Managing Director Zaldy W. Pacificar of Katipunan Bank shares the bank experience on providing microinsurance products and services to their clients during the 2012 RBAP-MABS National Roundtable Conference on June 8.

1. Session
7:
Transforming MI from Service to Business
The
Ka'punan
Bank
Experience
Zaldy Pacificar
Managing
Director
2012 RBAP-MABS National Roundtable Conference
June 7-8, 2012
Hyatt Hotel & Manila

2. Passing
on
the
risks
Zaldy
Wong
Pacificar
June
8,
2012,
Hya=
Hotel,
Malate,
Manila

3. Ka@punan
Bank
• Organized
by
Businessman
Gregorio
P.
Alano
and
his
wife,
Mrs.
Bienvenida
T.
Alano
in
1978
to
provide
Financial
services
in
the
municipality
of
Ka@punan,
Zamboanga
Del
Norte.
• On
January
29,
1979,
Bangko
Sentral
ng
Pilipinas
(BSP)
authorized
“Rural
Bank
of
Ka@punan
Inc.”
to
open
its
doors
to
the
public
• Consolidated
with
Plaza
Rural
Bank
of
Carcar,
Cebu
on
2008
• A[er
consolida@on,
“Rural
Bank
of
Ka@punan
Inc.”
changed
its
name
to
“Ka@punan
Bank
(ZN)
Inc.”
• Has
more
than
1
billion
resources
as
of
May
31,
2012
• Has
a
camel’s
ra@ng
of
4
(BSP
Examina@on
for
the
year
2011)
• Has
more
than
200,000
clients,
42,000
of
whom
are
Microfinance

4. KB
Mutual
Benefit
Associa@on
Inc.
(KB-­‐MBAI)
• Approved
by
SEC
on
September
8,
2008
• Approved
by
IC
on
October
20,
2009
• Organized
by
Ka@punan
Bank
Inc.
as
its
primary
Microinsurance
provider
• Offered
Life
insurances
to
KB’s
MI
clients
(Dependents
not
covered)
• Ini@ally
offered
health
benefits
to
both
the
Principal
&
their
dependents.
• Stopped
offering
health
benefits
in
2011
due
to
Fraudulent
claims
• A[er
3
years
of
opera@on,
the
associa@on
is
being
dissolved

5. The
Lessons
1.)
50%
of
the
premium
the
client
paid
is
returned
as
an
equity
of
the
payor
a[er
resigning
from
the
associa@on.
2.)
Health
insurance
has
high
fraudulent
risks.
3.)
Turnaround
@me
of
processing
claims
is
quick
but
very
costly.
4.)
The
allowable
expense
for
Administra@ve
work
is
not
financially
viable
(IC
only
allowed
25%).
5.)
More
of
a
service
than
a
business.
Microinsurance
is
not
something
that
we,
as
social
entrepreneurs,
can
consider
as
our
core
business.
However,
Ka'punan
Bank
acknowledges
its
importance.
Hence,
we
opted
to
pass
on
the
risks.

6. The
Strategy
Ini@ated
the
comple@on
of
all
Statutory
requirements
Determined
the
Implementa@on
right
Partner
Mapped
out
the
Transi@on
strategy
• TAT
to
process
• Compliance
• Stabiliza@on
• Financial
Status
• To
–
be
process
• Governance
• Industry
impression
• People
readiness
• Market
reach
• System
readiness
• Flexibility
• Risk
mi@ga@on

7. Our
Partners
Case
Study:
Case
Study:
The
Sendong
Experience
was
the
BOD’s
The
capacity
of
Globe
is
the
BOD’s
deciding
cri@cal
case
study
in
deciding
for
the
right
point.
Hence,
KB
chose
Globe
for
its
partner.
Ka@punero
card.
• Flexible
to
offer
some
health
benefits
• Flexible
to
our
terms
• Flexible
to
Profit
sharing
• Trained
our
people
• Quick
to
respond
to
our
needs
• Quick
to
train
our
people
• Helped
us
from
Day
1

8. Commercials
#
of
Clients
KBMBAI
PIONEER
30,000++
PhP
90,000++
Above
PhP
400,000
* KBMBAI amount was computed based on previous agreement
* Received by the bank for April 2012

9. Thank you!
I welcome your questions later!