Developing,
Marke0ng,
and
Managing
Micro‐
      Insurance
Products
and
Partners

                   Reggie
Ocampo

       ...
June
2006
–
November
2007

1st
Insurer

Schedule
of
Indemnity:

Accidental
Death
and
Permanent


Disablement:

 
     
   ...
Dec.
2007
–
August
2009

2nd
Insurer

Schedule
of
Indemnity:


 
 
        



Personal
Accidental
Death







Burial

  ...
Challenges
Encountered
from
the
first
two

               Insurance
Provider

•  Low
Rate
of
Claims
leading
clients
not
to
...
Claims
for
the
Year
2008
&
2009

Year
    Total

    Approved
        Type
of
Claim
    Amount
of
         Amount
of

    ...
What
is
Success
in
Microinsurance?

•  Insurers

   – Profitability

   – Expansion
of
risk
pool
and
market

•  Delivery
ch...
Considera0ons
in
choosing
an
Insurer

             partner

a)  Are
they
stable,
sound,
and
profitable?

  –  How
long
have...
Considera0ons
in
choosing
an
Insurer

       Partner
(Con0nua0on)

 e)
What
is
their
staff
profile?

   ‐  Do
they
understan...
Factors
in
Microinsurance
Purchases

•  Understanding
of
insurance

  – Knowledge
will
make
client
appreciate
the
product
...
Transi.on
to
Micro
Ensure


•  Signed
MOU
with
Micro
Ensure
January
2009

•  What
took
the
Interest
of
FMB
is
that
the

  ...
September
2009
to
Present

Insurer:
Grepalife

Intermediary:
Micro
Ensure
Philippines

Schedule
of
Indemnity:


 
       
...
Added
Services
Provided
by
Micro
Ensure


•  Promo.onal
Materials(e.g.
Comics
telling
the

   benefits
of
Micro
Insurance
a...
Status
of
Claims
in
Micro
Ensure

Year
    Total

    Approved
        Type
of
Claim
       Amount
of
         Amount
of

...
THANK
YOU!

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Developing, Marketing, and Managing Micro-Insurance Products and Partners

  1. 1. Developing,
Marke0ng,
and
Managing
Micro‐ Insurance
Products
and
Partners
 Reggie
Ocampo
 First
Macro
Bank
 2010
RBAP‐MABS
Na.onal
Roundtable
Conference
 Hya=
Hotel
and
Casino,
Manila
 June
3,
2010

  2. 2. June
2006
–
November
2007
 1st
Insurer
 Schedule
of
Indemnity:
 Accidental
Death
and
Permanent

 Disablement:

 
 
 
 
 50,000
 Unprovoked
Murder
&
Assault:
 
 25,000
 Death
Due
to
Sickness

 
 













5,000
 Death
Due
to
other
Causes
 
 
 10,000
 Hospitaliza.on
Benefit:
 Daily
Hospital
Benefit

 
 






70
per
day

 Max.
of
183
days.
Minimum
of
3
days
 Surgical
Benefit
 
 
 



 
750
 Miscellaneous

 
 
 













350
 Premium:
160
for
the
period
of
6
months
 Insured:
Member
Only

  3. 3. Dec.
2007
–
August
2009
 2nd
Insurer
 Schedule
of
Indemnity:
 
 
 
 



Personal
Accidental
Death







Burial

 

Hospital
 
 
 
 







And
Permanent
Disability
 







Assistance
 

Benefit
 Client
 
 
 25,000
 
 
5,000
 







50/
Day
 Spouse
 
 
 12,500



















5,000












50/
Day
 Dependent
Child
 















6,250





















5,000












50/
Day

 Parents
of
a
Single













6,250





















5,000












50/
Day

 Borrower
 
 











































Max.
of
15
days
 
 
 
 
 
 
 

















per
illness
 
 
Premium:


160
for
the
period
of
six
months

  4. 4. Challenges
Encountered
from
the
first
two
 Insurance
Provider
 •  Low
Rate
of
Claims
leading
clients
not
to
believe
in
the
 insurance
coverage
anymore.
 •  Clients
who
had
approved
claims
in
the
hospitaliza.on
 benefit
felt
the
amount
is
too
small.
(Some.mes
cost
of
 travelling
back
and
forth
from
clients
house
to
the
hospital
is
 higher
than
the
amount
paid
by
the
insurer
per
day.)
 •  Clients
complain
that
they
cannot
feel
the
insurance
benefit.
 •  Too
many
exclusions
leading
to
very
low
rate
in
approval
of
 claims.
 •  Result
of
claims
takes
a
long
to
.me
to
know
 •  Lacks
training
to
field
staff
leading
to
confusion
regarding
 Insurance
Policy
that
results
to
misunderstanding
with
clients.


