Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia Phase II
Microinsurance Development through Online Communities (MicroComm) Project
Pagpakilala/Pagpailaila sa “Online Communities”
(Introduction of Online Communities)
Tacloban and Butuan Cities
27-28 April 2017
4-5 May 2017
Terms of Reference for the MicroComm Introductions
The German Development Cooperation (GIZ) Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia Phase 2 (RFPI Asia II) has signed a Cooperation Agreement for a Developing Public-Private Partnership (DeveloPPP) with Pru Life U.K. on the implementation of the “Microinsurance Development through Online Communities (MicroComm) Project”. MicroComm seeks to organize Retirees, MFI/Coops, Women teachers and MSMEs into online communities to learn financial literacy and gain access to life and non-life microinsurance products via an internet platform. A Market and Product Development Study has been undertaken in Tacloban and Butuan cities to identify the background of the target sector including access to internet-based services and financial services.
Tacloban and Butuan have been recipients of the Training on Microinsurance Advocacy (TOMA) in 2014. As a continuing activity, and now focused on specific sectors, a round of Introductions linked to access to online communities shall be implemented in the two areas.
GIZ commissioned a Market and Product Development Survey for the MicroComm. Briefly, the field surveys indicated that a sample of the interviewees had accessed loans, particularly after Typhoon Haiyan/Yolanda. Micro loans of up to P10,000 per group with daily amortization was common for informal workers. Those with monthly and higher salaries such as teachers could get loans of up to P.5 million payable in 5 years via salary deduction (Ex.: City Savings Bank). All participants were not aware whether their loans were linked to a term life insurance. The interviewed teachers had accessed a burial package from St. Peter’s Plan. Use of internet was common among teachers, less with informal workers. Facebook, Google and Lazada had been used by the respondents. An online purchase had been done by another younger member of the family. All interviewees were interested to avail of insurance products on health, education and term life with a money back policy; in order of importance. Suggested premium range is between Php250 – Php2,000 per month --- “affordable”. All interviewed wanted to learn financial budgeting, and are open for additional incomes/sidelines.
A Market Assessment and Product Development Study has been conducted in Tacloban and Butuan Cities on 2-16 April 2017. Following the study, the project aims to engage with the communities to present the concept of online communities, to ensure acceptability and user-friendliness. Once enrolment to the Empowering Filipinos Online Community has been established, community interests shall be reinforced with Financial Literacy Training. For example, the module entitled “Magpaseguro para Protektado” (Get Insured to be Protected) which has been produced for the general public in 2014 among GIZ, ADB Japan Fund for Poverty Reduction, and the Department of Finance National Credit Council can be linked to online communities, and later, access to microinsurance products via an online platform.
For the meantime, the FinLit Training will be done in Tacloban and Butuan for the following purposes:
- To present and discuss the culture of Leyte-Samar and Tacloban City; and CARAGA and Butuan city, as an input to the creation of online communities.
- To present the needs of communities following Natural Catastrophes.
- To present the ideal good life and its contributing factors
- To introduce “Empowering Filipinos” as an online community platform, and seek initial reactions from target sectors on their needs, and use of such as platform.
The discussions will be linked with the Market Study Results, focusing on the use of technology, introducing the MicroComm online platform, and the benefits of members. The introduction will be followed by FGDs with pre-identified community leaders on the next day, 28 April, to document the views of identified sectors on the concept of online communities, the website design and functionality, etc.
The Introductions will be undertaken in partnership with the City Governments of Tacloban and Butuan Cities. This introduction shall be done on “developing phases” approach, to catch the attention of sectors first, and once membership is established, followed through with the FinLit training, and product selling, later.