MI PRODUCT

DEVELOPMENT

MI PRODUCT COMMONLY OFFERED

TERM LIFE INSURANCE

Accidental Death Benefit

Rider

Accidental Medical

Reimbursement Rider

Hospital Confinement Benefit Rider

Burial Assistance

Rider

Fire Assistance Rider

MI COVERAGE FOR THE FAMILY

MARRIED MEMBERS: Principal Insured Spouse Child 1 Child 2 Child 3

SINGLE MEMBERS: Principal Insured Parent 1 Parent 2 Sibling 1 Sibling 2

PREMIUM: P200 – P 500 / YEAR

MI AGENT LICENSING

RESULTS TO DATE (as of Oct 2011)

# of Banks in Approval Process 45

# of Banks Approved as MI Agents 7

RESULTS:

Compliance Process

TRAIN

In MI Basic + Product Mastery

REQUEST

For BSP No Objection Notice

ASSEMBLE

your MI Team

CHOOSE

your partner well

SUBMIT

requirements to RBAP-RBRDFI

RBAP-RBRDFI will be the one to coordinate submission of rural banks’ licensing requirements to the Insurance Commission and then the BSP.

CHECKLIST

OF

REQUIREMENTS

CHALLENGES RURAL BANKS FACE

CHALLENGES

  Process flow in procuring licensing requirements takes the bank too long to procure  Challenge in determining which is the best microinsurance provider to work with

 Minimal information about microinsurance

 Trained staff is not automatically assigned as MI soliciting officer

RBAP’s RESPONSE   RBAP worked together with the regulators

to clarify rules and develop expeditious process

  RBAP provide parameters on how to

determine the best insurance provider in terms of product, service and delivery

  Provided trainings to rural banks on how to efficiently service microinsurance to rural bank clients

  Re-training of Bank Staff who would be appointed as new MI Soliciting Officer. Educate the bank for the disadvantages of this set up.

WHAT’S NEXT?

BASIC MI TRAINING

UPCOMING TRAININGS

2011

Nov 24 -25, 2011 Tuguegarao City Host: Cagayan – Kalinga Apayao

Federation

Dec. 7 - 8, 2011 RBAP Building, Manila

Open Seminar

UPCOMING TRAININGS 2012

Jan. 26 -27, 2012 Negros

March 22 – 23, 2012 Cebu

April 19 – 20, 2012 CARAGA

May 10 – 11, 2012 Southern Luzon

June 7 – 8, 2012 Northern Luzon

Feb 23 – 24, 2012 Davao

ASSISTANCE ON MI PRODUCT

DEVELOPMENT

WHAT CLIENTS THINK ARE THE MOST IMPORTANT INCIDENTS TO PREPARE THE

FAMILY FOR

Death due to accident 19%

Destruction of property / assets 9%

Burial expense in case of death in the family 8%

Sudden loss of income due to hospitalization 18%

Hospitalization 25% Destruction of crops due to fire, flood, typhoon, etc 12%

Death due to illness 4%

Education 1%

Others 3% Based on RBAP-MABS Survey as of 2010

RISK EVENTS THAT OUR CLIENTS ARE MOST VULNERABLE TO:

Sudden illness in the family while lacking the finances to access appropriate medical care

Calamities that destroys their livelihood and property

MARKET NEEDS

Type of MF Accounts Number (as of December 2010)

Microfinance Loans Approx. 800,000

Micro-Deposits 4,941,445 (86%) **

Estimated Household Members 15,000,000

Size of the Rural Bank Micro- Market

**Source: Philippine Deposit Insurance Corporation

MI ONLINE PORTAL

www.microinsurance.rbap.org

Contents

 News and Updates

 Microinsurance Training Courses

 Microinsurance Products and Microinsurance Providers

 Downloadable Forms

 Partners

 Regulatory Issuances

OFFICIAL WEBSITE FOR RBRDFI

MICROINSURANCE

FOR RURAL BANKS

The website contains:  List of Microinsurance Providers

 Product Proposal Request Form to Microinsurance Providers

 Summary of microinsurance products offered  News and updates about Microinsurance

 Downloadable Forms for Licensing and Accreditation   Training Schedule

The website contains:

  Company Profile and Product Information for a cost – efficient advertisement

 List of Trained Banks by RBRDFI  Downloadable Forms that can be shared with rural bank partners

 Training Schedule

FIND A MICROINSURANCE PRODUCT FEATURES:

REQUEST PROPOSAL FROM MI PROVIDER

FIND A MICROINSURANCE PARTNER

CONTACT RBRDFI

RBAP’s Assistance and

Services to Microinsurance

Technical Assistance and Research

Discussion with Regulators for service enhancements and monitoring service quality

Education / Training to Rural Banks

Promotion of access to information that may enhance MI product design and service

provision

RBAP SERVICES

THANK YOU �Reo  Nore P. Pardilla MicroinsuranceTraining Officer RBAP - RBRDFI Email:reonore082011@gmail.com �

�Ghay Lyne P Mapano Microinsurance Project Coordinator RBAP - RBRDFI Email:gmapano@yahoo.com �

�Ruth B. Aseron Microinsurance Coordinator RBAP - MABS Email:ruthaseon@gmail.com �