Rural Banks, offering a competitive advantage for Microinsurance services

Rural banks, in partnership with commercial insurance companies, have one of the best opportunities to reach the greatest number of low income households and facilitate formal microinsurance services across the countryside using a  partnership model.  In this model, commercial insurers carry the risk and the rural banks can disseminate information and help facilitate collections and disbursements to clients in the countryside.
A series of two articles written by sub-editor Judy T. Gulane was published in Business World presenting an extensive view of the prospects for facilitating greater access to microinsurance services through Philippine rural banks. According to the article, the Bangko Sentral ng Pilipinas (BSP) is open to the proposal of the Rural Bankers Association of the Philippines (RBAP) to allow a partnership model. The articles also stated that the BSP is expected to release a circular soon, setting forth the conditions for allowing rural banks to distribute microinsurance services, thereby greatly expanding access for millions of Filipinos.

Rural banks, in partnership with commercial insurance companies, have one of the best opportunities to reach the greatest number of low income households and facilitate formal microinsurance services across the countryside using a partnership model.  In this model, commercial insurers carry the risk and the rural banks can disseminate information and help facilitate collections and disbursements to clients in the countryside.

A series of two articles was published in Business World presenting an extensive view of the prospects for facilitating greater access to microinsurance services through Philippine rural banks. According to the article, the Bangko Sentral ng Pilipinas (BSP) is open to the proposal of the Rural Bankers Association of the Philippines (RBAP) to allow a partnership model. The articles also stated that the BSP is expected to release a circular soon, setting forth the conditions for allowing rural banks to distribute microinsurance services, thereby greatly expanding access for millions of Filipinos.

Visit Business World or download articles in PDF here:

Part 1: Poor benefit from microinsurance Download PDF file

Part 2: Poor offer huge untapped market Download PDF file