I was in South Africa representing my organization, CARD MRI, in a global microfinance forum when Typhoon Haiyan struck on Nov 8.
As OF April 2014 Number of Clients: 2,328,825 (86.5% contribution in the MFI outreach in the country or 46.58% contribution to Poverty Reduction)
Number of Insured Individuals: 9,582,945 (20% contribution in the overall insured Filipinos)
As the extent of damage began to unfold, my thoughts went to our staff and clients in the heavily affected areas of Leyte and Samar. My second concern was how CARD MBA, CARD MRI’s life insurance arm, and CaMIA, CARD MRI’s non life insurance company, will have to do to cope with a climate change-induced catastrophe such as this.
Clients of CARD financial institutions and their dependents are automatically enrolled in the microinsurance program for as low as $1.40 per month (basic life, credit life) while a premium of $5.70 per year insures the client with CaMIA Paid Plan.
The sharp spike in the number of affected families illustrates the risk and uncertainties that a Super Typhoon such as Haiyan can do to microinsurance providers like CARD and their clients. In the Philippines, floods and storms are the most frequently occurring hazards as a result of its geography. Due to its geology, my country is susceptible to earthquake, tsunami and landslides. From 1997 to 2007, 84 tropical storms/typhoons visited the Philippines that resulted to varying degrees of damages. Haiyan was called the strongest typhoon in the world, and 5 days in its aftermath, Time reported 1,774 people were confirmed dead, 11.3 million people were affected by the storm; 2.5 million people need food aid; 800,000 people have been displaced; and the government said nearly 300,000 pregnant women or new mothers need food assistance (Time Nov 12, 2014).
At CARD, 304 bank and NGO units were affected, with 179,388 members. Fatalities totaled 326 while declared missing were 170 members and dependents. The number of affected families by Typhoon Haiyan represents 56% of total victims for the Year 2013.
Assistance provided to Haiyan Victims: Immediate Formation of CARD MRI Disaster Response Team Implementation of 1-3-5 Model on insurance claims- Members: 94.58% Paid within 1-3-5-day Target; Legal Dependents :92.28% Paid within 1-3-5-day Target . CARD MBA paid out $228,287 , 82% for basic life (balance is for refund of contribution and credit life) while CaMIA paid out $1,892,785 of which 99% is for re-house (balance is for personal accident and funeral benefits).
CDRAP (CARD Disaster Relief Program): $1.6M worth of family pack containing food and medicines distributed Rehabilitation Loan Loan Moratorium
Immediate Resumption of CARD MRI Operations Partnership with other institutions MIDAS Resiliency Fund Project Bagong Araw Resource Mobilization Donation Drive Dugtong Buhay Project Provision of Special Calamity Loan to rebuild houses and sources of livelihood Livelihood Trainings Luntiang Bukid ni Inay Community Health Days Stress Debriefing
To mitigate risks in the future, CARD MRI will implement Disaster Preparedness Module for Clients and Staff
Setting-up of Resiliency/Rehabilitation Fund
Promotion of CaMIA PAID Plan (disaster housing insurance)
Promotion of Business Interruption Insurance
Strengthening CARD MRI Partnership with Local Government
Producing Actionable Information: The CARD MRI Experience
Information: The CARD
By: Dr. Jaime Aristotle B. Alip
CARD MRI Founder/ Managing Director and
Chairman, ICMIF Development Membership Committee
30 June 2014
Understanding Risk Forum, London, UK
Building Community Resilience
Implementation of 1-3-5 Model on insurance claims
Immediate Resumption of CARD MRI Operations
• Rehabilitation Loan
• Loan Moratorium
• Livelihood Training
• CwE – Disaster Preparedness and Health
• Community Health Days
• MIDAS Resiliency Fund
Handling Risks and Uncertainties
CARD MRI is addressing the need for
-Reinsurance for basic life insurance of legal
-Reinsurance for credit life
-New product development
•Information provided by clients, ie age, health status
•Characteristic of the market
•Operational data – ie number of members, claims
•Microinsurance industry in the Philippines is still
in its developing stage thus there is very limited
historical data on risks
• Macro-level data , ie meteorological, health
costs, demographics not easily obtainable from