CARD MBA leads the microinsurance MBA sector

Of the total number of lives insured and premium produced by the MBA sector in the Philippines as of first quarter of 2017, CARD Mutual Benefit Association, Inc. (CARD MBA) dominated the industry by covering 75.46% and 77.01% of the total market share and premiums produced, respectively.

Data from the Insurance Commission revealed that there were 26.6 million Filipinos covered by microinsurance, wherein CARD MBA leads this sector.  “The mutual benefit associations registered the highest number of individuals covered by microinsurance,” said Insurance Commissioner Dennis Funa.

“This accomplishment means more of our Kababayans are already making their future secured especially during these extraordinary times of uncertainties, calamities, and disasters,” said CARD MBA General Manager May S. Dawat.

Moreover, CARD Pioneer Microinsurance, Inc. (CPMI), the sister company of CARD MBA, topped other non-life insurance companies in terms of premium production.

The CARD MBA way

In the Philippines, the Center for Agriculture and Rural Development (CARD) was among the first to provide microinsurance products and services to poor households since 1994 by introducing Members’ Mutual Fund (MMF), the precursor of the CARD Mutual Benefit Association (CARD MBA).

On September 9, 1999, the fund assumed a new name, the CARD Mutual Benefit Association, Inc. or CARD MBA, Inc., a separate legal entity, non-stock, non-profit, owned and managed by the members.

From the primary purpose of loan redemption, CARD MBA now gives Basic Life Insurance Program, Retirement Fund, Donated Benefits, Build-Operate-and-Transfer (BOAT) Program, Golden Life Insurance, mass wedding, and disaster relief assistance.

“In the past, only those who can afford insurance are assured, and those who don’t are left to chance,” GM Dawat said adding that the mismatch between high priced insurance and capacity of the poor to pay made them go beyond the mainstream insurance.

As of July 2017, CARD MBA already insured at least 13.8 million Filipinos and a total of Php575 million claims paid.

According to CARD MBA President Eulalia Villanueva, the strategic way of assisting and paying the claims of clients within 8-24 hours made the association register good reputation among the areas it serves nationwide.

“From 1-3-5 day target, CARD MBA is now on its 8-24 hour strategy to be more responsive to the needs of my co-members in the association,” President Villanueva added. To date, the claims settlement accomplishment for clients and dependents is 98.17% and 97.64%, respectively.

The CPMI way

Before the creation of CPMI, CARD was a client of Pioneer Life Inc.’s microinsurance line. In 2013, CARD and Pioneer made history when they paved the way for the establishment of the very first microinsurance company in the Philippines.

CPMI introduced the non-life aspect of microinsurance, making more products and services available to more Filipino families. Among the non-life insurance products it offers are Sagip Plan (family insurance package), CARD Care (daily hospitalization income benefits), Burial Assistance Program, and Kabuklod Plan (group insurance).

According to COO Roselito Magpantay, the company is still young but its way of doing things already exceeded the infancy stage. “Constant listening to our clients and the various innovative schemes we have implemented made us reach this milestone,” COO Magpantay added.

To date, the premium production of CPMI totaled to P361 million. Meanwhile, claims have already reached P36.4 million.

Microinsurance coordinators

To speed up the provision of microinsurance to more Filipinos, CARD MBA and CPMI have trained the coordinators who now serve as channels of the companies’ insurance products and services.

“Our microinsurance coordinators rose from those who have first-hand experience on the benefits of having microinsurance,” GM Dawat said.

“By filling in the gaps in the market through fearless and creative approaches in the distribution of microinsurance and retail products, we can get more Filipinos insured,” COO Magpantay added.

Microinsurance caravan

In 2016, three microinsurance subsidiaries of CARD Mutually Reinforcing Institutions (CARD MRI), namely CARD Mutual Benefit Association (CARD MBA), CARD MRI Insurance Agency (CaMIA), and CARD Pioneer Microinsurance Inc. (CPMI), launched a Microinsurance Caravan that served as an awareness campaign on the importance of microinsurance.

“We hope that through this campaign, we would be able to reach more especially those hardcore poor in the country,” GM Dawat said.

The clients of CARD, Inc. and the member-savers of the three banking institutions of CARD Mutually Reinforcing Institutions (CARD MRI), the CARD Bank, Inc., CARD SME Bank, Inc., and Rizal Bank, Inc., as well as their beneficiaries benefitted from the said campaign.

5-8-40 strategy

To further strengthen and support the goal of having a financially inclusive country, CARD MRI launched in 2015 its 5-8-40 strategy that aims to reach eight million Filipinos nationwide and insure at least 40 million individuals in five years.

“All our efforts are anchored on the 5-8-40 strategy of CARD MRI. It is our dream to achieve zero poverty in our country and through microinsurance, every Filipino will have a more secured and brighter future,” GM Dawat concluded.

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