Uploaded byICMIF Microinsurance
Producing Actionable Information: The CARD MRI Experience
CARD MRI has developed several mutual reinforcing institutions to help its members, including basic life insurance, retirement savings, loan redemption funds, disaster housing insurance, and disaster relief assistance. In 2013, over 300,000 CARD families were affected by disasters. In response, CARD MRI immediately resumed operations and provided rehabilitation loans, loan moratoriums, livelihood training, disaster preparedness education, and health services to build community resilience. To handle risks and uncertainties, CARD MRI is pursuing reinsurance and increasing liquidity reserves and new product development. Information used includes client data, market characteristics, and operational data, while information needed includes more microinsurance industry data and access to macro-level third party data.
Producing Actionable Information: The CARD MRI Experience
- 1. Producing Actionable Information: TheCARD MRI Experience 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
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- 3. Typhoon Haiyan Wreckage Source:AFP Photo/Ted Aljibe
- 4. Basic LifeInsurance Program Retirement Savings Fund Loan Redemption Fund CaMIA PAID Plan (disaster housing insurance) CARD Disaster Relief Assistance Program (CDRAP)
- 5. 14,931 240 20,657 107,568 24,893 93,664 181,940 319,023 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2006 2007 20082009 2010 2011 2012 2013 No.ofAffectedFamilies Number of CARD Families Affected by Disasters (2006-2013)
- 6. AFFECTED MEMBERS IN 2013CALAMITIES
- 8. Building Community Resilience Implementationof 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
- 9. Handling Risks andUncertainties CARD MRI is addressing the need for -Reinsurance for basic life insurance of legal dependents -Reinsurance for credit life -Liquidity Reserves -New product development
- 10. Information Used •Information providedby clients, ie age, health status •Characteristic of the market •Operational data – ie number of members, claims experience
- 11. Information Needed •Microinsurance industryin 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 third-party
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Editor's Notes
- #3 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)
- #4 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.
- #5 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.
- #6 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).
- #7 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.
- #8 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 Medical Mission 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