An Introduction

Ferdinand SiaChemonics International

2012 RBAP-MABS National Roundtable ConferenceJune 7-8, 2012

Hyatt Hotel & Manila

Session 7: Transforming MI from Service to Business

Microinsurance:Guarding the poor from falling

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Ermie peddles banana-que and bicho bichoto raise her two small children

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Life was better when her husband was helping the family

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But the unexpected happened…

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Without Microinsurance, Ermie would incur unmanageable debt to pay for funeral and other emergency expenses

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-P30,000

-P20,000

-P10,000

P0

P10,000

P20,000

Debt

Death of Spouse

ChildbirthTreatment of pneumonia

In debt for 3 yearsRisks of unmanageable debt:1. Critical illness left untreated2. Children’s schooling disrupted

Poverty cycle would likely continue

With Microinsurance, Ermie did not incur unmanageable debt and continued to raise children without disruption

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-P30,000

-P20,000

-P10,000

P0

P10,000

P20,000

Debt

Death of Spouse

ChildbirthTreatment of pneumonia

In debt for 3 yearsFreedom from unmanageable debt:1. Illnesses treated properly2. Children continue schooling

Higher chance of escaping poverty

MICROINSURANCE

The RBAP-MABS Microinsurance InitiativeGuarding the poor from falling

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