This presentation was delivered by Ms Maria Anna Ignacio (Executive Director at KDCI/ KMBA, The Philippines) at the ICMIF-AOA Development Network Seminar (18-20 September 2013; Manila, The Philippines)

1. Developing an inclusive policy on Microinsurance regulation:
A Case Study of the Philippines

2. Malinaw at
nakasulatangmgapaniniwala,
patakaran, proseso, targets,
inaasahan
Partners:
paglalambatngmgaugnayansai
banginstitusyon/
grupoupangmakapagbiigayng
maramingserbisyo.
KASAGANA-KA: Kabuhayan Tungo sa Ganap na Kasarinlan
By 2016, urban poor communities in 30 field sites have vibrant social and economic infrastructures supportive of
livelihood enterprises and social protection services.PHOTOSKDCI in 2016 - Framework - English edited.pdf
VISION
Philippine urban poor communities
thriving amid vibrant social and
economic infrastructures reflecting the
members’ adequate livelihood
activities, inclusive development
opportunities, support for each other,
and value for human rights.
MISSION
A social development organization
upholding service as its core business
and delivering hope, guidance, and
opportunities in improving the social
and economic well-being of urban poor
women, along with their families and
their communities
Pledge of Commitment to KASAGANA-KA
In the presence of my fellow members and
peers, and in the name of my family,
I Pledge that to give my best in becoming and
being a worthy and exemplary member
of Kasagana-Ka
To be diligent in performing all my tasks,
To be persevering in reaching my and my
group’s goals,
To be a prudent and trustworthy steward of
my and others’ wealth,
To be sympathetic to those who are in need,
To be helpful and caring of others at all times,
And above all, to be faithful and true to myself,
to my family, and to my fellow members
So help me God.
STRATEGY
Microfinance is the main vehicle through
which the niche market (urban poor
women) is reached and offered bundled
services, which are constantly being
improved and expanded as a result of
organizational development, consortium-
building, and networking with other
stakeholders
Client-
Beneficiary
Her
Family
Our Mother-
Client’s
Community
Structures
Systems
Skills and
Expertise
Values
Resources
Effective and Efficient Organization
Sufficient Resources, Skills, and Development of Core Values
The client-beneficiary undergoes personal development—
improving her self-confidence, deciding for herself, and becoming
empowered.
Community members areactively engaged in investing in the
improvement of their well-being and quality of life through their
flourishing economic enterprises, sufficient social protection and
services, and satisfactory peace and order.
Mother-client’s family is healthy,
happy, and harmonious
The structures and systems ensure that programs, products, and services reach the client-
beneficiaries in the most creative, effective, and efficient manner.
The structures and systems
are functioning well,
resulting in an organization
that is cohesive and
harmonious.
Vision-mission, strategy,
objectives, targets, core
values, policies, and
processes are discussed,
clear, owned, and written
up.
There are clear metrics for
selection and performance
in all levels of the
organization (board,
employees, client-
beneficiaries, andpartners)
Financial Status: Resources
are sufficient for the
implementation of
programs and delivery of
services
Skills and expertise of the
employees are honed and
developed
Other Resources are
adequate (hardware,
software, space,
materials) and being used
optimally
The resources of her family are
adequate for the members’ needs
(food, education, housing, health, and
security)
Partners: Networking is
pursued so that programs,
products, and services are
improved and expanded
Commitment to the organization and its
client-beneficiaries is developed, along with
dedication to service to the disadvantaged
Welfare and economic situation of
employees are also improving

6. GOALS
MISSION
VISION

7.  Basic Life Insurance Plan
 Credit Life Insurance Plan
 K-Kalinga
Accidental Life Insurance with Fire Assistance
(underwritten by Bankers Assurance-MalayanGroup)

8. Study &
Set-up
2005
Survey of
members
2006
Actuarial study,
SEC registration
2007
Lobbied and
received IC license
Learning
Phase
2008
Increased in MFI CBs due to
insurance program
2009
Cleaned database of
inactive members
Partnering
Phase
2010
Development of
consortium strategy
2011
New mgt Leaders; full
implementation of
consortium strategy
New
Products
Phase
2012
CLIP implementation and tie-up
with private insurer
2013
Product review
and development

9. Operations Highlights
(As of June 2013)
Total Members 36,114 or 140,000 lives
Premium Contribution Php 81,270,631.10
Total Assets Php 80,349,027.44
Retirement Fund Php 16,850,971.62
Total Claims Paid Php 11,226,599.39
Number of Claims
935
(372 members;
563 dependents)

10. 2006 2007 2008 2009 2010 2011 2012
Active Clients 8,544 11,099 15,083 15,537 17,800 18,370 20,119
0
5,000
10,000
15,000
20,000
25,000
KDCI Active Client-Beneficiaries
K-MBA
Members
12,237 21,358 17,037 17,802 24,152 35,719

11. 2007 2008 2009 2010 2011 2012
Number of Members 12,237 21,358 17,037 17,802 24,152 35,719
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Number of K-MBA Members
Decrease
due to data
clean-up
Consortium/Associate
Members
0 0 0 0 4,416 11,210

12. 0
50
100
150
200
250
2007 2008 2009 2010 2011 2012
Number of Claims (Aggregate)
0
50
100
150
2007 2008 2009 2010 2011 2012
Member Dependent

