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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. THANK YOU!