CARD Pioneer framework used as global benchmark for financial inclusion

The country’s first microinsurance company, CARD Pioneer Microinsurance Inc. (CPMI), has partnered with global accelerator Microinsurance Master to share best practices in protecting low-income households through simple, affordable and accessible insurance solutions.

This is the Pioneer group’s third time to host the Microinsurance Master in the Philippines. Twenty microinsurance practitioners from 14 different countries are attending the program to learn from Pioneer’s experience in growing its market from 270,000 to over 18 million enrolments in less than a decade.

CPMI is a joint venture between the Pioneer group and CARD MRI, the country’s largest microfinance institution, to principally address the range of protection needs of the low-income population, including but not limited to coverage for calamity, agriculture, business interruption, health, accident and loss of life.

“The fulfillment of our shared vision to eradicate poverty starts from providing Filipinos in the low-income bracket affordable and accessible insurance. By understanding their needs and filling the gaps, we were able to not only grow our market but also to protect more Filipinos from unforeseen and unavoidable risks,” said CARD MRI founder Dr. Aris Alip in a session also attended by Pioneer Group Head Lorenzo Chan Jr.

“Microinsurance is such an important tool for low-income families in emerging markets and developing countries like the Philippines, where almost 24% of the population are engaged in agriculture,” said Mr. Chan. From 2010 to 2019, agricultural damage amounted to P290 billion. Typhoons in 2020 alone have wiped out P14.25 billion worth of agricultural goods. “By making insurance products more affordable and accessible, you bring value to your customers by offering a solution to those who need it most.”

Mr. Chan also stressed the role of public-private partnerships in making social development more inclusive through microinsurance. Early this year, state-run Philippine Crop Insurance Corp. and CPMI entered a risk-sharing program that would benefit the agriculture sector by protecting them from risks such as flood, typhoon, drought, plant diseases, and pest infestation, among others.  This will cover crops ranging from rice and corn to coffee, banana, sugar etc.

“This public and private partnership in agri-insurance is the first in the Philippine market. An effective collaboration between the two sectors is vital to provide sustainable and effective insurance products to farmers and ultimately help those who provide food for our tables manage the risks they face,” Mr. Chan stressed in another recent global forum. Microinsurance Master is a unique leadership programme intended to inspire, equip and strengthen those who are involved with or wish to embark on microinsurance with transformative insights, frameworks, and tools. The program is initiated by Bert Opdebeeck, a believer in inclusivity who works closely with various microinsurance champions.