Microinsurance MBAs Mutual Security Fund Batch 1 secured the initial contribution amounting to one million for the Mutual Security Fund (MSF) in its first year. The fund targets to accumulate a total of five million in the span of five years, through adding one million fund contribution per yeat. ASKI MBA, CARD MBA, CARE MBA, KGI MBA, K-MBA, SEDP MBA, and PBC MBA composed the first batch of MSF participants who made the initial contribution and were qualified to form part of the MSF..
With its goal of strengthening the mutual protection scheme, the Microinsurance MBA Association of the Philippines, Inc (MiMAP) established the MSF to satisfy claims of members in case of insolvency of participant MBAs. The Fund operates behind the principles of positive peer pressure exhibiting co-responsibility, accountability and support to leave no Mi-MBAs behind.
The Solvency and Risk Protection Committee (SRPC) and the Financial and Risk Review Committee (FRRC) are formed to lessen the insolvency of participant Mi-MBAs and claims to the Fund. The SRPC is mandated to oversee the fund investment and Solvency Risk Protection Process. This process is formulated to monitor the stability of the Mi-MBAs through a Performance Measurement System.
The FRRC, on the other hand, plays a role in regularly reviewing the performance of the qualified MSF participants, as well as the other member MBAs who may be able to qualify in joining the existing participants. The FRRC members are composed of experts in insurance regulations, audit, investment management and business development, qualified to conduct assessment and review processes to ensure Mi-MBAs meet international standards. The goal is to keep the good performing MBAs in its fitting status and to devise recommendations and assistance for the betterment of other MBAs’ operations to be qualified to participate in MSF.
With the goal of building a healthy and strong microinsurance industry in the country, the operation of the MSF and the utilization of the Solvency Risk Protection Process are eyed to be the formal mechanism of Mi-MBAs’ Self-Regulatory Organization.