“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!