MR Microinsurance_2012_03_29.indd - International Labour ...

326 Insurance and the low-income market
Table 15.4 Products included in the PACE analysis, Philippines
FICCO, MBA CARD, MBA CLIMBS, Micro-biz
family protector
Start date 2007 1994 2004 2007
Product Term life, AD&D Term life, AD&D Term life, AD&D,
funeral, fi re
Cover PHP 40 000 (natural
death, principal), PHP
10 000 for others, same
AD&D
Monthly
premium
per family1 Monthly
premium
per family family1 PHP 50 000 (natural
death, principal), PHP
10 000 for others, same
AD, disability up to
PHP 100 000, PHP
10 000 hospital cash
due to motor vehicle
accident
PHP 30 000 (natural
death, principal), 10-
PHP 15 000 for others,
same AD&D, burial
benefi t PHP 2 500 to
PHP 10 000, PHP
40 000 for fi re
MicroEnsure,
Family Life with
TSKI
PHP 90 PHP 60 PHP 87 PHP 78
Term life, AD&D,
funeral
PHP 90 000 (natural
death, principal),
PHP15 to 30 000 for
others, PHP 70 000
(AD&D, principal),
PHP 10 to 20 000 for
others, benefi t PHP
5 000 to PHP 20 000
Distribution FICCO MFI CARD MFI MFIs and cooperatives TSKI MFI
Targeted
segment2 Targeted
segment segment2 Microentrepreneurs,
fi shermen, farmers
and formal sector
workers loans from
PHP 13 000 to PHP PHP
2M
PHP 5 to 20 000
monthly monthly average
family income
Performance3 Performance 85 000 members
(330 000 lives insured)
30 per cent claims ratio
Retention rate > 80 per
cent
3 85 000 members
(330 000 lives insured)
30 per cent claims ratio
Retention rate > 80 per
cent
Women microentrepre-
microentrepre-
neurs, trade, services,
agriculture
PHP 5 to 20 000
1 million members
(4 million lives insured)
15 to 25 per cent claims
ratio
Retention rate > 80 per
cent
Members of credit and
savings cooperatives
PHP 5 to 20 000
Women micro- micro- micro-
entrepreneurs,
working poor,
mostly in rural areas
PHP 5 to 20 000
135 000 lives 1 million lives
45 per cent claims
ratio
1 Half of the premium for MBAs goes to a guarantee fund and is reimbursed to members when they
decide to leave the scheme.
2 As all schemes target a population that is just below or just above the poverty line, the estimated
income range for all schemes is PHP 5 000 to PHP 20 000, with average monthly household
income at PHP 11 000. Th ese calculations are based on the following sources: 1) PhilHealth (2010):
low income threshold at PHP 246 109 annually, approximately PHP 20 000 monthly; average
income in low-income group PHP 7 500; 2) National Statistical Coordination Board (2011) offi cial
poverty statistic: monthly poverty threshold for a family of fi ve at PHP 7 017.
3 Claims ratio for MBAs is calculated on premiums collected. In reality, the ratio doubles as it should
be based on the non-refundable portion only.
Note: US$1 = PHP 45.
All the schemes in the Philippines provide better value to low-income
households than similar informal risk mechanisms (Figure 15.6), despite the fact
that in the Filipino culture community support to help bereaved families is well
established. Th e main limitation of informal mechanisms is that they only
cover funeral costs, which still leaves families vulnerable when a breadwinner
dies. Otherwise, informal mechanisms to deal with life risks are accessible, not