This presentation was delivered by Ms May Dawat (General Manager at CARD MBA, The Philippines) at the ICMIF-AOA Development Network Seminar (18-20 September 2013; Manila, The Philippines)

5. In December 1996, the Pension Plan was implemented to provide retirement, medical and disability benefits to members. This product became popular its member-
clients. Unfortunately, CARD had not adequately assessed the impact of this product to the institution
In April 1994, established the Member’s Mutual Fund (MMF), an informal insurance-like activity, created for the
primary purpose of loan redemption in case of death of member-borrowers.

6. The Management also realized that the whole institution
was at risk and fulfilling its obligation to members would
DECAPITALIZE CARD leading to potential bankruptcy.
The Pension Plan was stopped after a couple of years of
its implementation.
In 1998, an assessment was done, CARD realized that a
member would contribute for two years just to cover one
month of pension benefit.

7. To Avoid Co-Variant Risks
The Need for Business Focus
The Need for Proper Product Costing
The Need for Separate Management
Information System [MIS]
The Need to Develop Insurance Culture
The Management concluded that an insurance business
should not be tied to the capital of a microfinance
institution (MFI).

8.  On October 29, 1999, it was registered with Securities and
Exchange Commission (SEC).
An Actuary assessed the risks and helped re-price the
products.
On September 9, 1999, the management of MMF was
officially turned over to the members and assumed a
new name, CARD Mutual Benefit Association, Inc. or
CARD MBA, a separate legal entity, non-stock, non-
profit, owned and managed by the members.
 On May 22, 2001, obtained license from the Insurance
Commission to operate as mutual benefit association.

10. Registration and licensing entails different sets of
documentary requirements of SEC and IC. And, recurring
review of IRR and related documents.
High capitalization requirement for licensing new MBAs, the Php
10,000 capitalization initially prescribed by the Insurance Code
was raised by IC in IMC No. 2-2006 to Php 12.5 million. This was
lowered to Php 5 million thru the issuance of IMC No. 9-2006.
Capacity-building interventions are needed to further improve
the governance, management and operations of MBAs.
Need to strengthen the MBAs in planning and marketing,
developing MIS, improving products and enhancing operating
manuals.

11. Monitoring the development and sustainability of institutions
offering microinsurance products and services.
Review and development of performance standards and
indicators applicable to all providers of microinsurance.
Strengthening of regulations to support microinsurance and
safeguard the interest of microinsurance clients and the
general public.

13. 1. Innovates product and services based on actuarially sound
computations and pricing.
2. Establishes Provincial Offices nationwide to reach the remote and
hard-to-reach areas of affiliated MFIs.
3. Involves the members in the direct implementation of microinsurance
program by creating MBA Coordinators who assist the management in
claim validation and in promoting products and services.
4. Enhances capacity of the board of trustees to ensure excellent
leadership and empowerment of members.
5. Improves financial stability, compliance and governance.
6. Strengthen claims settlement process.
7. Increases trust on microinsurance as manifested in the growth of
outreach.
Formalization enables CARD MBA explore
various innovations to expand the reach of
its microinsurance program:
…these are the reasons why formalization is encouraged.

14. Role of CARD MBA before more
microinsurance regulations were introduced

16. Major Milestone of Microinsurance Regulation
“Microinsurance Regulation and Declaration of Policy Objectives,’
“National Microinsurance Month”

17. Major Milestone of Microinsurance Regulation
“National Strategy for Microinsurance,”
“Regulatory Framework for Microinsurance,”

18. Major Milestone of Microinsurance Regulation
“Regulations for the Provision of Microinsurance Products and Services”
“Defining Government’s Policy on Informal Insurance Activities,”
“Guidelines on the Treatment of Funds Collected from Informal
Insurance Activities.”

20. 1.1.Raising Public AwarenessRaising Public Awareness::
CARD MBA increased awareness and helped improve
understanding of microinsurance, especially among stakeholders.
This resulted to increased in membership from 28,531 to 2.1 million.
2. Influencing Policy2. Influencing Policy::
CARD MBA being a member of Rimansi carved out a niche for
microinsurance in the government’s policy alleviation program
and the regulatory framework for the insurance industry.
Results of formalization of Microinsurance MBAs and
developments of microinsurance regulations:

21. 4.4. Paving the Way for a Regional Microinsurance NetworkPaving the Way for a Regional Microinsurance Network ::
CARD MBA and Rimansi has established its leadership position in
the field of microinsurance in the country and in other parts of Asia
particularly in Cambodia, Vietnam, Indonesia and Laos.
3. Extending Risk Protection Services to the Poor and the3. Extending Risk Protection Services to the Poor and the
DisadvantagedDisadvantaged
CARD MBA and Rimansi was able to prove the merit of
microinsurance delivered thru MFI-affiliated MBAs, convincing an
increasing number of organizations to venture into microinsurance,
formalize their operations and protect more economically challenged
families. As of August 2013, CARD MBA has 13 BOAT Partners and
Rimansi has 15 MI-MBA Partners.

23. 20 M. L. Quezon St., City Subdivision, San Pablo City, Laguna
TEL: (+6349) 562 4309
FAX: (+6349) 562 0009
EMAIL: info@cardbankph.com