3:30 – 3:33 Opening message and house rules Dr. Antonis Malagardis, Moderator

3:33 – 4:10 Speaker 1:Mr. Arup ChatterjeePrincipal Financial Sector Specialist, Asian Development Bank

Speaker 2:Ms. Emily ColemanFinancial Inclusion and Insurance Expert, INSURED, International Fund for Agricultural Development, (IFAD)

Speaker 3:Dr. Jaime Aristotle AlipFounder and Chairman, Center for Agriculture and Rural Development, Mutually Reinforcing Institutions (CARD MRI)

4:10 – 4:40 Panel Discussion & Q&A Moderator, resource speakers & participants

4:40 – 4:45 Wrapping up, Key takeaways, Experience Survey & Closing of sessionModerator

Agenda

House Rules1. Please turn off your microphone and

webcam to conserve internet bandwidth and allow for an uninterrupted webinar.

2. If you have questions, please post them in the chat. The moderator will pick them up during the Q&A session.

3. You can access the slides and the recording of the webinar on the MEFIN homepage in a few days after the event.

The diverse faces of the informal sector: takeaways for insurance

Arup ChatterjeePrincipal Financial Sector Specialist

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Outline

• Understanding the informal sector

• Risks and vulnerabilities

• Risk sharing and transfer options

• What could the new normal look like?

Source: https://devpolicy.org/microfinance-and-the-informal-economy-under-covid-19-20200624-2/

Understanding the informal sector

Source: https://www.stitcher.com/podcast/informal-economy-podcast-social-protection

Source: Dasgupta, Nandini and Tony Lloyd Jones, Heterogeneity and vulnerability in the urban informal economy: Reworking the problem in the current context. The case of Uganda, World Development Perspectives, Volumes 10–12, June–December 2018

Source: Godfrey Paul C, Toward a Theory of the Informal Economy, Academy of Management AnnalsVol. 5, No. 1

Risks and vulnerabilities

Souce: https://www.csis.org/analysis/case-disaster-smart-agriculture-2017-reflections Source: https://www.preventionweb.net/disaster-risk/risk/vulnerability/

Source: https://www.bbc.com/news/world-asia-india-52106565 Source: https://www.eastasiaforum.org/2020/06/20/indias-lockdown-locks-out-the-poor/

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What could the new normal look like?

Source: https://thediplomat.com/2020/06/the-pandemic-revealed-indias-invisible-workforce

Thank you

Source: https://www.nytimes.com/2019/07/06/opinion/sunday/public-option.html

The diverse faces of the informal sector: smallholders

MEFIN PPD9

Funded by Sida, implemented by IFAD through PARM

Goal to: build the resilience of poor rural households, increase their capacity to manage risk, and strengthen their livelihoods

Provides technical assistance to IFAD’s portfolio: Policy and strategy for governments Feasibility assessment and implementation with market-actors; and Capacity building and knowledge management at all levels

Global programme with 9 core countries in Asia-Pacific and Africa: Bangladesh, Burkina Faso, Cambodia, Ethiopia, Indonesia, the Philippines, Uganda, Viet Nam and Zambia.

INSURED programme

The rural poor: Diverse target groups & approaches

Cross-cuttingtarget groupinclusion, i.e.gender and youth

Vulnerable groups(poor and non-poor)in disaster-proneareasGovernment-backedmacro level disasterinsuranceGovernment-backedmacro levelcontingency fund

Why a gender-inclusive approach?

• Strengthening women’s contribution to the rural economy, protect their specific vulnerabilities, and entire households

• Rural women: 50% + of the agricultural labour force in developing countries • Women and men respond to risks differently, women are harder hit by shocks• COVID-19: reported women are likely to be hit harder by value chain disruptions • Women traditionally in charge of risk management in the family and often also of

household financial planning • More active in social networks, and have access to groups or associations that

can be used to scale up the delivery of insurance products• Some contexts, women farmers have been shown to be more open to

purchasing insurance than male farmers• Insurers can scale up their markets and make offerings sustainable

Challenges to women’s access to agricultural and CRI

• Women often unable to access insurance solutions and are excluded from their benefits

• Agricultural and CRI products and schemes often designed and delivered without considering the different needs and constraints of women farmers

• Challenges to women’s inclusion include:• Restricted access to resources• Lower levels of land and livestock ownership• Lower levels of education and literacy• Exclusion from formal financial systems• Time restrictions and heavy burden of other household work

What to do - Solutions along the insurance value chain

How to do it Including women from the beginning

Checklist to guide designers and implementers:

1. Gender-sensitive demand assessments for insurance2. Develop insurance literacy materials understood by women

and men, and information dissemination approaches for both groups

3. Sensitize and build capacity of the private sector and ministries

4. Support development of distribution models that work for the female farming community

5. Capture and monitor sex-disaggregated data

Thank you!

