Gearing Towards Sustainability and Inclusion through FinTech Ed Efforts. Changes in contemporary society continue to highlight the volatility of the microinsurance industry. For one, the call for digitization is as tantamount as ever with the need for microinsurers to adapt to modern tools and processes. Not to mention the risks faced by the members also evolve with global changes, such as the pandemic and climate change.
Stakeholders of microinsurance continue to face challenges such as high administrative and transaction costs, and the lack of information and prevailing attitudes about microinsurance. Overcoming these concerns requires a future-forward approach and fostering a sustainable ecosystem to build resilience.
To do this, Fintech Ed plays a significant role for both microinsurance providers and target beneficiaries to achieve sustainability and financial inclusion. When Mi-MBAs undergo Fintech training and workshops, they are better able to understand and adapt to the financial landscape as well as learn about the preferences and behaviors of their beneficiaries. Likewise, Fintech Ed empowers communities with financial and microinsurance literacy.
The recently concluded National Microinsurance Forum organized by the Microinsurance MBA Association of the Philippines Inc. (MiMAP) also known as RIMANSI, in partnership with the Insurance Commission, with the support of the Citi Foundation, ICMIF Foundation, CARD Mutually Reinforcing Institutions and CARD Pioneer Microinsurance Inc., discussed these challenges and workable solutions. This is an annual event organized every January in celebration of the National Microinsurance Month and provides a platform to discuss the challenges and opportunities facing the microinsurance industry. This year’s theme is “Sustainable and Inclusive Finance for Climate Resiliency.”
Forum topics included ways to foster a microinsurance ecosystem that not only advances financially sustainable microinsurance operations but more so enhances potential for delivering greater societal impact. Attendees listened to discussions on strategies and initiatives for dealing with climate challenges and disasters, using digital technologies, and improving customer experience to create a future where microinsurance not only adapts to changes but also helps build a resilient and sustainable world.
385 representatives of Microinsurance-Mutual Benefit Associations (Mi-MBAs), Microfinance Institutions (MFIs), Cooperatives (Coops), partner government and private sector institutions, and microinsurance providers and promoters in the country attended the forum.
Citi Philippines CEO Paul Favila opened the forum and shared the various financial inclusion programs supported by Citi Foundation and Citi initiatives to support climate action.
Citi is also committed to building a sustainable future. “We are working together to contribute to Citi’s commitment globally, as well as to the Environmental, Social and Governance (ESG) goals of the Philippines,” said Favila. “Our commitment to a more sustainable future cuts across our businesses, functions and teams. Citi pledged $1 Trn to sustainable finance by 2030, which aligns with the United Nations’ Sustainable Development Goals. Of this amount, $500 Bn is committed to environmental finance. Citi has committed to achieving net zero emissions associated with our financing activities by 2050, and net zero emissions for our operations by 2030,” he added.
Keynote speaker, Philippine Insurance Commissioner Atty. Reynaldo Regalado discussed the strategic directions for microinsurance in the country, focusing on the institutionalization of financial literacy, collaboration, growth, and digitalization. He also emphasized the role of the microinsurance sector in recovery and rebuilding efforts “It is important for us to have the mechanisms and services that will help secure the financial stability and resiliency of our people especially those who are in the marginalized sector of our society,” Atty. Regalado said.
(from left to right) Dr. Jaime Aristotle Alip, MiMAP Chairman Emeritus and CARD MRI Founder, Atty. Reynaldo Regalado, Insurance Commissioner of Insurance Commission and Mr. Paul Favila, Citi Philippines CEO attend the National Microinsurance Forum 2024 at The Manila Hotel, January 23.
At the event, discussions from experts of industry pointed out challenges being faced in the microinsurance sector, such as the instability of the economy, taxing concerns, and finding the right balance for pricing strategies, among others.
The forum also highlighted the vulnerability faced by the Philippine agricultural sector due to climate change and the gaps in agri-insurance. The importance of multi-sectoral partnerships in achieving climate-smart agriculture and building adaptive and sustainable communities were highlighted during the second panel discussion. Finally, the event explored best practices and key learnings in digitizing insurance processes. It stressed the need for continued development of new digital solutions, especially in the far-flung areas, to foster innovation and inclusivity in the society.
(from left to right) Mr. George Mina, General Manager of PLIA, Mr. Lorenzo Chan Jr., President & CEO of Pioneer Inc. and Board Member of CPMI, Mr. Jonathan Batangan, President of MIPAP and Executive Director of Cebuana Lhuillier Foundation Inc, Dr. Jaime Aristotle Alip, Chairman Emeritus of MiMAP and Founder of CARD MRI, Atty. Reynaldo Regalado, the Commissioner of the Insurance Commission, and Mr. Michael Rellosa, Trustee and Executive Director of PIRA in the panel discussion ““Microinsurance Policy Issues.
