1. MICRO-INSURANCE
INITIATIVE
BY:
DR. PRAXEDES A. IGNACIO
President and Chief Executive Officer
Mallig Plains Rural Bank (Isabela), Inc.

2. PROCEDURES:
 January 27-28, 2011
*Two (2) bank representatives attended the
prescribed Basic Micro-insurance Training
conducted by MABS
 March 09-11, 2011
*Officers of the bank attended the Micro-
insurance Training conducted by our insurance
provider.

3.  April 29, 2011
*The Bangko Sentral ng Pilipinas approved our
request for a “No Objection Notice”.
 September 2, 2011
*Insurance Commission issued our License as
Micro-insurance Agent.
 October 24, 2011
*Insurance Commission endorsed to the
Securities and Exchange Commission for the
registration of the amended Articles of Incorporation
on the secondary purpose “to sell, solicit, or market
insurance products and services as an insurance
agent, especially for micro-insurance products issued
by life and non-life insurance companies, authorized
by the Insurance Commission

4.  December 28, 2011
*Letter of BSP informing us that the Monetary
Board in its Resolution No. 1759 dated November
24, 2011 approved our request for authority to act
as Micro-insurance Agent.
 February 09, 2012
*Approval by the Securities and Exchange
Commission (SEC) of the certificate of filing of
amended Articles of Incorporation.

5. BENEFITS DERIVED BY THE BANK:
1. Our bank has a significant influence on micro-
insurance towards our microfinance clients and
micro-depositors and the offshoot of the general
openness of micro-insurance motivated us to
offer and provide better and expanded services to
members;
2. Increase in outreach (micro-borrowers and
micro-depositors);
3. Increase in loan portfolio and deposits; and
4. Reduce our credit risk

6. BENEFITS OF CLIENTS:
1. Risk Protection
In times of hardships, for example: when a
member of a family dies, hospitalized or met an
accident, they are not forced to take out another
loan with high interest rate because of the
following benefits:
a. Death benefit
b. Accidental death and Permanent disability
c. Accidental medical reimbursement
d. Daily confinement benefit
e. Instant Abuloy
f. Financial assistance due to fire or natural
calamities

7. 2. Growth of livelihood projects; and
2. Savings are not depleted in time of
emergencies or crises

8. CHALLENGES:
1. Policy changes and revision of existing rules
and regulations by our regulators;
2. High costs of continuous training of staff to
handle micro-insurance, trainings of clients and
marketing;
3. Changes in the level of benefits, frequency and
affordability of level of premium payments;

9. 4. Adverse selection problem on high-risk persons,
i.e: persons over 65 years old, persons with pre-
existing health problems and high risk
occupations; and
5. Efficient and effective delivery of micro-insurance
products and the viability, growth and
development of micro-insurance industry.