microinsurance; the current and challenges. a card mba experience on its microinsurance program

All rights reserved CARD MBA 2012

TOPICS TO BE DISCUSSED

I. Brief Description of CARD MBA

II. Contributions of CARD MBA to Microinsurance Industry in the Philippines

Claims Settlement Model Product Development Model Contribution to Insured Filipinos BOAT Program Microinsurance Model Community Development Service thru CDRAP

III. Strengths of CARD MBA CARD MRI Networks MBA Coordinators General Membership

IV. Current Challenges

CARD MBA as Microinsurance Arm of CARD Mutually Reinforcing Institutions

(CARD MRI)


CARD Mutually

Reinforcing Institutions

“Mga Institusyon sa iisang Misyon”


CARD Mutually Reinforcing Institutions (CARD MRI)

NAME OF INSTITUTIONYEAR

ESTABLISHEDNATURE OF BUSINESS

CARD, Inc. or CARD NGO 1986 Microfinance

CARD Rural Bank 1997Microfinance- oriented rural

bank

CARD Mutual Benefit Ass’n Inc. (CARD MBA) 1999 Microinsurance

CARD-MRI Dev’t Institute, Inc. (CMDI) 2005Training Institute for staff,

members & public

CARD Business Dev’t Service Fdn. (BDSF) 2006 Business development

CARD MRI Insurance Agency (CaMIA) 2007 Insurance Agency

CARD MRI Information Technology

(CMIT)2010 Information Technology

CARD SME Bank 2010Microfinance-oriented thrift

bank

BotiCARD 2011 Pharmacy


Automatic Membership to CARD MBA


BOAT PARTNERS

BOAT PARTNERS

Major contributions of CARD MBA to the Microinsurance Industry

in the Philippines


FUNERALHOSPITAL MEDICALEXPENSES

DEATHSICKNESS

DISABILITY

INCOME FROM

MICROCREDIT

CYCLE OF POVERTY CAUSED BY MISFORTUNEINCOME FROM MICROCREDIT REMAINS !!!

MICROINSURANCE CAN BREAK THE CYCLE OF

POVERTY

Functions of Microinsurance


Claims Settlement …

3

If the dead body is already buried at the time

of validation and with complete documents, the

claim must be settled within three days upon

notification.

5[

On the 5th day upon notification, all claims must be given action with finality.

Claims with incomplete documents will be given

denial letter but still can be settled upon completion of required documents thru

the letter of reconsideration.

1-3-5-day Target in Claim’s Settlement

This Claim Settlement Model is replicated by at least ten (10) organized groups providing formal or informal microinsurance program to their member-clients

1If the dead body is not

yet buried at the time of validation, the claim must

be settled within 24 hours upon notification.


1-3-5 DAY TARGET PERFORMANCE


PER TYPE OF BENEFIT 1 DAY 2 DAYS 3 DAYS 4 DAYS 5 DAYSRECONSIDE

RED CLAIMS

TOTAL

DEATH

MEMBER 3,912 36 24 13 23 17 4,025

% 97.2% 0.9% 0.6% 0.3% 0.6% 0.4% 100.0%

LEGAL DEPENDENT 7,608 1282 980 602 754 831 12,057

% 63.1% 10.6% 8.1% 5.0% 6.3% 6.9% 100.0%

MVAH

MEMBER 1,543 181 101 40 104 158 2,127

% 72.5% 8.5% 4.7% 1.9% 4.9% 7.4% 100.0%

SPOUSE 1,653 165 117 64 130 183 2,312

% 71.5% 7.1% 5.1% 2.8% 5.6% 7.9% 100.0%

OVERALL RATING

14,716 1,664 1,222 719 1,011 1189 20,521

64.5% 10.1% 7.6% 4.6% 6.2% 7.1% 100%

92.9%

Members97% Paid within

1-3-5-day Target

Legal Dependents

93% Paid within 1-3-5-day

Target

Pilot Test

CARD MBA Product Development Model

Feedback

Roll Out

Monitoring

Adjustment (if any)

Risk Profiling

Adjustment (if any)