(from left to right) Mr. Lorenzo Chan Jr., President & CEO of Pioneer Inc. and Board Member of CPMI, Mr. Paul Xavier Espinosa, Operations Officer, IFC, Ms. Floradema Eleazar, Climate Action Programme Team Leader of UNDP, Ms. Vilma B. Cabrera CESO II, and Undersecretary for NHTS and 4Ps of DSWD, Mr. Michael Rellosa, Trustee and Executive Director of PIRA, Mr. Manuel Cortina, Business Development and Marketing Department Manager III of PCIC and Ms. Shayne Rose Bulos Climate Risk Insurance & Financial Inclusion Consultant of UN-WFP join the second panel discussion “Public-Private Partnerships for Climate Action Initiatives and Disaster Resiliency”
(from left to right) Mr. Marlon Soria, Head of Customer Experience of FWD Life Philippines, Ms. Jocelyn Dequito, Chief Executive Officer of CARD MBA, Mr. Paul Joseph Galacan, Chief Operating Officer of Kezar Philippines and Mr. Mike Singh Chief Commercial and Revenue Officer of UnionDigital Bank participate in the third panel session ““Digital Technology for Enhanced Customer Experience”
This year’s National Microinsurance Forum was also supported by BPI Wealth, CARD MRI Insurance Agency (CaMIA), FDS ASYA PHILIPPINES INC. (FDSAP), REDCAT, RIMANSI Mutual Solutions Insurance Agency, Inc. (RMSI), National Reinsurance Corporation of the Philippines and PhilCare.
Mitigating Risk and Improving Compliance and Performance: 2023 Management Forum
In the years prior, MiMAP had already been hosting similar events aside from the 2024 National Microinsurance Forum. For instance, they also organized the Management Forum last August 23-25, 2023, in Zamboanga City.
Anchored on the theme “Risk, Compliance, Performance,” the three-day forum generated hearty discussions by various experts in the field of microinsurance. The participants were introduced to a tool/framework that can help identify and manage business model risks. They also learned about measures to improve compliance with financial reporting, updating investment policies, making sense of key performance indicators, and improving member participation in governance.
Atty. Reynaldo Regalado, Commissioner of the Insurance Commission, delivered a keynote message, declaring IC’s support to the microinsurance sector by collating accurate data that can be used for microinsurance policymaking.
Ultimately, the participants witnessed a panel discussion “Mabilis, Madali at Maaasahan na Serbisyo Gamit ang Mi-MBA Mobile App” that highlighted the learning journey of pilot partner Mi-MBAs, MiMAP and Kezar (technology partner of MiMAP and the Mi-MBAs) as they navigated the development of a mobile application that will support the member growth of Mi-MBAs.
Training for Trainers: FinTech Ed Workshops
Building on the momentum of learning and growth, MiMAP organized a FinTech Ed Workshops last November 2023, at Kasagana Ka MBA Member Center Bldg, Diliman, Quezon City and at New Dawn Hotel Plus, Cagayan de Oro City respectively. The focus of these workshops was to teach MBA trainers how to use the mobile app, agent app, and microsite as part of the “FinTech for Greater Financial Inclusion Program” implemented by MiMAP with support from the Citi Foundation.
At the end of the workshops, over 40 FinTech ed trainers, comprised of 2 project partner Mi-MBAs in Luzon (Kasagana-Ka MBA and CARE MBA) and 3 project partner Mi-MBAs in Mindanao PBC MBA, KCCDFI MBA and 4K MBA, were capacitated in using the new version of the app and in mobilizing FinTech education aided by Adult Learning techniques and customized work plans and session plans.
“Masaya ako sa naging programa dahil natutunan ko gumamit ng mobile app at kung paano nito mapapabuti ang MBA,” said Ms. Mercy Jaime, Center Chief of the Women’s Group of Brgy. Dicklum, Manolo Fortrich. [“I am happy because through the program, I learned how to use the mobile app and how it helps the MBA.”]
Mylen Ibarolla, CARE MBA Project Staff, also pointed out how the mobile app makes microinsurance more transparent and accessible. “Magiging aware ‘yung mga members sa mga perang ibinibabayad nila dahil makikita na ito agad gamit ang mobile app.” [“Members are now aware where their money goes since, they can see it through the mobile app”]
“Maa-address agad ang concerns ng mga miyembro lalo na doon sa mga malalayo ang area,” she added. [“Members’ concerns can be addressed swiftly, especially for those located in far-flung areas.”]
In the future, MiMAP will continue to host similar events in the spirit of sustainability and growth for the microinsurance industry in the Philippines. The Management Forum will be held this August 2024 in Ilocos Sur, hosted by NSCC MBA.
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About MiMAP (RIMANSI):
The Microinsurance MBA Association of the Philippines Inc. (MiMAP) or RIMANSI helps professionalize the management of microinsurance mutual benefit associations (Mi-MBAs) and microinsurance programs to provide affordable, comprehensive, and quality risk protection to millions of poor people in Asia and the Pacific. Towards this purpose, MiMAP assists Mi-MBAs in developing risk management solutions, building capacities, advocating for appropriate policy environment, and pursuing research and development agenda.
About Citi Foundation:
The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. We invest in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant cities. The Citi Foundation’s “More than Philanthropy” approach leverages the enormous expertise of Citi and its people to fulfill our mission and drive thought leadership and innovation. For more information, visit www.citifoundation.com.