Mr. Ferdinand Sia illustrates the impact of microinsurance to a rural bank client during the 2012 RBAP-MABS National Roundtable Conference on June 8.

1. Session 7: Transforming MI from Service to Business
An Introduction
Ferdinand Sia
Chemonics International
2012 RBAP-MABS National Roundtable Conference
June 7-8, 2012
Hyatt Hotel & Manila

2. Microinsurance:
Guarding the poor from falling
2

3. Ermie peddles banana-que and bicho bicho
to raise her two small children
3

4. Life was better when her husband was helping the family
4

5. But the unexpected happened…
5

6. Without Microinsurance, Ermie would incur unmanageable
debt to pay for funeral and other emergency expenses
P20,000
P10,000 Death of
Spouse
P0
Childbirth
Treatment of
-P10,000
pneumonia
-P20,000
In debt for 3 years
Debt -P30,000
Risks of unmanageable debt:
1. Critical illness left untreated
2. Children’s schooling disrupted
Poverty cycle would likely continue 6

7. With Microinsurance, Ermie did not incur unmanageable
debt and continued to raise children without disruption
P20,000
P10,000 Death of
Spouse
P0
MICROINSURANCE
Childbirth
Treatment of
-P10,000
pneumonia
-P20,000
In debt for 3 years
Debt -P30,000
Freedom from unmanageable debt:
1. Illnesses treated properly
2. Children continue schooling
Higher chance of escaping poverty 7

8. The RBAP-MABS Microinsurance Initiative
Guarding the poor from falling
8