Providing a “Warm Embrace” in a Time of Need for Women

Providing a “Warm Embrace”
in a Time of Need for Women
Microentrepreneurs
KASAGANA-KA Mutual Benefit Association
Quezon City, Philippines
KMBA
• A non-stock, not-for-profit
organization owned and managed by
its members
• Provides affordable
insurance
products to poor microentrepreneurwomen and their families
• Serves Metro Manila and neighboring
areas and the island Province of Cebu
KMBA
• Sister organization of KASAGANA-KA
Development Center, Inc. (KDCI) whose
client-beneficiaries and staff members
constitute KMBA’s primary members
• Also offers associate membership to clients
of other microfinance organizations and
other organized sectors
Phases of KMBA Development
Study and
Set up
Learning
Phase
2005
Market
Study
2006
Actuarial
Study, SEC
Registration
2007
Lobbied and
Received IC
License
2008
Increased in MFI CBs due to
insurance program, Lakbay Aral
2009
Cleaned database of
inactive members
Partnering
Phase
2010
Development of
Consortium Strategy
New Products
Phase
2012
CLIP Implementation and Tie-up
with Private Insurer
Consolidation
Phase
2014
Reinsurance
2011
New Management Leaders; Full
implementation of consortium
2013
Product
enhancements
Operation Highlights (2007-2014)
TOTAL MEMBERS
37,552 or 150,000 lives covered
Assets
$ 2.4M
Member’s Contribution (LIFE)
$ 2.5 M
Premium Contribution (CLIP)
$ .176 M
Retirement Savings Fund
$ .522 M
Claims Paid
$ .238 M
Number of Claims
1,439 (552 members, 887 dependents)
Fund Balance (Surplus)
$ .744 M
Products and Services
Basic Life Insurance Plan
Credit Life Insurance Plan
K-Kalinga
SICAT
KJSP
Accidental Life Insurance with Fire Assistant
(underwritten by Bankers Assurance-Malayan Group)
(Social Initiative Against Catastrophe)
(Kuya Jun Scholarship Program)
PRODUCTS/SERVICES
Basic Life Insurance Plan
PAYMENT
• $ 43 cents per week
 $ 32 cents - premium
 $ 11 cents - RSF
• $ 2 one time membership fee
Frequency of payment
• $ 11 for 6 months or $ 22 for 1
year
BENEFITS
• Maximum death claim of $ 1,064 to $
2,127.6 for natural and accidental death,
respectively.
• $ 106 to $ 213 for legal dependents
• $ 213 hospital reimbursement due to
vehicular accident for married couples
• 50% refund on premium and 100%
retirement savings fund upon resignation
Credit Life Insurance
Plan
• $ 30 cents per $ 21 loan per
year
• Payment of loan balance to issuing
institution upon death of the debtor
• Return of loan payments to the debtor’s
beneficiary
K-Kalinga
• $ 1 per policy per year
• Maximum of 5 policies per
person
• $ 426 accidental death benefit
• $ 106 burial assistance
• $ 106 fire assistance
(underwritten by Bankers
Assurance-Malayan Group)
SICAT
• $ 43 housing assistance for flood or fire
KJSP
• $ 66 per year educational assistance for
High School
• $ 106 twice a year educational assistance
for College
(Kuya Jun Scholarship
Program)
Growth in Membership
30,000
25,000
20,000
15,000
10,000
5,000
0
2007
2008
2009
KDCI
2010
2011
2012
Consortium/Associate
2013
2014
Partner Agents
Roles
KDCI
• Enrollment
CAPS-R
(Cebu)
Core Members
• Collection
• Record keeping
• Helps in product
orientation
• Recommend
claims payment
Kasagana-ka
Provident Fund
Other
organized
groups
Commission fee is 2% - 5% of the total premium collection
Growth in Premiums
600,000.00
500,000.00
400,000.00
300,000.00
200,000.00
100,000.00
2007
2008
2009
2010
2011
2012
Premium in Dollars
2013
2014
Number of Claims
400
350
300
250
200
150
100
50
0
2007
2008
2009
2010
2011
2012
2013
2014
Number of Claims
300
YEAR
Member
Dependent
Total
250
2007
12
7
19
200
2008
27
51
78
150
2009
46
79
125
2010
64
99
163
2011
73
119
192
2012
90
116
206
2013
116
174
290
2014
124
242
366
TOTAL
552
887
1,439
100
50
0
Member
Dependent
Average number of
claims
1/day
Claims Paid
120,000
110,913
100,000
88,426
80,000
62,472
60,000
48,139
34,738
40,000
20,000
0
1,665
21,388
10,060
2007 2008 2009 2010 2011 2012 2013 2014
Claims Amount in Thousand Dollars
Claims Settlement
Submit claims
documents to
KDCI Field Office
Field offices
informs KMBA
KMBA informs
the assigned
Area
Coordinator
CLAIMANT
Area Coordinator
validates the death
Process claims
Account Officer
recommends
payment of
claims
Account Officers
facilitates the release of
claims
Claims Settlement
1 day
Death benefit of
member shall be paid
within 24 hours from
the time the notice
was received
3 days
5 days
Death benefit of
legitimate
dependent/s shall be
paid within 3 days
from the time the
notice was received
Those with complicated
documents that are
difficult to produce
must be cleared for
appropriate action
within 5 days
We consistently manage to achieve our 1-3-5 day target.
Success Factors
1. Strong partnership with core partner (KDCI)
2. We attend to our members’ needs the quickest and most
personalized means possible.
3. We consistently manage to achieve our 1-3-5 day target.
4. Our Area Coordinators cover manageable geographic
areas and are in constant touch with our Account Officers
and office-based staff.
5. Regular product orientation, financial literacy education,
and governance participation of members, board
members, area coordinators, and management staff
6. Periodic consultations and roadshow
Hindrances to Growth
1. Lack of an effective management information
system
2. Lack of sufficient skills in marketing for expansion
3. Constant changing needs of clients resulting in high
dropouts
Challenges and Requisites
• We will continue to keep in step with
developments in the operations of KDCI and
those of our partner MFIs.
• We will listen to the safety net needs of our
members as they navigate through the
country’s inclusive growth goal
Challenges and Requisites
• We will remain anchored on our vision of “a
self-reliant and self-sustaining mutual benefit
association that actively and appropriately
responds to financial risk management needs
of poor Filipino families.”
KMBA Board of Trustees, Area
Coordinators, and Management Staff
www.kmba.org.ph
Maraming Salamat!
Thank you!
[email protected]