1. Developing and Managing Microinsurance
Products and Partners
Dinah Verallo
FAIR Bank
2010 RBAP‐MABS Na.onal Roundtable Conference
Hya= Hotel and Casino, Manila
June 3, 2010

2. Developing and Managing
Microinsurance Products
and Partners
RBAP­MABS
Roundtable Discussion
03 June 2010

3. Brief Background
 Start of banking operations ­ 1999
 Micro Market
­ 2002
 Informal MI
­ 2002
 MI Regulation
­ 2009
 Transition Planning
­ 2010 Jan­Feb
 Implementation
­ 2010 Mar­Jun

4. Regulatory Framework for Microinsurance
National Strategy to
Microfinance
GOVERNMENT
BSP SEC FIN IC CDA Others
RURAL BANKS
INFORMAL
INSURANCE
MICROINSURANCE MARKET

5. Regulatory Framework for Microinsurance
GOVERNMENT
BSP SEC FIN IC CDA Others
• Minimization of
INSURANCE COMPANIES Risk
RURAL BANKS
• Shared
FORMAL INSURANCE responsibility
MICROINSURANCE MARKET
• Clients’ Benefits

6. Why Opt for Formal Microinsurance?
CLIENT’S SHARED RISK
BENEFITS RESPONSIBILITY MINIMIZATION
• RB and IC • Rural Bank and • Compliance
relationship the Insurance • Reputation
fosters improved Company (assurance of
services and • RB as the systematic
insurance institutional procedures on
product microinsurance claims)
• Lower premiums client • Financial
• Faster claim
procedure

7. Keys to Successful Transitioning
 Research Phase
 Fear of the unknown makes us resist for change
 Knowing Where to Go, What to Expect in the
Journey, and How to Enjoy the Ride

8. Keys to Successful Transitioning
 Research Phase
 MI Regulatory
 External Environment Framework
 BSP Circular No. 683
Series of 2010
 Market Information
 Parameters in
Choosing MI Partner

9. Keys to Successful Transitioning
 Research Phase
 MI Regulatory
 External Environment Framework
 BSP Circular No. 683
Series of 2010
 Market Information
Technical  Parameters in
Support Choosing MI Partner

10. Keys to Successful Transitioning
 Research Phase Market Information
 External Environment
Technical
Support
Market Needs/Preference

11. Keys to Successful Transitioning
 Research Phase Market Information
 External Environment
Technical
Support
Focus Group Discussion

12. Keys to Successful Transitioning
 Research Phase Choosing MI Partner
 External Environment
Technical
Support
Pioneer Life Inc.

13. Keys to Successful Transitioning
 Research Phase
 External Environment
 Strengths vs.
Weaknesses
 Internal Environment
 Gap Analysis
 Need vs. Existing
Capability

14. Keys to Successful Transitioning
 Implementation Phase
 Infrastructure Lay-out
 Capability-Building  roduct Development
P
Team
 Product Features
 Procedures
Technical  I Partnership
M
Support Negotiation

15. Keys to Successful Transitioning
 Infrastructure Lay-Out/ Transition Plan
 Product Development Plan  Eligibility
 Features
 Processes
 Guidelines
 Promotions
 Choosing
the right MI
Partner

16. Keys to Successful Transitioning
 Infrastructure Lay-Out/ Transition Plan
 Product Development Plan
Clients
 Communication Plan
Share-
Personnel
holders

17. Keys to Successful Transitioning
 Infrastructure Lay-Out/ Transition Plan
 Product Development Plan
 Communication Plan
 Rationale
 Product
 Training Plan
 Procedures

18. Keys to Successful Transitioning
 Infrastructure Lay-Out/ Transition Plan
 Product Development Plan
 Communication Plan  Reconciliation of
Balances
 Training Plan  Cut-Off of Informal
Insurance Database
 MIS Plan  Baseline Data

19. Keys to Successful Transitioning
 Implementation Phase
 Preparing the
 Training (Internal)
Employees for the
Change
 Understanding the
Regulatory
Technical
Framework
Support

20. Keys to Successful Transitioning
 Implementation Phase
 Training(Internal)
 nderstanding the
U
Basic Procedures on
Availment and Claims
Technical
Support

21. Keys to Successful Transitioning
 Finding the Right MI Partner
 The MI Partner must  Fast Processing of
support
claims
 Simplified Claims
Procedures
 Alternative/
Substitute
Documents

22. Keys to Successful Transitioning
 Finding the Right MI Partner
 Negotiation with the MI  hoose a MI Partner
C
that supports your
value proposition
 Duly authorized by
law and has complied
all requirements
 Willing to support all
the promotions
campaign of the bank

23. Thank You.