1. 2010 RBAP-MABS NATIONAL
ROUNDTABLE CONFERENCE
“Microfinance: From Best Practice to Next Practice”
June 2-3, 2010
Hyatt Hotel and Casino, Manila
HELPING RURAL BANKS COMPLY WITH
MICROINSURANCE REGULATIONS
By:
VIDA T. CHIONG
Deputy Insurance Commissioner

2. Microfinance and Microinsurance :
Complementary Partners in Poverty Alleviation
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3. Intro…..
BSP Circular No. 683 Series of 2010
….” allowing rural, cooperative and thrift
banks to present, market and sell
microinsurance products.”
A major breakthrough for the Microinsurance Program
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4. MICROINSURANCE PRODUCTS AND
CONTRACTS
WELCOME TO MICROINSURANCE
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5. MICROINSURANCE PRODUCT
Daily Premiums/Contributions
 not more than 5% of the current daily minimum
wage rate (P19.00)
Guaranteed Benefits
 not more than 500 times the current daily
minimum wage rate (P190,000.00)
The maximum amount of premium and guaranteed
benefits applies on a per product or per policy basis.
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6. Microinsurance Contract
 Coverage
 Period of Cover
 Risk & Contingent Events Covered
 Terms & Conditions
 Effectivity
 Claims Settlement
 Dispute Resolution
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7. For Life Microinsurance Contracts:
 Grace Period - maximum of 45
calendar days from due date of
premium
 Contestability - 1 year from effective
date or date of last reinstatement of
the contract
 Suicide Provision - 1 year from the
effective date or date of last
reinstatement of the contract
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8. A microinsurance contract should bear
a microinsurance logo to distinguish it from
other insurance products.
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9. LICENSING REQUIREMENTS AND
PROCEDURES (PROPOSED)
 Microinsurance agents/brokers shall not
required to take the regular licensure
examination, but:
• shall have to undergo an approved
Microinsurance Training Program; and
• pass a qualifying examination at the
end of the Program.
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10. Licensing…..
 Licensed regular agents/brokers shall
be allowed to sell microinsurance
products
 Microinsurance agents/brokers are
being considered to sell only
microinsurance products
 Minimum Paid-Up Capital Requirement
• Microinsurance general agent – P125,000.00
• Microinsurance broker – P10 M
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11. Licensing…..
 Microfinance institutions (e.g. rural banks)
may be licensed provided that:
 the institution is empowered under its
articles of incorporation to transact
microinsurance business
 the application shall be accompanied by:
• a copy of general agency agreement between
the institution and the insurance company;
• a copy of the power of attorney executed by
the insurance company empowering it to
receive notices, summons and legal processes
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12. Licensing…..
 Cannot be licensed as a Microinsuranc
broker and Microinsurance agent at the
same time.
 The license expires June 30 of each year
and may be renewed if in compliance with
rules and regulations.
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13. CONCLUSION
Twin Pillars for the Development
of Microinsurance
 National Strategy
 Regulatory Framework
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14. Ongoing Thrusts
 Formulation of Performance Standards
 Microinsurance Products Development
 Financial Literacy
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15. 3rd International Conference
on Microinsurance
Manila, Philippines
8-11 Nov. 2010
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16. INSURE TO BE SURE
THANK YOU
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