CARD MRI

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CARD MRI MICROINSURANCE PROGRAM
Jaime Aristotle B. Alip, Ph.D. Founder and
Managing Director, CARD MRI May 7-8,
2007 Sheraton Rio Hotel, Rio de Janeiro, Brazil
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CARD MRI Vision
CARD MRI is the global leader in the microfinance
industry owned and led by members upholding the
core values of excellence, competence, integrity,
family spirit, humility, and simplicity.
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CARD MRI Mission

• CARD MRI is committed to
• Build sustainable financial and capacity building
  institutions owned and led by socially and
  economically challenged families
• Provide continued access to integrated
  microfinance and social development (credit with
  education,leadership with a heart, innovative
  community programs) services to an expanding
  membership base by organizing and empowering
  women and their families and
• Continue upholding the highest standards of
  stewardship of financial, human and institutional
  resources.

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Geared Toward Raching A Total Of One Million
Members By 2009
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The Business Model
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• CARD NGO Branches are the marines of the CARD
  MRI and when it matures, they are transferred to
  the bank as part of the structure of the bank.
• All members of the CARD NGO and CARD Bank
  branches are insured under the CARD MBA.
• CMDI is the capacity building arm and supplies
  staff for all the CARD MRI the CARD NGO, CARD
  Bank, and the CARD MBA.

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CARD MRI SUPPORT UNITS
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CARD MRI Performance as of December 2006

• Operations Update
• Total No. of Clients Served for the Year
  300,487
• No. of Active Members including Savers
  263,873
• No. of Active Clients with Loans
  247,782
• No. of Insured Persons
  1,486,692
• Amount of Loans Disbursed P
  2,989,188,200.00 59.80M
• Amount of Loans Outstanding P 1,124,603,838.00
  22.49M
• Amount of Savings P 600,406,552.00
  12.00M
• Repayment Rate 98.51
• No. of Staff 1,709
• Employees 1,539
• MBA Coordinators 170
• No. of Offices 296
• Branches 232 Partners 2
• Office Units 50 Provincial Offices 5
• Head Offices 4 MRI Office
  1

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CARD MRI Performance as of December 2006

• Financial Update
• Total Asset P 1,777,946,051.00 35.56M
• Total Liabilities P 1,245,816,192.00
  24.92M
• Total Equity P 532,129,858.00
  10.64M
• Operational Self-Sufficiency 116.53
• Financial Self-Sufficiency 108.13
• Return on Assets 5.29
• Return on Equity 11.03

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Origins of the CARD MBA

• Early 1990s a survey was conducted by CARD
  Inc. to assess the potential new services that
  members wanted which resulted as the access to
  life insurance as the most favored.
• April 1994 - Members Mutual Fund (MMF) to
  provide loan balance coverage plus burial
  assistance in the case of death of the borrower
  amounting to US55-91 based on the weekly premium
  of US 0.04

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Origins of the CARD MBA

• 1998 CARDs External Auditors advised the
  management that the pension situation was
  financially unsustainable.
• September 1999 CARD MBA was registered with the
  SEC
• May 22, 2001 CARD MBA was officially licensed
  by the Insurance Commission

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WHY MICROINSURANCE ?
is another weapon for poverty alleviation.

• MICROINSURANCE

for micro-entrepreneurs.
SAFETY NET
2. MICROINSURANCE is a

• In most cases, some commercial insurance
  companies dare not
• to touch the micro-entrepreneurs
  because of the size of

THEIR BUSINESS.
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Without Microinsurance
DEATH
RESOURCES
()
0
TIME
(-)
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With Microinsurance as SAFETY NET .
DEATH
RESOURCES
100 K
THIS PORTION WILL BE LEFT FOR THE BENEFICIARY
()
0
TIME
(-)
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ALTERNATIVE MICROINSURANCE STRUCTURES
Cooperative Microinsurance
In-house Microinsurance
The CARD MBA Model
Commercial Microinsurance
Commercial Insurance Agent Model
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BOARD OF TRUSTEES COMPOSED OF MEMBERS WHO KNOW
THE NEEDS OF THEIR CO-MEMBERS
BOARD OF DIRECTORS COMPOSED OF PRIVATE
INDIVIDUALS (MOSTLY THE RICH)
POLICY MAKING BODY
ORIENTATION
SERVICE TO THE MEMBERS
PROFIT

• PAID CONTRIBUTIONS STAYED
• WITH THE ASSOCIATION
• LEVEL CONTRIBUTIONS,
• LEVEL BENEFITS

• PAID PREMIUM IS GONE FOREVER
• THE HIGHER PREMIUM YOU PAY,
• THE HIGHER BENEFIT
• YOU CAN GET

CONTRIBUTIONS / PREMIUMS

• FUNDS WILL GROW
• FUNDS OF THE ASSOCIATION
• CAN BE A SOURCE OF FUND
• FOR LENDING ACTIVITIES

• WILL BE RICHER AT THE EXPENSE
• OF THE HARD EARNED MONEY OF
• THE CLIENTS

NO CLAIM
HAS TO SHELL OUT LOT OF FUNDS BUT BANKRUPTCY
CAN BE AVOIDED THRU REINSURANCE FACILITIES
CATASTROPHIC LOSS
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COMMERCIAL INSURANCE COMPANY
MUTUAL BENEFIT ASSN (MBA)
PARTICULARS

• CAN BE DONE AS EARLY AS 1 TO 3 DAYS FROM THE
  TIME OF NOTIFICATION BUT NO LONGER THAN ONE
  WEEK IF CLAIMS DOCUMENTS ARE COMPLETE.

• MOST INSURANCE COMPANIES CAN
• SETTLE CLAIMS AS EARLY AS ONE
• MONTH

PAYMENT OF CLAIMS

• SEVERAL DOCUMENTS ARE REQUIRED AND VARY FROM ONE
  INSURANCE COMPANY TO ANOTHER

• SIMPLIFIED DOCUMENTATION

ONLY THE POLICY HOLDER WITH OPTION TO COVER
FAMILY MEMBERS BUT WITH ADDITIONAL PREMIUM
ALL LEGAL DEPENDENTS OF THE MEMBERS ARE
COVERED
COVERAGE
MBAs CAN WORK WELL WITH THE COMMERCIAL INSURANCE
COMPANIES THROUGH REINSURANCE TREATIES
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Thank you!
CARD MRI
CONTINUOUSLY PUSHING FRONTIERS _at_ 20