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Microinsurance Mutual Benefit Associations band together to push financial inclusion agenda

Posted at April 10, 2018 | By : | Categories : Newsletter | 0 Comment

Microinsurance is a mechanism to protect the health and livelihoods of low-income households against risks such as accident, illness and property loss. Insurance Premiums are tailored to their needs, income and level of risk. But the penetration level for microinsurance among the poor remains low. With the primary goal to make microinsurance more accessible to all, a Management Forum was held in Butuan City, Agusan del Norte in November 22 to 23, bringing together 16 Microinsurance Mutual Benefit Associations (Mi-MBAs) all over the country to discuss strategic and organizational planning tools and frameworks.

This forum is just one of the training components of a capacity building program funded by Citi Foundation through RIMANSI. RIMANSI, a microinsurance resource center, is an association of 19 Mi-MBAs regulated by the Insurance Commission of the Philippines. Members have a combined coverage of 5.34 million households nationwide, insuring 17.92 million lives through its basic family life insurance program that covers at least four members of each family, which pays only a single premium.

The program Building Microinsurers’ Capacities for Greater Financial Inclusion aims to provide the management and staff of Mi-MBAs across the Philippines with training, customized technical assistance services and member-level education. The end goal is that with enough training, the staff of these Mi-MBAs will be able to educate their own members. The expected outcome of the program is an increase in new membership by one million in five years and sustained outreach with at least 95% member retention

Almost 60 participants from member Mi-MBAs attended the two-day forum, with discussions ranging from stakeholder analysis and environment scanning to claims policy and management.

RIMANSI Executive Director Jun Jay Perez talked about translating strategic plans to action plans and regulatory framework for product bundling while planning sessions on business continuity, disaster recovery, and financials were conducted by finance and investment experts.

It was a perfect opportunity for the various associations to share best practices with their peers. Mi-MBAs like 4K, QPI and CARE, who have started pilot programs in expanding its membership outside of their mother organization to further reach uninsured households, shared their activities and partnership strategies on market penetration planning. CARE MBA in particular, emphasized the importance of cooperation and good communication among its partners.

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Mi-MBAs from across the country gather to participate at the 2017 Management Forum.

Kazama Grameen Inc. Mutual Benefit Association (KGI-MBA) General Manager Jane Concepcion shared, “I learned that for MBAs to gain additional partners or distribution channels, we need to handle it with care, just like courtship and marriage – from the intensive engagements in presenting or discussing the MBA products and services to the commitment through MOA signing, if they agree to the conditions and operations of the MBA.”
This year’s management forum was co-hosted by Peoples Bank of Caraga Mutual Benefit Association (PBC-MBA).