13. Indicators As of Sept 2012
1. Solvency Ratio (Standard: > 120%) 139.72% 
2. Return on Equity (Standard: > 0) 9.03% 
3. Return on Net Premium (Standard: > 0) 14.61% 
3. OPEX (Standard: <20%) 21.30% 
4. Retention Rate (Standard: > 70%) 80.81% 
5. Participation Rate (Standard: > 90%) 105.65% 
6. Payout Ratio (Standard: < 25%) 15.20% 
7. Growth Rate 132.87% 
8.Time to Payout (Standard: 1-3-5) 99.00% 

14. KDCI
Microfinance
provides the
social
infrastructure
K-MBA
Social
Protection
thru insurance
Other
Services: K-
EEPF
Other Services
with Partners
in Health
Other Services
with Partners
in
Government
Dependent yet
Distinct and
Autonomous Financially Sustainable
Socially Responsible

15. towards inclusion...not suppression...not alienation

16.  Challenging the Limits ofWhat Is
 What is the appropriate accounting system to
measure the double bottom line? New metrics?
 There has already been forward movements in the
discourse on microfinance yet the principles and
definitions have not permeated existing and
newly introduced rules and regulations.
 MFI-MBAs are not simply insurance providers; the
push for more benefits to its members

17. Assessment of Microinsurance as Emerging Microfinance
Service for the Poor:The Case of the Philippines
Asian Development Bank 2013
...there is a need to come up with
more defined rules and regulations
for the operations of microinsurance
MBAs.This is to ensure
standardization of operations and
practices for prudential purposes.
Such rules should be able to address
(i) protection of members, (ii) fit and
proper rule for MBA governance, (iii)
prudential requirements, and (iv)
market conduct guidelines.
standardization
towards
prudential
purposes
some quotes
from...

18.  Challenging the Limits ofWhat Is
 Standardization should also allow for the
differences in the size of MBAs and its mother
organization, the MFIs.
 Risk-based supervision is most welcome;
appreciate it from the perspective of the clients,
visit our centers

19.  Getting Our ActTogether
 Translation and Implementation Difficulties –
agency heads as champions of the inclusion
agenda but staff fail to translate and implement
 Government agencies need better coordination,
the case of SEC and the DOF-NCC
 Shared terminologies, definitions, principles
 One-stop mechanism for MFIs-MBAs

20. Assessment of Microinsurance as Emerging Microfinance
Service for the Poor:The Case of the Philippines
Asian Development Bank 2013
Establish an appropriate enabling
policy and regulatory environment
Government should own and
champion the reform
measures...ensure that concerned
government agencies (e.g., DOF–
NCC, Insurance Commission) are
convinced of and own the policy and
regulatory reform agenda.
government
should own and
champion its
reform agenda
some quotes
from...

21.  Beyond Good and Right,The Call for Magis
 Continuing education of partners and clients
 Continuing learning and improvements in MFI and
MBA systems and processes
 Stewards of resources: weighing priorities and not
losing sight of higher values and goals

22. Assessment of Microinsurance as Emerging Microfinance
Service for the Poor:The Case of the Philippines
Asian Development Bank 2013
The availability and use of
technology (e.g., mobile phones,
chip cards, and netware) and
technology-based solutions to
bring down costs, improve product
value to policyholder, and cover
more microinsurance clients
provide great potential for
increasing microinsurance reach.
affordable and
helpful
technology?
some quotes
from...

23.  When Prudence Kills Innovation and
Compassion
 The very strength of smaller organizations is its
quickness to innovate and be close to its clients;
the challenge to maintain its strength in the midst
of the call for more complexity and sophistication
 Those who follow the regulations are the
conscientious ones while those under the radar
gets away...

24. Assessment of Microinsurance as Emerging Microfinance
Service for the Poor:The Case of the Philippines
Asian Development Bank 2013
Unfortunately, both the SEC and the
CDA26 have not yet come up with
supervisory mechanisms that will
enable them to determine when an
entity under its jurisdiction is
engaged in informal insurance
schemes. Also, while the circulars
clearly provide for sanctions, the
operational mechanisms by which
such sanctions shall be implemented
are yet to be established within the
relevant regulatory agencies...
supervisory
mechanisms?
operational
mechanisms
within relevant
regulatory
agencies?
some quotes
from...

26. Funds management
Dealing with regulatory
bodies and other government
agencies
Governance and stewardship

27.  Network as shared-service provider
 Development of standard metrics
 Benchmarking as a tool for
continuing development (local and
international)
 Partnerships with public and private
business sector

28.  Retirees as resource pool of experts
and advisers
 Children of members as successor
generation
 Development of diploma and
certificate courses needed for MBA-
MI

29.  Proper Selection of Leaders and
Managers
 Rooted in Service and Stewardship
 Regular training and formation (in-
house and from the network)
 Formal sessions
 Mentoring
 Exposure, exchanges
 Conferences

30.  Volunteer-Experts
 Partnerships and networking
 academe
 NGO networks
 Government agencies
 Business groups

31. The members of
the Board of
Trustees of
Kasagana-ka
MUTUAL
BENEFIT
ASSOCIATION
Thank you for your
attention