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Microinsurance Roundtable Meeting

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RBAP-MABS Presentation at the Microinsurance Roundtable Meeting between Rural Bankers Association of the Philippines (RBAP), Microenterprise Access to Banking Services (MABS), Rural Bankers Research …

RBAP-MABS Presentation at the Microinsurance Roundtable Meeting between Rural Bankers Association of the Philippines (RBAP), Microenterprise Access to Banking Services (MABS), Rural Bankers Research and Development Foundation Inc. (RBRDFI), Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC),

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  • 1. Welcome to The Microinsurance Roundtable Meeting Hyatt Hotel and Casino, Manila September 17, 2010
  • 2. Meeting Objectives
    • Orient partner-insurers on the opportunities under the RBAP-RBRDFI Microinsurance Initiative
    • Identify opportunities emerging for commercial insurance providers in microinsurance product development and service delivery through rural banks
    • Present feedback ad information tracking mechanisms to help insurers improve their microinsurance product development and service delivery
    • Strengthen partnership agreement with the partner-insurers and RBAP-RBRDFI
  • 3. Session Flow
    • Session 1: Key Components of the RBRDFI Microinsurance Initiative
    • Session 2: Parameters for approval of Microinsurance Products and Support services for Insurers
    • Session 3: Options for cost-efficient microinsurance transactions and service delivery
    • Session 4: Feedback and information tracking for microinsurance partners
    • Interactive Discussion
    • Next Steps and Opportunities
  • 4. SESSION 1 KEY COMPONENTS OF THE RBRDFI MICROINSURANCE INITIATIVE With: RUTH ASERON Microinsurance Coordinator RBAP-MABS
  • 5. PARTNERSHIP FRAMEWORK Funding Support Funding Support Rural Bankers Association of the Philippines (RBAP) Rural Bankers Research and Development Foundation, Inc. (RBRDFI) Luzon Federations Visayas Federations Mindanao Federations Member–Rural Banks ILO Microinsurance Innovation Facility – Gates Foundation
  • 6.
    • Policy advocacy
      • Initiate discussions with regulators and assist with formulating relevant regulations
    • Serve as the information gateway for the sector
      • Facilitate access to market information for regulators, rural banks and insurance providers
    • Act as a “better services bureau”
      • Assist regulators in monitoring quality of service delivery by rural banks and insurers
      • Identify and communicate parameters for rural bank-insurer partnerships
    RBAP-MABS KEY INDUSTRY CONTRIBUTIONS
  • 7. ILO-RBRDFI PROJECT COMPONENTS
  • 8. 1 - REGULATIONS FOR MICROINSURANCE
  • 9. 1 - LEVEL 3 ENHANCEMENT: REGULATORY COMPLIANCE 3 Compliance to BSP and Insurance Commission Regulations
  • 10. COST-EFFICIENT AGENT LICENSING PROCEDURES
  • 11. ROLES OF PROJECT PARTNERS IN RB AGENT LICENSING Essential Steps to Service Enhancement Rural Bank Insurer RBAP-RBRDFI BSP / IC Institutional Assessment & Local Demand Research x x Appointment of Microinsurance Soliciting Officer x Formation of Microinsurance Core Group (3 members) x Amendment of Articles of Inc. for Microinsurance Agent Selling x Partner selection and contract negotiation x x Acquisition of Product Approval / Certification x x Accreditation Training 1: Basic Course on Microinsurance x x Accreditation Training 2: Product Orientation x x Issuance of Certificate of Training Completion x x Consolidation/Batching of Licensing Requirements x Endorsement of qualifying rural banks to IC & BSP x Issuance of Authorization to be a Microinsurance Agent/Broker x Selling, Marketing and Distribution of Microinsurance x x Capability enhancement of Microinsurance Sales Team x x Standards-setting & Performance Monitoring x x x x
  • 12. MICROINSURANCE WEB PORTAL (INFORMATION GATEWAY) HOME PAGE Why Microinsurance for RBs? The partner-agent model OVERVIEW NEWS & UPDATES Success Stories Monthly Highlights INSURANCE PRODUCTS Overview of the ILO-RBRDFI Project Log-in Essential Features Types of Insurance Available Products Product Matrices (Dynamic pages) By Type By Premium By coverage for dependents Partner Insurers Company Profile Contact Person(s) PARTNERS Participating Banks Commercial Insurance providers Regulatory Agencies Registration ALL PAGES Events & Announcements Stat Highlights Site Map REFERENCE LINKS Contact Us Events & Announcements Regulatory Issuances Microinsurance Publications MABS Initiatives Microinsurance Organizations By Face Amount Survey of MI products offered by RBs Downloadable materials RBAP Website Secured Access
  • 13.
