oro integrated cooperative - munich re foundation · 2020. 11. 4. · floriano hilot subject: s8...
Post on 24-Mar-2021
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ORO INTEGRATED COOPERATIVE
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Where Financial Freedom begins!
INTEGRATED RISKMANAGEMENT SOLUTIONS
FLORIANO R. HILOTChief Executive Officer
OIC
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Background• Mindanao Philippines :
• Second largest island in the Philippines , all 3 organizations I’m working with are head quartered in Mindanao
• The Philippines experiences about 20 typhoons every year.• The devastating Sendong and Pablo typhoons in 2012 / 13 are still fresh in the minds of the residents• This year, this region has experienced several earthquakes as well
• Impact Insurance Partner :• CLIMBS General Insurance Cooperative provides the insurance to the members of the Co-ops. Mandatory
Insurance is bundled with credit and savings. Voluntary insurance is also offered through the cooperatives to its members
OIC
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• The first community-typed coop in the region since 1966• It started with P88.00 ($1.50) as start up capital • # 9 in terms of Assets from among the 25,000 registered coops in the
Philippines and # 5 in terms of Capital Adequacy.160,000+ members 18 branches AssetsP5.7Bn ( $114Mn)
• Services to members:
LOANS SAVINGS INSURANCE HEALTH CARE BILLS PAYMENT
OIC
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Product Development ObjectivesIncrease Long Term Savings Deposit for the Coop
Provide assistance to members in managing risks
Encourage members to use savings rather than taking loans for emergencies.
OIC
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How the project was started?
• Forged partnership between OIC and CLIMBS with the guidance of
International Labour Organization (ILO).
OIC
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Product Design Methodology
One on one interview with members including FGDs
Questions about risks faced, coping mechanism, saving and credit behavior
Interviews with staff
Brain storming product ideas
OIC
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Customer Insight (1)
RISKS FACED
COPING MECHANISM
Health Crop Failure Calamities
Most savings are used for loan repayment Save at Co-Op (Regular savings/ Share Capital) In crisis – prefer to take loan Very low awareness on products offered
Borrow from Co-Op Borrow from Relatives
SAVINGS
OIC
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Customer Insights (2)
FUTURE RISK
INSURANCE
Most members say that hospitalization expenses is a concern Most members also regard loss on account of
calamities – typhoons / floods as a concern
Most members have access to Phil Health
Mortuary insurance is provided as member benefit
Some members have HEALTH & WELLNESS PROGRAM – offered by CLIMBS – It is a hospitalization program that covers the whole family.
EXPECTATION 85% Interested in Education Savings Plan 90% customers would be interested in a saving
plan for “ health “ purpose
OIC’s SAFE PLUS – For the Co Op Kid!
11/4/2020
Long Term Savings and Systematic
Withdrawals
Bundled Insurance
Savings and Interest Rate
Purpose – Build College Fund
1 2
3 4
• To save for and secure your child’s college costs
• Member - depositor , Nominee – child ( 0 -12 years age)
• Withdrawals after nominee starts college/ is 17
Free Life Insurance
On death of member during deposit period, accumulated balance gets doubled up to max. of P250,000
Deposit term : 17- Age of child/ 10 which ever is lower
Waiting period – Till child reaches 17/starts college
Withdrawals over 4 years in 2 installments per year
• Interest Rate @ 6%
• Min Saving – P6,000p.a ($120)
• Max Savings – P60,000 p.a($1200)
OIC’s Health & Disaster Savings
11/4/2020
Long Term Savings and Withdrawals
Bundled Insurance
Savings and Interest Rate
Purpose – Build Fund for an emergency
1 2
3 4
• To save for an emergency
• Health and Calamities (Fire, Earth Quake, Typhoon, Volcanic Eruption, Floods)
• Free Calamity Insurance on accumulated balance reaching P5000
• 100% Property damage due to natural calamity – P6500 ($130)
• P500 Health ($10) Reimbursement due to peril
• Deposit term : Min 5 years• Withdrawals in case of
emergency only
• Interest Rate @ 5%• Min Saving –
6,000p.a($120)• Max Savings – 30,000 p.a
($600)
OIC
• Product was launched in first week of March 2020 , a week before the national lockdown
• Accounts Opened:• 30 Health and Disaster – Savings collected PHP 15,000 ($ 312.50)• 25 SAFE Plus – Savings collected PHP 12,000 ($ 250.00)
• Feedback:• Pandemic has delayed enrolment of product • Members were excited about the “bundled insurance”• Members would like a higher cover of insurance for Health and Disaster• Members wanted “ Fire” to be included in the perils covered.
• Latest Update• 420 Health and Disaster – Savings Collected PHP 430,000 ($8,958)• 380 SAFE Plus- Savings collected PHP 385,000 ($8,020)
• Interventions- Effective November 2020, all Staff and Officers are mandatory to be enrolled with the H&D deposit
Launch Results
OIC
• Member needs to be educated on the importance of long-term savings• Management should be persistent in pushing the product • There should be a CHAMPION from among the team members as an advocate of
savings consciousness and literacy.• Product awareness amongst members is a challenge• Staff motivation paralleled with incentive plan will countervene the “mañana
habit” (later only) of Filipinos• Introduced an incentive program for the first time
• In both products developed, we are trying to ensure that members use their savings for expected expenses vs taking a loan
• Oftentimes when product is bundled with insurance, the tendency is that member is not aware of the insurance component.
Key Learnings
OIC
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"Success is not final; failure is not fatal: It is the courage to continue that counts."
Winston Churchill
https://www.facebook.com/taranasaOIC
+63-0917-301-1217
renehilot.oic@gmail.com
https://orointegrated.coop/
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