Emerging Trends in Microinsurance:  Prospects and Challenges Dr. Jaime Aristotle B. Alip Founder and Managing Director, CA...
Geared Toward Reaching A Total Of One Million Members By 2009 CARD MUTUALLY REINFORCING INSTITUTIONS CARD MUTUALLY  REINFO...
Partnership Program in Hongkong since 2007 More than 681 Offices all over the Philippines since1986 Partnership Program in...
Microfinance Industry Data   <ul><li>No. of Poor Household  - 5M </li></ul><ul><li>Total Outreach  - 2.7M </li></ul><ul><l...
CARD MRI Performance as of December 2008  <ul><li>Operations Update </li></ul><ul><li>Total No. of Clients Served for the ...
CARD MRI Performance as of December 2008 <ul><li>Financial Update </li></ul><ul><li>Total Assets     P 4,907,625,973 </li>...
<ul><li>Banks/FIs establishing Microfinance Units; and, </li></ul>2.  Banks/FIs establishing NGO/MFI; <ul><li>NGO transfor...
* Slide from Mr. Jody dela Cruz
* Slide from Mr. Jody dela Cruz
<ul><li>Lack of Capital - From Non-profit to Profit Model </li></ul><ul><ul><li>Reasonable interest rates </li></ul></ul><...
<ul><li>b. Lack of Capacity - Use of best practices from the business world to scale-up  </li></ul><ul><ul><li>manualizati...
<ul><li>c. High cost of delivering microfinance - Use of Technology  </li></ul><ul><ul><li>Computerization </li></ul></ul>...
<ul><li>MFI’s market saturation in urban areas - nearing perfect market </li></ul>Market Behavior <ul><li>Establishment of...
<ul><li>BEFORE </li></ul><ul><li>Loans (productive, emergency) </li></ul><ul><li>Savings / CBU (compulsory) </li></ul>Prod...
<ul><li>Financial Institutions </li></ul><ul><li>Shorter loans / tenors; </li></ul><ul><li>Cutting back on commitments; </...
<ul><li>Clients </li></ul><ul><li>Lower loan needs </li></ul><ul><li>Sluggish business activities  </li></ul><ul><li>Incre...
<ul><li>MFIs </li></ul><ul><li>Loanable funds from commercial and international funds are smaller </li></ul><ul><li>Mainta...
CONTINUOUSLY PUSHING FRONTIERS @ 20 Thank you! CARD MRI
Upcoming SlideShare
Loading in …5
×

Emerging Trends in Microinsurance: Prospects and Challenges

1,275 views

Published on

Dr Alip, Founder and Managing Director of the Center for Agriculture and Rural Development
Mutually Reinforcing Institutions (CARD MRI), presents the emerging trends in microinsurance and the challenges in the future (Jan 29, PACAP's Community Development Forum- Microfinacne amdist the Global FInancial Crisis.)

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,275
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
45
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Emerging Trends in Microinsurance: Prospects and Challenges