    • Microinsurance Product design based on client demand study
      • Product features are responsive to client risk exposure and financial vulnerabilities
      • Responds to client needs and preferences
    • Premium contributions are affordable
      • Weekly contribution is not more than 5% of Weekly Minimum Wage for non-agri workers in Manila or Php95
      • Payment mode and schedule must be based on their cash flow and capacity to pay
    • Simple and Efficient Claims Processing
      • No more than 10 days upon receipt of complete documents
      • Layers of claims validation to be minimized > especially discount the need for claims validation at the corporate office of the insurance company
    • Adequate marketing and client education support
      • Informational materials (product brochures/pamphlets) clarifying that insurer is not the bank but the insurance partner
      • Product Orientation Seminars for bank staff and clients
    MINIMUM STANDARDS FOR ESTABLISHING PARTNERSHIPS
  • 14. SESSION 2 PARAMETERS FOR APPROVAL OF MICROINSURANCE PRODUCTS AND SUPPORT SERVICES FOR INSURERS With: MR. REY VERGARA Head of Actuarial Division Insurance Commission of the Philippines
  • 15. Parameters for Approval of Life Microinsurance Products Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Common Provisions
    • For Individual & Group Policies:
    • Approval of
    • Products by the
    • Insurance Commission
    • (IC)
    Applicable ( )
  • 16. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Maximum
    • Premium
    Not Applicable 5% of the current daily minimum wage rate in Metro Manila
    • Maximum
    • Benefit
    Not Applicable 500 times the daily minimum wage rate in Metro Manila
    • Grace Period
    31 days from premium due date 45 days from premium due date
  • 17. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Contestability
    • Period
    Maximum of 2 years from date of issue or last reinstatement of the policy Maximum of 1 year from date of issue or last reinstatement of the policy
    • Suicide Clause
    Maximum of 2 years from date of issue or last reinstatement of the policy Maximum of 1 year from date of issue or last reinstatement of the policy
  • 18. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Claims
    • Settlement
    Within 60 days after submission of complete documents Within 10 working days after submission of complete documents
    • Entire Contract
    • Clause
    • Misstatement of
    • Age
  • 19. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Deed of Undertaking
    • that:
      • the insurance
    • product complies
    • with the requirements
    • of the Insurance Code
    • and pertinent Circulars
    • and Guidelines by IC
  • 20. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • the company shall
    • be responsible for
    • any misrepresentation
    • and/or violation
    • committed by any of
    • its officers and/or
    • authorized representatives
    • in connection with the
    • application for approval of
    • the insurance product.
  • 21. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Additional Provisions
    • For Individual Policies:
    • Premium Default Options
      • Cash Surrender Value
      • Paid–Up Benefit
      • Automatic
      • Premium Loan
    • Reinstatement
    • Policy Loan
  • 22. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Additional Provisions
    • For Group Term Life Policies:
    • Evidence of Insurability
    • Conversion Privilege
  • 23. Legal Framework (Insurance Code /Implementing Circulars) Traditional Insurance Products Microinsurance Products
    • Additional Provisions
    • For Group Creditor Life Policies:
    • Evidence of Insurability
    • Death Benefit –
    • Payable to creditor to
    • extinguish indebtedness
    • and the balance if any to
    • the designated
    • beneficiary
  • 24. The contract for microinsurance product shall bear the microinsurance logo at the upper right hand corner thereof.
  • 25. Thank you...
