process and success factors of developing private partnerships … · 2012-11-22 · process and...
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Process and Success Factors of Developing PublicPrivate Partnerships for Microinsurance in the Philippines
7th International Microinsurance Conference,
Dr. Antonis Malagardis, Program Manager GIZ-MIPSS
8-10 November 2011
Ri B ilRio, Brazil
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Overview
Quick Statistics of the PhilippinesMicroinsurance Cooperation Landscape Framework and innovative MI products 4 Examples of existing MI Public-Private Partnerships Do PPPs cover the low-income market? Is a stand-alone or add-on the promising approach? Key messages re PPPs development Key messages re PPPs development
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94 Million pop. 24.9 Million are poor (26.5%).
Quick stats of Philippines
p p p ( ) Insurance providers 87 non-life companies 35 life companies35 life companies 4 composite, 1 reinsurer 27 MBAs (mutuals) $ 13 3 Billion in assets (81 7% Life and 18 3% $ 13.3 Billion in assets (81.7% Life and 18.3%
Non-Life) Insurance outreach & market response 13 92% of population has life insurance 13.92% of population has life insurance 1.04% insurance penetration Approx. 2.9 Million poor have some kind of
financial risk protectionfinancial risk protection 50 MI products approved (33 life and 17 non-life) 19 insurers and 17 MBAs offer MI products
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14 MBAs wholly engaged in MI products About 2 Million insured with MI-MBAs
Philippines Microinsurance Cooperation Landscape
Government Entities:Regulators:Department of Finance-NCCInsurance CommissionB k S t l Pili i
Government Entities:Philippine Information Agency
Department of EducationDepartment of Health
Bangko Sentral ng PilipinasSecurities of Exchange CommissionCooperative Development Authority
pPhilHealth
Philippine Crop Insurance CorpLocal Government UnitsFinancial
inclusion (risk
Technical Assistance:
Private Sector:PIRA , association of non-life companies
PLIA, association of life companies
inclusion (risk protection for
the low income sector)
GIZ Microinsurance Innovations ProgramADB Developing Microinsurance Project
CHAMBAI, association of MBAsAHMOPI, association of HMOs
Coop Insurance SocietiesMCPI, association of MFIs
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ASP, association of actuariesAIAP, association of insurance accountants
Learning Centres/Training Institutions
F k d i i MI d i PH
• Non-• Life
Framework and innovative MI products in PH
NonLife
• Life
Regulation Strategy
Performance St d d
Financial Lit
• NatCat• Agro
StandardsLiteracy
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GIZ MIPSS : A champion in PPPs for MI 4 examplesGIZ-MIPSS : A champion in PPPs for MI - 4 examples
Munich Re developed together with GIZMunich Re developed together with GIZ NatCat Insurance product against loan default of around 1800 coops under CLIMBS - a composite insurer - in case of excess of rain or wind - Triggers for 1700 ggmunicipalities available
GIZ-MIPSS provides Cebuana Lhuillier Insurance Solution (CLIS)
with 1,400 Pawnshops as MI distribution channels
pnationwide MI
Advocacy & Capacity building
BAC (Malayan Group) to underwrite and distribute MI through drugstores
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BPI Globe BanKO to distribute MI through a mobile cellular platform
PPPs cover the low-income market
Members of Cooperatives are in the great majority low-income people (‘grassroots insurance’)
P h ff it i i d t th Pawnshops offer community-conscious services geared to the low-income sector
BPI Globe BanKO adopted a BBK (home-life-livelihood) ‘prototype’ insurance product developed with GIZ-MIPSS with the aim to serve the Filipino poor
BAC (Malayan Insurance Group) offers home-life-livelihood BAC (Malayan Insurance Group) offers home life livelihood insurance (similar to BBK) exclusively to the low-income people
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Stand-alone and add-on PPPs equally apply
Partnership with Munich Re for the NatCat insurance is stand-alone.
Insurance products developed and marketed through the Partnerships with Pawnshops, BPI Globe BanKO and BAC (Malayan Insurance Group) are bundled (add-on) including accidental death and fire insurance with indemnity based property insurance (e.g. in case of typhoons) p p y ( g yp )
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Key Messages – PPPs related (1)
It needs efforts of several public and private actors to make microinsurance a success storymicroinsurance a success storyNeed to clarify at an early stage the roles and
responsibilities of private and public partnerPrivate sector covers the product development and
distribution while financial education and awareness in addition to capacity building is the task of the public partneraddition to capacity building is the task of the public partnerPrivate entity is responsible for the marketing but
sometimes it may need support from the public partner
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Stakeholder‘s involved Business
interest, protection for member coops
(CLIMBS)
Business interest(Munich Re)
Development goals (GIZ)
(CLIMBS)
PPPPPP (Munich Re)goals (GIZ) PPPPPP
Overlapping development objectives and business opportunities Pooling of different expertise and know how inPooling of different expertise and know-how in
development cooperation, re/insurance, and cooperative sector
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Key messages - Product related (2)
Do not underestimate the complexity of a new product and the need to be understood by all parties involved
C li i i MI h ‘N t f t l d’ Create realistic targets in MI outreach – ‘Not so fast as planned’ Easy access to the product can be facilitated through technology
and the use of internet-based or mobile cellular platformsp Bundling of ‘easy’ products with ‘complex’ ones (e.g. NatCat)
can bring advantages Integrate a new product carefully in order to avoid crowding out Integrate a new product carefully in order to avoid crowding out
the established mechanisms by a ‘professional’ product FinLit is educating, not marketing and advocacy is convincing, not
lli
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selling