  5. 5. Claims
for
the
Year
2008
&
2009
 Year
 Total

 Approved
 Type
of
Claim
 Amount
of
 Amount
of
 Number
of
 Claims
 Claim
 Premium
 Claims
 Collected
 2008
 5
 1
 Hospitaliza.on
 











200
 









645,560
 2009
 9
 4
 Loss
of
Life
and
 






36,600
 









273,950
 Hospitaliza.on
 Total
 14
 5
 36,800
 919,240

  6. 6. What
is
Success
in
Microinsurance?
 •  Insurers
 – Profitability
 – Expansion
of
risk
pool
and
market
 •  Delivery
channels
 – Addi.onal
income
stream
 – Compe..ve
advantages
 – More
stable
clients
/
members
 •  Low‐income
market
 – Affordable,
accessible,
responsive
products
that
help
 reduce
risk

  7. 7. Considera0ons
in
choosing
an
Insurer
 partner
 a)  Are
they
stable,
sound,
and
profitable?
 –  How
long
have
they
been
in
business?
 –  Who
are
the
board
of
directors?
 –  Review
annual
reports
and
company
profile
 b)  Are
they
compliant
with
regula0ons?
 –  Does
their
status
fit
your
needs
(life
or
non‐life)?
 c)  Are
they
flexible?
 –  Will
they
accommodate
clients’
needs?
 –  Is
there
evidence
of
innova.on?
 d)  Is
their
pricing
appropriate
to
the
market?

  8. 8. Considera0ons
in
choosing
an
Insurer
 Partner
(Con0nua0on)
 e)
What
is
their
staff
profile?
 ‐  Do
they
understand
the
market
of
microfinance?
 f)
What
is
their
claims
reputa0on?
 ‐  Are
claims
paid
quickly?
 ‐  Are
their
claims
procedures
reasonable?
 h)
Capacity
 ‐  Do
they
have
excess
capacity
for
the
development
 and
management
of
microfinance
ins.tu.on?
 ‐  Do
they
use
manual
or
IT
systems?

  9. 9. Factors
in
Microinsurance
Purchases
 •  Understanding
of
insurance
 – Knowledge
will
make
client
appreciate
the
product
 and
make
the
client
know
what
he
is
paying
for
 – Create
a
posi.ve
percep.on
with
insurance
 •  Product
Design
 – Will
the
product
serve
the
client
need?
 – Is
it
affordable?
 – Is
it
easy
to
understand?

  10. 10. Transi.on
to
Micro
Ensure
 •  Signed
MOU
with
Micro
Ensure
January
2009
 •  What
took
the
Interest
of
FMB
is
that
the
 insurance
premium
have
lesser
exclusions
and
 simplicity
of
the
processing
of
claims.
 •  Key
persons
from
FMB
and
Micro
Ensure
have
 several
mee.ngs
to
design
the
Insurance
 Package,
as
well
as
the
price
of
premium.

  11. 11. September
2009
to
Present
 Insurer:
Grepalife
 Intermediary:
Micro
Ensure
Philippines
 Schedule
of
Indemnity:
 
 
 
 












 
 
 
 













 Loss
of
Life











Funeral







Total
 Client
 
 
 
40,000
 



















10,000












50,000
 Spouse
 
 
 
20,000



























10,000












30,000
 Dependent
Child/
 
 
10,000





























5,000












15,000

 Sibling
 Parents
of
a
Single













 10,000






























5,000











15,000

 Borrower
 
 












































 
 Premium:


370
for
the
period
of
six
months
 Other
Features:
 •  All
cause
of
death
is
en.tled
for
Funeral
Assistance
Benefit
 •  Advance
Funeral
Benefit
(1
day
processing)
 •  Contestability
period
is
for
12
months.

Ajer
contestability
period,
any
cause
of
death
will
be
 covered


  12. 12. Added
Services
Provided
by
Micro
Ensure
 •  Promo.onal
Materials(e.g.
Comics
telling
the
 benefits
of
Micro
Insurance
and
benefits
of
 being
a
client
of
a
Rural
Bank)
 •  Training
of
Bank
Staff

  13. 13. Status
of
Claims
in
Micro
Ensure
 Year
 Total

 Approved
 Type
of
Claim
 Amount
of
 Amount
of
 Number
of
 Claims
 Claim
 Premium
 Claims
 Collected
 2009
 1
 1
 Loss
of
Life

 








50,000
 Of
the
client
 214,875
 2010
 3
 3
 2
Loss
of
Life
of
 






20,000
 



240,375





 dependent
 1
Loss
of
life
of
a
 member
 Total
 4
 4
 70,000
 455,250

  14. 14. THANK
YOU!


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