  • 26. SESSION 3 OPTIONS FOR COST-EFFICIENT MICROINSURANCE TRANSACTIONS AND SERVICE DELIVERY ATTY. JOHN OWENS Chief of Party RBAP-MABS MR. TOMAS GOMEZ IV Vice-Chairperson RBRDFI With:
  • 27. MOBILE PHONE TRANSACTIONS FOR MICROINSURANCE FOR ENHANCED COST-EFFICIENCY
    • Insurance application / registration
    • Premium Payment
    • Availment notification
    • Claim settlement / pay-out
    • Client status inquiries
  • 28. VALUE OF MOBILE PHONE / SMS APPLICATION TO MI FOR RURAL BANKS
  • 29. Microinsurance Coverage Notification Microsinsurance Database Sa binayad mong P300 meron ka na ngayong insurance na halagang P50,000.  May proteksyon din ang 3 sa pamilya mo. Serbisyo snyo ng RB ABC & Eagle Insurance. Salamat! Insurance Company SMS Gateway Server
  • 30. Microinsurance Claims Status Inquiry Microsinsurance Database CLAIMSTATUS <space>Policy Number Claim for policy number XXX still pending Inusrance Company SMS Gateway Server
  • 31. RURAL BANK OF ABC RB ABC Microinsurance Claims Payout You have received 10000.00 from Eagle Insurance. Your new balance is 10000.00 Ref. no. 12345678
  • 32. GCash Merchant Application
    • Requirements:
    • Merchant Application Form
    • Batch Registration File
    • Proof of Valid ID
    • Valid ID ( SSS, Driver’s License, Passport et al.)
    • Proof of Billing
    • Business Permit
    • Articles of Incorporation / For Sole proprietorship- DTI Registration
    • By Laws and SEC Registration/ DTI application for sole proprietorship
    • Certificate of Registration for Cooperative
    • Secretary’s Certificate (2 copies, notarized)
    • Settlement Bank- Bank Account Details
    • OSP Form
    • Bank Statement
    • Latest Audited Financial Statements
    • Income Tax Return (Company ITR)
    • Non-Disclosure Agreement
    • Signed Terms and Conditions (MAF)
    • Sales Invoice
    • Marketing Conforme
    • Marketing / Sponsorship letter from client / partner
    • Email Address (for sending of g-cash transaction reports )
    • Partner Rates
    • Service Fees
    • Call 2882 or Send email to
    • [email_address]
  • 33. Smart Money Merchant Application Requirements 1. SMART Money Merchant Confirmation Form
2. Authorization to Auto Sweep
3. Authorized Representative Endorsement
4. Business Permit
5. By Laws
6. DTI Registration
7. Latest Audited Financial Statement
8. Remittance License
9. SEC Certificate / Board Resolution
10. SEC Registration Send email to merchantacquisition@smart.com.ph
  • 34. SESSION 4 FEEDBACK AND INFORMATION TRACKING FOR MICROINSURANCE PARTNERS With: RUTH ASERON Microinsurance Coordinator RBAP-MABS
  • 35.
    • For monthly submission
      • total number of rural banks covered
      • total number of rural bank branches covered
      • total number of individuals covered (principals and dependents)
      • number of male and female clients covered
      • types of coverage
    • For quarterly submission
      • claims ratio
      • claims rejection ratio
      • average claims duration
    AGGREGATE DATA REQUIRED FROM PARTNERS
  • 36. KEY PERFORMANCE INDICATORS
    • Is the product affordable?
        • Claims ratio = Claims (PhP) ÷ Premiums Collected (PhP)
    • Is the delivery of services efficient?
        • Claims timing = average days from event to claim
        • average days from claim to settlement
    • Is the policy understood and the procedures followed?
        • Claims rejection ratio = no. of claims rejected ÷ total no. of claims submitted
    • Have we optimized our reach?
        • Coverage ratio (penetration rate) = no. of insured ÷ no. in target market
  • 37.  
  • 38. Next Steps!!
    • Expeditious approval of microinsurance products
    • Appropriate training program for microinsurance agents designed in consultation with insurers and the industry association
    • Standards for effective conduct of product orientation training by commercial insurers for partner-agents
    • Batch trainings as cost-effective means to train on Basic Microinsurance and Product Orientation for MI Agents >> COORDINATE WITH PLIA ON THE PROGRAM DESIGN AND OTHER RESOURCE NEEDS FOR MICROINSURANCE PROMOTION
    • Generation of microinsurance AGGREGATE performance data by microinsurance agents and providers to facilitate product innovations >> REVIEW OTHER INDICATORS
    • Product innovations through efficient client feedback mechanisms and SMS-based transactions
  • 39. Thank You!!! For further questions: Email: [email_address] Mobile: 0917 – 881 0481 Website: www.rbapmabs.org