RBAP-MABS Microinsurance for Microenterprise Clients nov08


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Presentation on the RBAP-MABS initiative on Microinsurance for Microenterprise Clients of RBs (RRT Luzon_Nov1708)

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RBAP-MABS Microinsurance for Microenterprise Clients nov08

  1. 1. Regional Roundtable Meeting for MABS Participating Banks November 5 & 17, 2008 MICROINSURANCE ACCESS through Rural Banks OPTIMIZING THE BANK’S DOUBLE BOTTOM-LINE: QUALITY SERVICE + PROFITABILITY
  2. 2. MICROINSURANCE FOR THE POOR? REGERIO ARREZA RB Microfinance Client Health Insurance Subscriber
  3. 3. Client Demand for Microinsurance <ul><li>In times of unexpected illness or hospitalization, clients were forced to: </li></ul><ul><ul><li>borrow money (20%) </li></ul></ul><ul><ul><li>use their savings (44%) </li></ul></ul><ul><ul><li>use money intended for loan payments (10%) </li></ul></ul><ul><ul><li>use their income from their business (35%) </li></ul></ul><ul><li>Among the clients who have no insurance, 60% would like to purchase insurance with coverage for their family </li></ul><ul><li>Of those without insurance, 31% cited affordability as a barrier to purchasing one </li></ul>Based on the February 2008 MABS Capability Building Needs Survey
  4. 4. We support the Insurance Commission’s vision and mission to: <ul><li>Establish the Philippines as the Microinsurance Capital of Asia </li></ul><ul><li>Provide access to insurance for </li></ul><ul><li>40% of Filipinos by 2010 </li></ul>
  5. 5. Insurance PENETRATION RATES Source: ADB Asian Bonds Online Penetration in % GDP = Total Insurance Premium/GDP (1995 - 2006) <ul><li>Insurance penetration rates in the Philippines remain low with insurance premiums representing only 1.49% of GDP </li></ul><ul><li>According to a 2008 study by RIMANSI, of the 54.1 million adults in the country: </li></ul><ul><ul><li>Only an estimated 2.9M (5.4%) are able to access microinsurance </li></ul></ul><ul><ul><li>only 1.7M (3.1%) are reached by formal insurance providers </li></ul></ul><ul><ul><li>an estimated 840,000 adults (1.56%) have been able to access formal microinsurance through rural banks, commonly through the banks’ compulsory credit life insurance services </li></ul></ul>Asian Markets Insurance Penetration (in %) KOREA 11.31 JAPAN 10.53 HONG KONG 10.45 SINGAPORE 8.15 MALAYSIA 4.8 THAILAND 3.45 CHINA 2.68 PHILIPPINES 1.49 INDONESIA 1.33
  6. 6. Availability of Microinsurance Types of Formal Insurance Offered by Rural Banks Based on the February 2008 MABS Capability Building Needs Survey
  7. 7. Benefits to the RURAL BANKS <ul><li>Client retention </li></ul><ul><ul><li>Quality services >> Customer satisfaction >> Customer Loyalty </li></ul></ul><ul><li>New client acquisition </li></ul><ul><ul><li>Value-driven insurance services >> Effective demand >> Increase in Bank Clients </li></ul></ul><ul><li>Improved Transparency and Legitimacy </li></ul><ul><ul><li>Proper accounting of transactions >> More effective monitoring of growth or areas for improvement </li></ul></ul><ul><li>Increased Profitability </li></ul><ul><ul><li>Expanded finance services through microinsurance >> Service Fees >> Additional sources of revenues for the bank </li></ul></ul>
  8. 8. Formal Models for Microinsurance Provision
  9. 9. The PARTNERSHIP MODEL Provider Delivery Channel Target Market Market Information CLIENTS’ Feedback Microenterprise Clients Licensed Insurers RBAP-MABS Rural Banks
  10. 10. Microinsurance web portal HOME PAGE Why Microinsurance for RBs? The partner-agent model OVERVIEW NEWS & UPDATES Success Stories Monthly MABS highlights INSURANCE PRODUCTS Overview of MABS 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
  11. 11. Key Product Features <ul><li>AFFORDABILITY </li></ul><ul><ul><li>Low premiums and ease of payments </li></ul></ul><ul><li>REASONABLE COVERAGE </li></ul><ul><ul><li>For bank clients and riders for spouse and dependents </li></ul></ul><ul><li>SIMPLICITY </li></ul><ul><ul><li>Easily understandable contract and quick claim settlement </li></ul></ul>
  12. 12. Partner Insurance Providers for the RBAP-MABS Microinsurance Initiative
  13. 13. Insurance Partners <ul><li>LIFE </li></ul><ul><ul><li>Ayala Life Assurance Incorporated </li></ul></ul><ul><ul><li>Country Bankers Life Insurance Corp. </li></ul></ul><ul><ul><li>PhilAm Life Corp. </li></ul></ul><ul><ul><li>United Coconut Planters Life Assurance Corp. </li></ul></ul><ul><li>NON-LIFE </li></ul><ul><ul><li>Malayan Insurance Company, Inc. </li></ul></ul><ul><ul><li>Country Bankers Insurance Corp. </li></ul></ul><ul><li>INSURANCE INTERMEDIARIES </li></ul><ul><ul><li>Assistance Alliance International Inc </li></ul></ul><ul><ul><li>CARD MRI Insurance Company </li></ul></ul><ul><ul><li>MicroInsurance Agency of the Phiippines </li></ul></ul>
  14. 14. RBAP-MABS: coordinating its efforts with the Insurance Commission and the Bangko Sentral ng Pilipinas
  15. 15. Policy Advocacy <ul><li>OBJECTIVE: </li></ul><ul><ul><li>RBs to facilitate increased access to microinsurance services by: </li></ul></ul><ul><ul><li>Dissemination of product information for various partner-insurance companies </li></ul></ul><ul><ul><li>Distribution of insurance applications (group and individual) </li></ul></ul><ul><ul><li>Collection of premiums </li></ul></ul><ul><ul><li>Gathering of client feedback on insurance products and services </li></ul></ul>
  16. 16. SERVICE + PROFITABILITY MICROINSURANCE RUTH ASERON MABS Microinsurance Coordinator [email_address] 02 – 400 0940 0917 – 8810481 Thank you!