  1. 1. Emerging Trends in Microinsurance: Prospects and Challenges Dr. Jaime Aristotle B. Alip Founder and Managing Director, CARD MRI January 29, 2009 Philippines-Australia Community Assistance Program
  2. 2. Geared Toward Reaching A Total Of One Million Members By 2009 CARD MUTUALLY REINFORCING INSTITUTIONS CARD MUTUALLY REINFORCING INSTITUTIONS (CARD MRI) as ONE 2007 2007 CARD BDS 2006 2005 1999 1997 1986
  3. 3. Partnership Program in Hongkong since 2007 More than 681 Offices all over the Philippines since1986 Partnership Program in Indonesia since February 2008 First International NGO Office in Cambodia since 2006 Partnership Program with TYM in Vietnam since 2005 Geographical presence of CARD MRI Establish-ment of an NGO office in Laos starting 2009
  4. 4. Microfinance Industry Data <ul><li>No. of Poor Household - 5M </li></ul><ul><li>Total Outreach - 2.7M </li></ul><ul><li>- NGOs (1.6M) </li></ul><ul><li>- RBs (0.8M) </li></ul><ul><li>- Coops (0.3M) </li></ul><ul><li>20% Double Counting - 2.2M </li></ul><ul><li>Total Outstanding loans - P16B </li></ul><ul><li>- NGOs (P6.5B) </li></ul><ul><li>- RBs (P8B) </li></ul><ul><li>- Coops (P1.5B) </li></ul><ul><li>* out of P30B </li></ul><ul><li>MCPI, Dec 2008 </li></ul>
  5. 5. CARD MRI Performance as of December 2008 <ul><li>Operations Update </li></ul><ul><li>Total No. of Clients Served for the Year 849,553 (31.46% ) </li></ul><ul><li>No. of Active Members including Savers 706,890 (26.18%) </li></ul><ul><li>No. of Active Clients with Loans 684,756 (25.36%) </li></ul><ul><li>No. of Insured Persons 3,423,780 </li></ul><ul><li>Amount of Loans Disbursed P 8,773,800,924 </li></ul><ul><li>Amount of Loans Outstanding P 2,804,993,921 (17.53% ) </li></ul><ul><li>Amount of Savings P 1,616,623,794 </li></ul><ul><li>Repayment Rate 99.49% </li></ul><ul><li>No. of Staff 4,102 </li></ul><ul><li>Employees 3,659 </li></ul><ul><li>Coordinators 443 </li></ul><ul><li>No. of Offices 681 </li></ul><ul><li>Branches 430 Partners 2 </li></ul><ul><li>Office Units 219 Provincial Offices 13 </li></ul><ul><li>Head Offices 6 MRI Office 1 </li></ul><ul><li>BDS Office 1 Liaison Office (Cambodia) 1 </li></ul><ul><li>BOAT Partners 5 Partnership Office (Vietnam) 1 </li></ul><ul><li>PT TPR-CARD (Indonesia) 1 </li></ul><ul><li>XpressMoney-CARD (Hongkong) 1 </li></ul>
  6. 6. CARD MRI Performance as of December 2008 <ul><li>Financial Update </li></ul><ul><li>Total Assets P 4,907,625,973 </li></ul><ul><li>Total Liabilities P 3,899,029,597 </li></ul><ul><li>Total Equity P 1,008,596,376 </li></ul><ul><li>Operational Self-Sufficiency 116.14% </li></ul><ul><li>Financial Self-Sufficiency 105.00% </li></ul><ul><li>Return on Assets 4.34% </li></ul>
  7. 7. <ul><li>Banks/FIs establishing Microfinance Units; and, </li></ul>2. Banks/FIs establishing NGO/MFI; <ul><li>NGO transforming into Banks/FIs; </li></ul>Emerging Business Models 4. Mutually Reinforcing Institutions Approach (NGO, Bank, MBA, Training Institute).
  8. 8. * Slide from Mr. Jody dela Cruz
  9. 9. * Slide from Mr. Jody dela Cruz
  10. 10. <ul><li>Lack of Capital - From Non-profit to Profit Model </li></ul><ul><ul><li>Reasonable interest rates </li></ul></ul><ul><ul><li>High dividends to investors (social and commercial investors) </li></ul></ul><ul><ul><li>Financial Investment.. commercial loans, securitization, bonds </li></ul></ul>Overcoming 3 C’s of Microfinance Ref: SKS Microfinance’s Vikram Akula interview, May 1, 2008 in India Knowledge@Wharton
  11. 11. <ul><li>b. Lack of Capacity - Use of best practices from the business world to scale-up </li></ul><ul><ul><li>manualization, simplification, standardization (from 1,000 clients to millions) </li></ul></ul><ul><ul><li>McDonalds, Jollibee, Starbucks </li></ul></ul>Overcoming 3 C’s of Microfinance Ref: SKS Microfinance’s Vikram Akula interview, May 1, 2008 in India Knowledge@Wharton
  12. 12. <ul><li>c. High cost of delivering microfinance - Use of Technology </li></ul><ul><ul><li>Computerization </li></ul></ul><ul><ul><li>Mobile banking (internet, cellphones) </li></ul></ul><ul><ul><li>ATMs </li></ul></ul>Overcoming 3 C’s of Microfinance Ref: SKS Microfinance’s Vikram Akula interview, May 1, 2008 in India Knowledge@Wharton
  13. 13. <ul><li>MFI’s market saturation in urban areas - nearing perfect market </li></ul>Market Behavior <ul><li>Establishment of Credit Bureau </li></ul>
  14. 14. <ul><li>BEFORE </li></ul><ul><li>Loans (productive, emergency) </li></ul><ul><li>Savings / CBU (compulsory) </li></ul>Products / Services <ul><li>NOW </li></ul><ul><li>Loans (productive, emergency, housing, non-traditional energy) </li></ul><ul><li>Savings / CBU (flexible), remittance </li></ul><ul><li>Agri-microfinance </li></ul><ul><li>Microinsurance (MBA / Agent Model) </li></ul><ul><li>Credit with Education </li></ul>
  15. 15. <ul><li>Financial Institutions </li></ul><ul><li>Shorter loans / tenors; </li></ul><ul><li>Cutting back on commitments; </li></ul><ul><li>Require guarantees / higher transaction cost; and, </li></ul><ul><li>Require hard currency loans from international funders. </li></ul>Global Financial Crisis
  16. 16. <ul><li>Clients </li></ul><ul><li>Lower loan needs </li></ul><ul><li>Sluggish business activities </li></ul><ul><li>Increasing number of potential clients (returning OFWs, displaced workers especially in the economic zones) </li></ul>Global Financial Crisis
  17. 17. <ul><li>MFIs </li></ul><ul><li>Loanable funds from commercial and international funds are smaller </li></ul><ul><li>Maintaining near perfect repayment rate of clients can be a challenge </li></ul><ul><li>Profitability is now a challenge </li></ul>Global Financial Crisis
  18. 18. CONTINUOUSLY PUSHING FRONTIERS @ 20 Thank you! CARD MRI

×