RBAP‐RBRDFI Microinsurance Ini4a4ve Reo Nore P. Pardilla RBAP 2011 RBAP‐MABS Regional Roundtable Conference Hya= Hotel & Casino, Manila November 9, 2011
The RBAP-RBRDFI Microinsurance Initiative: What’s Next For Rural Bank MI?Regional Roundtable MeetingReo Nore P. PardillaMicroinsurance Training OfficerRBRDFI
Relationship Structure Technical Funding Support Assistance Rural Bankers Rural Bankers Research Association of the and Development Philippines (RBAP) Foundation, Inc. (RBRDFI) MI Basic MI Product MI Agent Technical Assistance & Training Development & Enhancement Licensing Research Member – Rural Banks
TARGETS 7 rural banks licensed as MI Agents 100 or more rural banks with 297 staff trained 1,000 or more branches and OBOs licensed as MI agents 145 Rural Banks trained in Basic MI IC approval of RBAP-RBRDFI 1,000,000 or more as MI Training Provider microenterprise clients and 13 Pilot 3,000,000 of their household Banks members covered byMicroinsurance Innovation microinsuranceFacility Grant
The Target Market of MICRO+Insurance Microﬁnance Borrower Microﬁnance Depositor Low-income client of the Rural Bank BSP Memorandum 027-2011 redeﬁnes microﬁnance clients to include any existing client classiﬁed by the bank as low-income or with an average annual household income of PhP206,000 or less.
THE RBAP MI TRAINING COURSEKey Modules: 1. Fundamental concepts and principles of MI 2. MI Regulations in the Philippines 3. Effective Marketing of MITraining Approaches: 40 % Lecture 25 % Group Discussions 35 % Games & Simulation Exercises
GROUP DISCUSSIONS RBAP MI Training Approaches Allows for sharing of ﬁeld lessons and practical insights Typically interactive and open Employs Case Studies
GAMES SIMULATION ACTIVITIES RBAP MI TRAINING APPROACHES Understanding MI: Barangay Bigkis (localized Treasure Pot game) Ang MI ay parang … (Microinsurance is like) Bahay-Buhay-Bagyo ( house-life-storm ) Marketing Selling MI: The Mystery Object D-I-G Tactic (Discover Interests then Get solutions)
MI PRODUCT COMMONLY OFFERED Hospital Confinement Benefit Rider Accidental Burial Medical Assistance Reimbursement Rider Rider Accidental TERM LIFE Fire AssistanceDeath Benefit INSURANCE Rider Rider
MI COVERAGE FOR THE FAMILYMARRIED MEMBERS: SINGLE MEMBERS:Principal Insured Principal InsuredSpouse Parent 1Child 1 Parent 2Child 2 Sibling 1Child 3 Sibling 2PREMIUM: P200 – P 500 / YEAR
RESULTS: (as of Oct RESULTS TO DATE 2011)# of Banks in Approval Process 45# of Banks Approved as MI Agents 7
Compliance Process ASSEMBLE CHOOSE SUBMIT TRAIN REQUEST requirements In MI Basic + For BSP No your MI your to RBAP-Product Mastery Objection Notice Team partner well RBRDFI RBAP-RBRDFI will be the one to coordinate submission of rural banks licensing requirements to the Insurance Commission and then the BSP.
CHALLENGES RURAL BANKS FACE CHALLENGES RBAP’s RESPONSE Process ﬂow in procuring licensing RBAP worked together with the regulatorsrequirements takes the bank too long to to clarify rules and develop expeditiousprocure process Challenge in determining which is the best RBAP provide parameters on how tomicroinsurance provider to work with determine the best insurance provider in terms of product, service and delivery Minimal information about microinsurance Provided trainings to rural banks on how to efﬁciently service microinsurance to Trained staff is not automatically assigned rural bank clientsas MI soliciting ofﬁcer Re-training of Bank Staff who would be appointed as new MI Soliciting Ofﬁcer. Educate the bank for the disadvantages of this set up.
WHAT CLIENTS THINK ARE THE MOST IMPORTANT INCIDENTS TO PREPARE THE FAMILY FOR Death due to accident 19% Destruction of property / assets 9% Burial expense in case of death in the family 8% Sudden loss of income due to hospitalization 18% Hospitalization 25% Destruction of crops due to ﬁre, ﬂood, typhoon, etc 12% Death due to illness 4% Education 1% Others 3%Based on RBAP-MABS Survey as of 2010
RISK EVENTS THAT OUR CLIENTS ARE MOSTVULNERABLE TO: Sudden illness in the family while lacking the ﬁnances to access appropriate medical care Calamities that destroys their livelihood and property
Size of the Rural Bank Micro- Market Type of MF Accounts Number (as of December 2010) Microﬁnance Loans Approx. 800,000 Micro-Deposits 4,941,445 (86%) ** Estimated Household Members 15,000,000**Source: Philippine Deposit Insurance Corporation
OFFICIAL WEBSITE FOR RBRDFI MICROINSURANCE Contents News and Updates Microinsurance Training Courses Microinsurance Products and Microinsurance Providers Downloadable Forms Partners Regulatory Issuances
FOR RURAL BANKSThe website contains: List of Microinsurance Providers Product Proposal Request Form to Microinsurance Providers Summary of microinsurance products offered News and updates about Microinsurance Downloadable Forms for Licensing and Accreditation Training Schedule
The website contains: Company Proﬁle and Product Information for a cost – efﬁcient advertisement List of Trained Banks by RBRDFI Downloadable Forms that can be shared with rural bank partners Training Schedule
RBAPSERVICES Discussion with Regulators for service enhancements and monitoring service quality Education / Training to Rural Banks RBAP’sAssistance and Services toMicroinsurance Technical Assistance and Research Promotion of access to information that may enhance MI product design and service provision
THANK YOU Ruth B. AseronReo Nore P. Pardilla Ghay Lyne P Mapano Microinsurance CoordinatorMicroinsuranceTraining Ofﬁcer Microinsurance Project Coordinator RBAP - MABSRBAP - RBRDFI RBAP - RBRDFI Email:firstname.lastname@example.orgEmail:email@example.com Email:firstname.lastname@example.org