More rural banks complete training for Microinsurance agent licensing

MI training for La Union Fed 1

Eight more rural banks successfully completed the two-day Basic Microinsurance Training Course conducted on March 3-4 by the Rural Bankers Research and Development Foundation Inc (RBRDFI) and the USAID-supported RBAP-MABS program. This is in addition to the pilot batch of nine banks trained by RBRDFI on January 27-28.

MI training for La Union Fed 2The training fulfills an important requirement for these rural banks to proceed to the other steps required by the Insurance Commission (IC) and Bangko Sentral ng Pilipinas (BSP) for licensing banks as agents or brokers of formal insurance providers.  The training is part of the package of services that RBRDFI and RBAP-MABS have put together to provide assistance to member-rural banks in the process of getting an agent’s or broker’s license for microinsurance.

Encompassing Microinsurance 101 topics, the training culminated in a qualifying exam that all 29 participants successfully passed.  The banks will have to go through one more day of product mastery training with their respective insurance provider. The regulatory criteria and requirements are found in BSP Circular 683-2010 and Insurance Memo Circular 6-2011.

In the interest of making the process of licensing application and documentation easy for rural banks, those attending the training receive the set of standard guides and templates for the forms and documents required by regulatory entities, which include the IC, the BSP and the SEC. Several of the first batch of rural banks that attended the training have already taken the next step after the training by sending to the BSP a letter of intent/request for no objection notice to be a microinsurance agent.

To further support member-rural banks wanting to become agents or brokers, the microinsurance team at RBRDFI has been trained to help rural banks along the licensing process. One the rural banks submit the requirements to the RBRDFI, the team will review them for completeness, submit them to the IC and the BSP, and monitor/follow up with the regulatory entities.

This valuable assistance to member-rural banks is implemented under the RBRDFI Microinsurance Initiative supported by the International Labor Organization (ILO) Microinsurance Innovations Facility. The initiative primarily aims to install a turn-key or easy-step system for rural banks wishing to be licensed as microinsurance agent or broker. Rural banks will be assisted through licensing procedures of the BSP and the IC through the most cost-efficient means possible. The RBRDFI MI Initiative is designed to enable rural banks to become effective and responsible providers of formal insurance products for the low-income market.

Participants of Microinsurance Basic Training Course held last January 27-28

Participants of Microinsurance Basic Training Course held last January 27-28

Training participants taking the Microinsurance Qualifying exam

Training participants taking the Microinsurance Qualifying exam

Following the pioneering example of the La Union Federation, RBAP-RBRDFI will coordinate with all interested rural bank federations to conduct a series of training events to reach more rural banks interested in becoming microinsurance agents.

Interested in the training schedules and package of services of RBRDFI on microinsurance? You may contract RBRDFI Project Coordinator Ghay Lyne Mapano through gpmapano@yahoo.com or MABS Microinsurance Coordinator Ruth Aseron through microinsurance@rbapmabs.org.