MEFIN Public-Private Dialogue Theme: Proportionality in Regulations and Microinsurance Business Model Development DISTRIBUTION

Transcription

1 MEFIN Public-Private Dialogue Theme: Proportionality in Regulations and Microinsurance Business Model Development DISTRIBUTION 12 July 2016 / New World Hotel Manila, Philippines ब म स ममत Beema Samiti Indonesia Mongolia Nepal Pakistan Philippines Vietnam

2 Section 1.17, Application Paper on Regulation and Supervision supporting Inclusive Insurance Markets, IAIS, Oct 2012 Generally, consumer protection needs are higher when access to insurance markets is first extended. Protection mechanisms need to be tailored to a customer segment with low financial literacy, and little or no experience with insurance. While keeping transactions costs low, it is important to address effective disclosure, simplicity of products, fair and accessible resolution of disputes and recourse options and efficient claims mechanisms.

3 Relevant IAIS Insurance Core Principles (ICPs), Issues, Applications Relevant ICPs ICP#18 Intermediaries requirements for the conduct of insurance intermediaries, to ensure that they conduct business in a professional and transparent manner. Issues and Applications of Proportionality Regulations Philippines: IMC Regulations for the Provision of Microinsurance Products and Services. Section 6 provides the proportionate requirements for licensing of microinsurance agents and brokers. Training not required to take the examination Capital half of regular agent/broker License can be issued to both individuals and institutions such as NGOs, coops and rural banks.

4 Relevant IAIS Insurance Core Principles (ICPs), Issues, Applications Relevant ICPs ICP#18 Intermediaries requirements for the conduct of insurance intermediaries, to ensure that they conduct business in a professional and transparent manner. Issues and Applications of Proportionality Regulations Philippines: CL Adoption and Implementation of Enhanced Microinsurance Regulatory Framework clarify and delineate the roles and functions of microinsurance regular agents, general agents, brokers, and distribution channels, outline their respective duties and responsibilities, their role in delivery mechanisms, and their responsibility in cases of claims disputes

5 Relevant IAIS Insurance Core Principles (ICPs), Issues, Applications Relevant ICPs ICP#19 Conduct of Business Sets requirements for business conduct to ensure customers are treated fairly Issues and Applications of Proportionality Regulations Philippines: Joint IC-CDA-SEC Memo Circular Defining Government s Policy on Informal Insurance Activities. It provided 3 options in formalizing unauthorized insurance activities. Philippines: CLs 16 to 13, 2013 provides the Guidelines for the Implementation of Alternative Dispute Resolution for Microinsurance. The ADReM system enjoins MI intermediaries to manage claims disputes. The convention insurance uses the traditional ombudsman system of the regulator.

6 Relevant IAIS Insurance Core Principles (ICPs), Issues, Applications Relevant ICPs ICP#20 Public Disclosure Insurers to disclose relevant, comprehensive and adequate information on a timely basis Issues and Applications of Proportionality Regulations Philippines: IMC requires that all MI contracts shall: Shall clearly state the benefits and terms of coverage. Bear the MI logo Can be easily understood by the insured and printed in English and/or Pilipino Documentation requirements are simple

7 1930 s Henry Lhuillier, 1968 French Consul His General son, Philippe to 1987 the Philippines, J. Lhuillier, The expanded established company in his adopted Manila first agencia under the name the in Cebu name Cebuana and Agencia started Lhuillier. Cebuana. providing pawning services. Over 1,800 branches nationwide GUINNESS WORLD RECORDS Largest Chain of Pawnshops in the World Year 2000

8 Services Pawning Remittance Insurance E-Load / Top-up Bills Payment Vision To be the best and preferred micro-financial and businessto business solutions partner with a heart. Mission To enable more Filipinos to have access to financial solutions.