Engagement of

Stakeholders

Adjustment (if any)

Proto-typing

EVALUATION


Products Developed

1. Life Insurance Program Accidental Death Total & Permanent Disability Motor Vehicular Accident Hospitalization Benefit Refund of Contributions

2. Retirement Savings Fund Mandatory Exit Age at 70 Optional Retirement at ages 65, 66, 67, 68 & 69

3. Loan Redemption Fund Amount of benefit = Principal amount of loan Automatic Loan Offsetting upon Total & Permanent Disability

4. Package Assistance in Case of Disaster (PAID) Plan Personal Accident Funeral Benefit Re-house (Residential Insurance) All rights reserved CARD MBA

2012

Contributions to Number of Insured Filipinos

7.5 Million insured individual contributes 19% to total insured Filipinos


Build Operate And Transfer Program

C

AR

D M

utua

l Ben

efit

Ass

ocia

tion,

Inc

.

1. Are you willing to provide microinsurance products to

your members ?

2. Do you have Php 5 million for guarantee fund?

3. Do you have the capacity to run your own micro-

insurance program?

Get into the BOAT of CARD MBA…

YES

NONE

NONE


VALUE PROPOSITIONS of the VALUE PROPOSITIONS of the BOATBOAT PROGRAM PROGRAM

1. MEMBERSHIPThe members of BOAT Partner will be members of CARD

MBA enjoying the same benefits as CARD members.

Build Operate And Transfer Program

3. DISENGAGEMENTAfter three (3) years, all those entitled for the refund of

contribution will be turned over to the BOAT partner’s own MBA together with their refund of contribution to become their seed capital.

2. PERIOD OF ENGAGEMENT: THREE YEARS

During the 3-year period, there will be technical assistance and transfer of technology in the management of a mutual benefit association.


PARTNERSHIP

CARD MBA PRESENTATION

WORK PLAN and PRO-FORMA MOA

REVIEW

ASSESSMENT OF BRANCH & CENTER

ACTIVITIES

ASSESSMENT OF BRANCH & CENTER

ACTIVITIES

DEVELOPMENT ofIMPLEMENTING RULES

and FINALIZATION of MOA

MOA SIGNING and TRAINING of the

MANAGEMENT TEAM of BOAT PROGRAM

MOA SIGNING and TRAINING of the

MANAGEMENT TEAM of BOAT PROGRAM

The BOAT Framework The BOAT Framework

ASSESSMENT & MONITORING

ASSESSMENT & MONITORING

FINALIZATION ofIMPLEMENTING

RULES

FINALIZATION ofIMPLEMENTING

RULES

“Get into the BOAT of CARD MBA” “Get into the BOAT of CARD MBA”


CARD MBA is the Microinsurance Model of 12 Partners of Rimansi


•CARD MRI DISASTER RELIEF ASSISTANCE PROGRAM

•MASS WEDDING

•SCHOLARSHIP PROGRAM


None financi

al Servic

es

CARD MRI Disaster Relief Assistance Program

Without additional member’s contribution, relief goods

are given to all member-victims of natural disasters like:

a. Earthquakes;

b. Floods;

c. Landslide;

d. Volcanic eruption;

e. Fire

f. Typhoon


Types of Perils No. AmountThyphoon 43,302 11,766,365.07Flood 120,123 38,985,762.95Fire and Lightning 755 465,460.47Tidal Wave 3 1,275.65Twister 8 1,819.60Earthquake 1,103 299,599.50Landslide 1 300.00

Total 165,295 51,520,583.24

CDRAP for 2012

CARD MBA’s STRENGHTS

1. CARD MRI Networks Assist in the collection of contribution

thru the weekly Center Meeting

Assist in the Information Education Campaign

2. MBA Coordinators Assist in the claims settlement

3. General Membership CARD MBA is 100% owned by the

Members


CURRENT CHALLENGES AND OPPORTUNITIES

Strengthening staff capacity building program to respond to expanding membership.

To develop Crop Insurance products for the members.


microinsurance; the current and challenges. a card mba experience on its microinsurance program

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