The Rural Bankers Research and Development Foundation Incorporated (RBRDFI), the research and development arm of the nonprofit Rural Bankers Association of the Philippines (RBAP), has been offering training on microinsurance to local rural banks, of which seven have so far been licensed to offer microinsurance services by the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, and the Insurance Commission (IC), which regulates the country’s insurance industry. Another 40 rural banks reportedly have applications pending. RBRDFI has trained 270 bank staff from 130 rural banks under its “Basic Microinsurance” course since the start of 2011 [1]. The course covers the fundamentals of microinsurance selling, marketing and servicing.
The Philippine government, through a tie-up between two agencies, the Department of Finance (DOF) and the Department of Social Welfare and Development (DSWD), is also working to expand microinsurance coverage by targeting beneficiaries of the cash transfer program “Pantawid Pamilyang Pilipino,” which reached 2.3 million households this year and is forecast to reach a total of 3 million beneficiaries by 2012 [2]. Beneficiaries will be linked with microinsurance mutual benefit associations, which provide life, credit life and health insurance coverage [3].
By Kristha Abores, Research Associate
About Bangko Sentral ng Pilipinas:
Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. Established under the provisions of the New Central Bank Act of 1993, BSP is headquartered in Manila and has three regional offices performing cash operations and eighteen branch offices. BSP participates in various advocacy programs concerning microfinance, financial education and consumer protection.
About Insurance Commission (IC) of the Philippines:
The Insurance Commission (IC) of the Philippines was created in 1949 and mandated by law to regulate and supervise the country’s insurance industry. According to the organization’s website, its mission is to “protect the interest and welfare of the insuring public and to develop and strengthen the insurance industry.” Specifically, its objectives are to promote the growth and financial stability of insurance companies; to maintain a minimum standard of performance for insurance companies; to educate the public about insurance; to establish a sound insurance market; and to safeguard the rights and interests of the insured. IC’s vision is that by 2020, every Filipino will have the opportunity to be covered by insurance.
About Rural Bankers Research and Development Foundation Inc. (RBRDFI):
The mission of the Rural Bankers Research and Development Foundation Incorporated (RBRDFI) of the Philippines, the research and development arm of the nonprofit Rural Bankers Association of the Philippines (RBAP), is to engage rural customers in the economic system through a strong and responsive rural banking system. Its main objectives are setting standards for innovation and excellence in rural banking and partnering with government in the development and implementation of policies and legislation that support rural economic development.
About Rural Bankers Association of the Philippines (RBAP):
Established in 1955, RBAP is a non-profit, incorporated association of rural banks operating under the guidance of 15 directors whose goal is to promote rural development in the Philippines. RBAP’s mission is to support the ability of its members to offer quality banking services to all their constituencies, to comply with regulatory requirements and to promote the welfare of the communities in which they operate. RBAP has approximately 700 member banks.
Sources and Additional Resources:
[1] The Philippine Star: “Rural banks get microinsurance licenses”, http://www.philstar.com/Article.aspx?articleId=736005&publicationSubCategoryId=74
[2] Business World: “Cash transfer beneficiaries targeted for microinsurance”, http://www.bworld.com.ph/content.php?section=Economy&title=Cash-transfer-beneficiaries-targeted-for-microinsurance&id=39335
[3] SunStar: “Deal for 4Ps micro-insurance inked”, http://www.sunstar.com.ph/davao/local-news/deal-4ps-micro-insurance-inked
“Microinsurance Basic Training Batch 7 conducted by RBAP with the Metro Manila Federation”, http://microinsurance.rbap.org/microinsurance-basic-training-batch-7-conducted-by-rbap-with-the-metro-manila-federation-2/
MicroCapital.org article, May 27, 2011, “MICROCAPITAL BRIEF: Manulife Financial Introduces Life Microinsurance Product for Philippines, Plans to Expand Sales in Vietnam”, https://www.microcapital.org/microcapital-brief-manulife-financial-introduces-life-microinsurance-product-for-philippines-plans-to-expand-sales-in-vietnam/
MicroCapital.org article, May 24, 2011, “MICROCAPITAL BRIEF: Microinsurance Companies in the Philippines Request Tax Exemption”, https://www.microcapital.org/microcapital-brief-microinsurance-companies-in-the-philippines-request-tax-exemption/
MicroCapital.org article, April 28, 2011, “MICROCAPITAL BRIEF: Insurance Commission of the Philippines Expects 20% of Population to be Insured by End of 2011”, https://www.microcapital.org/microcapital-brief-insurance-commission-of-the-philippines-expects-20-of-population-to-be-insured-by-end-of-2011/
MicroCapital.org article, March 8, 2011, “MICROCAPITAL BRIEF: Eighty Cooperatives in the Philippines Express Interest in Purchasing Weather-Index Microinsurance Offered by Coop Life Insurance & Mutual Benefit Services (CLIMBS), Munich Re, GTZ Venture”, https://www.microcapital.org/microcapital-brief-eighty-cooperatives-in-the-philippines-express-interest-in-purchasing-weather-index-microinsurance-offered-by-coop-life-insurance-mutual-benefit-services-climbs-munich-re/
MicroCapital.org article, March 1, 2011, “MICROCAPITAL BRIEF: Manulife Philippines to Offer Microinsurance Products to Low-Income Filipino Households”, https://www.microcapital.org/microcapital-brief-manulife-philippines-to-offer-microinsurance-products-to-low-income-filipino-households
MicroCapital Universe Profile: Bangko Sentral ng Pilipinas (BSP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangko+Sentral+ng+Pilipinas+%28BSP%29
MicroCapital Universe Profile: Insurance Commission (IC) of the Philippines, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Insurance+Commission+%28IC%29+of+the+Philippines
MicroCapital Universe Profile: Rural Bankers Association of the Philippines (RBAP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Rural+Bankers+Association+of+the+Philippines+%28RBAP%29
MicroCapital Universe Profile: Rural Bankers Research and Development Foundation Inc. (RBRDFI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Rural+Bankers+Research+and+Development+Foundation+Inc.+%28RBRDFI
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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