e.coleman@ifad.org

Insurance for the Informal Sector: The

CARD MRIApproach

Dr. Jaime Aristotle B. Alip

Founder and Chairman Emeritus

9th MEFIN Public Private Dialogue: De-Risking Climate and Pandemic Disasters

September 29, 2020

CARD MRI At-A-GlanceAs of July 2020

24M insured individuals

10 Billion claims paidfrom 1999-present

95.39% claims settlementin 8-24 hours

PhP26.46 Billion Loan Outstanding

6.8M clients outreachinformal sector, agricultural sector microentrepreneurs, small businesses

18,564 Fulltime Staffdeployed in all 85 provinces including NCR, 96%(1,580) of cities/ municipalities and 96% (40,450)of barangays

CARD, Inc.-CARD Bank-CARD SME-CARD MBA-CARD RBI -

CARD MRI Microinsurance Group

Covers the life insurance,retirement, and loans of members

Delivers affordable life & non-lifeinsurance products and servicesto help members get back ontheir feet after any calamity

• CARD Microinsurance Group continues paying claims amidst Covid-19 with 232,488 settled cases with P933.80 million total amount ofclaims payment from March 17 to August 2020 (P549.8 million claimspayment for deaths with 216 cases/day; 56 members/ dependents are confirmed Covid-19 cases with P1,695,904.10 claims paid). Below is the breakdown of claimsper our insurance products:

Reaching the Low Income Sector amidst the Pandemic

Amount(in million)

Basic Life Insurance 115,640 672.10 Retirement Fund 86,821 76.50 Credit Life 7,145 81.90 Golden Life Insurance 542 16.70 Family Security Plan 20 1.10 Other Optional Life Products 2,532 11.00 SAGIP Plan 9,975 43.90 KABUKLOD Plan 1,316 13.90 DAKILA Plan 137 5.30 BINHI 20 0.10 CARD Care 8,115 9.10 Medicash 225 2.20 TOTAL BENEFITS 232,488 933.80

Insurance Benefits Count

• Ensure fast claims settlement through theuse of alternative delivery channels toaddress mobility restrictions

• Allowed insurance renewal online duringthis time of pandemic

• Provides member virtual/online educationand training to keep them aware of theirprotection and insurance coverage

• Continues relief good efforts to disasteraffected members (recent typhoon andearthquake) with total 128,615 number ofmembers affected

Reaching the Low Income Sector amidst the Pandemic

Provision of different insurance products depending on member/clients need

Reaching the Sub-Segments of the Informal Sector

Product Name

Basic Life Insurance

Golden Life Insurance

Plan

SAGIP Plan

CARD Care insurance (Health)

Kabuklod Plan

SAGIP Negosyo

BINHI Crop

Insurance

Target Segment

Clients/ Members

Clients/ Members above 70yrs old

Clients/ Members

General Public

Clients/ Members

For organized groups

Sari-sari store owners

Farmers

Benefits

Death Benefit, Accidental Death Benefit, Total and Permanent Disability Benefit, Motor Vehicular Accident Hospitalization Benefits

Death Benefit Personal Accident, Funeral Benefit, Calamity Aid

Daily Hospital Benefit, Personal Accident Benefit

Personal Accident, Funeral Benefit, Fire Cash Assistance

Accidental Death and Dismemberment Benefit, Calamity Aid for Fire/ Lightning, Typhoon/ Flood

Crop insurance due Flood and typhoon

Policies Sold Per Product

2018 2019 August 2020 2018 2019 August 2020

Distribution Channels

Distribution Channels CountCARD MRI Branches/Unit Offices 3,412

MBA Coordinators 1,985Microinsurance Supervisors 72Microinsurance Coordinators 2,022TOTAL 7,491

CARD MRI Strategy to Effectively Offer Insurance Product to Informal Sector• Ensure affordability and that frequency of premium

payment is acceptable to their cash flow.

• Provides bundled insurance products (i.e. lifeinsurance with personal accident and disasterinsurance coverage), daily hospitalization incomebenefit, credit life insurance, among others.

• Value-addition are the non-financial services suchas FinLit training, medical missions, partnershipwith local doctors/dentists/etc., mass wedding, etc.

• Provides easy access on product distribution thruMicroinsurance Coordinators who are clients ofCARD MRI.

• Ensure fast settlement of claims despite of thepandemic thru the implementation of digital toolssuch as chatbot, mobile app, Konek2CARD, CARDSulit Padala).

Dr. Alip climbs up a locked CARD MRI Branch in Ormoc City ashe joins the search team to personally visit branches, membersand staff in the affected areas of CARD MRI a day afterTyphoon Yolanda subsided.

Thank you

Panel Discussion & Q&A

Key takeaways

Experience survey

https://forms.gle/K2hUfm8xQNsnaqR89

Please take 1 minute to provide your valuable feedback to this session. Your input helps us to ensure high-quality events also in the future.

Closing of session