RBAP-MABS Trains 15 Mindanao Rural Banks on Basic Microinsurance

On June 23-24, RBAP-MABS and RBAP-RBRDFI jointly conducted a two-day training on the fundamental concepts and principles of Microinsurance for fifteen (15) rural banks operating in Mindanao. The event marked the 6th batch of rural banks trained by RBAP since the initial pilot in January 2011.

CDO MI Training 1

The training employed a variety of simulation activities, group interaction and workshops to instill among participants practical knowledge and skills on MI sales and servicing.

To date, a total of 130 individuals from the rural banking sector successfully completed the RBAP MI Basic Training course. Among their primary tasks after being trained is to determine with their bank heads or board of directors (BOD) the bank’s commitment and readiness to pursue distribution of formal microinsurance.  The trainees were also encouraged to arrange for the prompt submission to the Bangko Sentral ng Pilipinas (BSP) of the bank’s request for No Objection Notice to sell, market and service microinsurance. The BSP’s No Objection Notice is requisite to the Insurance Commission’s (IC) acceptance of the bank’s application for MI Agent/Broker licensing.

CDO MI Training 2

The training highlights the turn-key approach developed by RBAP-MABS for RBRDFI to efficiently assist rural banks to comply with MI Agent Licensing requirements and procedures of the IC and the BSP. It emphasizes the importance of working with RBAP to ensure cost-efficiency of their licensing application.

CDO MI Training 3To help the participants easily remember the steps for licensing, the T-R-A-C-S process was introduced:

  1. TRAIN on Microinsurance Basic and Product Mastery;
  2. REQUEST for a No Objection Notice from the BSP;
  3. ASSEMBLE the Microinsurance Core Team;
  4. CHOOSE the bank’s partner-insurer well; and
  5. SUBMIT complete requirements to RBAP.

The objective of the training was to introduce “T-R-A-C-S” as a simple and clear trigger mechanism for rural banks to effectively implement Microinsurance activities.

The training culminated in each bank’s formulation of an Action Plan, a tool for the rural bank’s MI team to reference to guide effective and responsible distribution of Microinsurance as licensed agents or brokers.

The next batch of Microinsurance Basic Training is eyed for July 14-15 in Cabanatuan, Nueva Ecija.