microinsurance building trust nigeria conf (jsa 09 10-13)

MICROINSURANCE: BUILDING TRUST, BUILDING BRIDGES

THE PHILIPPINES

INTERNATIONAL MICROINSURANCE CONFERENCELEARNING SESSION NIGERIAABUJA, NIGERIA SEPTEMBER 10-11, 2013

JOSELITO ALMARIODEPARTMENT OF FINANCE, PHILIPPINES

WHAT ARE WE FACED WITH

• INSURANCE IS SOLD, NOT BOUGHT

• INSURANCE IS A BUSINESS OF TRUST

WHAT WERE DONE

2010

2011

2012

• Microinsurance Defined• Microinsurance Providers

Identified• Branding and Slogan Conceived• Formalization Process Clarified• Microinsurance Agents/Brokers

Created (CBOs included)• Prototype Product Developed• Contracts Simplified• Performance Standards

Formulated• Reporting Standards Established• MBA Chart of Accounts Revised• Trainings on MI Advocacy and

Seminars • Alternative Dispute Resolution

Mechanism Established

July 2013

WHERE ARE WE NOWCOMMERCIAL PROVIDERS• 2008 - 2• 2012 – 35 (Life – 17, Non-life - 18)

MUTUAL BENEFIT ASSOCIATIONS• 2008 - 6• 2012 - 19

PRODUCTS APPROVED• 2008 – 7• 2012 – 89 (Life – 38, Non-life – 25, MBAs – 26)

INDIVIDUALS COVERED• 2008 – About 3 million (mostly credit life including

informal insurance)• 2012 – 12 million

WHAT ARE THE LESSONS LEARNED

Clear rules and regulations provide

better understanding and transparency

Consistency of implementation

results in predictability –

branding can help

Financial literacy is educating, not

marketingAdvocacy is

convincing, not selling

Localized and simple alternative

redress mechanisms

promote effective after-sales service

CLARITY, TRANSPARENCY, CONSISTENCY, LITERACY AND SIMPLICITY IN MICROINSURANCE–

BUILDS TRUST, BUILDS BRIDGES

www.microinsurancephil.blogspot.com