9 Cebuana Lhuillier Insurance Solutions Vision To be the number 1 insurance distribution and claims channel in the Philippines. Mr. Jean Henri Lhuillier President & CEO

10 CLIS is the first and only ISO-certified Insurance Agency in the Philippines

11 In 2004, then PLIA launched the first sachet insurance available in pawnshops for only P20 with Accidental Death Dismemberment and Disability Coverage Established in 1999 as the insurance arm of PJ Lhuillier Group of Companies

12 Became CLIS in 2011 In 2009, Fire Cash Assistance benefit was added and the product was renamed as Alagang Cebuana Plus.

13 Single Insurance Certificate (COC) $488 $122 $122 $.61 Maximum Limit: Five(5) COC s per insured

14 Microinsurance product designed for anyone between 7 to 70 years old. With coverage of Accidental Death, Dismemberment, Disability, Fire Cash Assistance and a rider benefit for Murder and Unprovoked Assault. Valid for four (4) months, ACP is a 24/7 Personal Accident Insurance, anywhere in the world coverage. ACP is insured by Pioneer Insurance Company, one of the top non-life insurance companies in the Philippines.

15 Sample Confirmation of Cover (COC)

16 $.88 premium $111 Microlife insurance coverage for four months

17 Certificate Sold (in Millions) year-on-year Intensive sales within and outside the branch network 1.31 M M M M M M M M M M M 2015

18 Success Factors: Simple Affordable Accessible Speedy claims processing Intensive Branch Training ICT Infrastructure Creative internal/external marketing campaigns

19 More than 150 Million Claims Settled to date Over 6,000 claimants

20 Over-the-counter selling ACP is available in more than 1,800 Cebuana Lhuillier Pawnshop and Pera Padala branches nationwide All branch personnel are knowledgeable in microinsurance and applicable sales techniques

21 Microinsurance-on-Wheels mobile hubs roaming in rural areas nationwide

22 Barangay Cebuana with GIZ Held 681 LGU meetings and sold a total of 300k insureds

23 MSMEs & Organizations Taps different organizations, groups and businesses to promote microinsurance and ACP.

24 Claims Events and Activities Kumustahan, Baliktanaw and Ex-Gratia (Cash Aid) pay-out activities with ACP claimants as an avenue for highlighting the benefits of microinsurance. Said events encourage on-the-spot selling activities and engage claimants to become microinsurance sub-agents CLAIMS BALIKTANAW 2013 EX-GRATIA CLAIMS KUMUSTAHAN SETTLEMENT 2015 (Sold more than 100pcs ACP COCs) JP Rizal, Makati Compostela City Valley, Iligan, Cagayan DSWD Beneficiaries de Oro, etc. in Pasay City

25 On offering to consumers Imposition of sanctions on forcedselling. In addition, posters were displayed to remind clients that purchasing microinsurance products is voluntary.

26 Consumer Hotlines Clients may get in touch with Cebuana through its dedicated customer care unit Cebuana Cares using various means of communication: 1. Online Facebook, 2. Call / Text for Globe and SMART subscribers

27 Surveys ACTUAL FORM ACP claimants are requested to accomplish a Survey Forms to rate the company s efficiency in terms of claims servicing and processing.

28 Latest Survey Ratings

29 Consolidated Feedback

30

31 Tri-Media Campaigns

32 Awarded various international local marketing and PR awards Promoting Filipinos positivity and resilience

33 CLIS in APEC Summit CLIS attended APEC Summits in Iloi-ilo and Bacolod Disaster Risk Finance, APEC Roadmap for Resilient Economies April 2015

34 MANDALUYONG FIRE November 26, 2015

35 The New Normal is in. Microinsurance helps. Multistakeholder collaboration is key. Attended by various representatives from Local Government Unit, Academe, Socio-Civic Organization, etc.

36 FREE Microinsurance coverage to 1 Million Filipinos

37 Challenges on Proportionality and Distribution 1. Flexibility of the current insurance law to create proportionate regulations such as on capital adequacy, intermediation, and imposition of restriction / limitations on activities for MI providers 2. Extent of independence of power of regulator to issue proportionate prudential regulations 3. Supervisory oversight and coordination among regulators

38 Thank you for your attention.