developments in micro-insurance
DESCRIPTION
Ms. Reo Nore Pardilla of the Rural Bankers research and Development Foundation, Inc. shares recent industry trends and updates especially on tools to be used by rural banks.TRANSCRIPT
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:[email protected] �
�Ghay Lyne P Mapano Microinsurance Project Coordinator RBAP - RBRDFI Email:[email protected] �
�Ruth B. Aseron Microinsurance Coordinator RBAP - MABS Email:[email protected] �