NRT 2011 May 23-24, 2011 Manila Session 9: Responsible and Effective Sales, Marketing and Servicing of Microinsurance by Rural Banks By: Mr. Gerardo Butardo, Deputy Director of the MSME Finance Specialist Group of the Bangko Sentral ng Pilipinas (BSP) Supervision and Examination Sector

2. MICROINSURANCE
REGULATORY FRAMEWORK: MARKETING, SALE & SERVICING
GERARDO A. BUTARDO
Deputy Director
MSME Finance Specialist Group
Supervision and Examination Sector

3. Presenta(on Outline
• Microinsurance Defined
• Regulated Microinsurance Services
• Proper Offering of Microinsurance Services
• Requirements for Authority to Offer Microinsurance

4. Microinsurance Defined
• IC Circular No.1‐2010 dated 01‐29‐10
– an acLvity providing specific insurance, insurance‐
like and other similar products and services that
meet the needs of the low‐income sector for risk
protecLon and relief against distress, misfortune
and other conLngent events

5. Regulated Microinsurance Services
• Circular No. 683 dated 23 February 2010
– PresentaLon/markeLng
– Sale
– Servicing

6. Proper Offering of Microinsurance Services
• Memo To All Rural, CooperaLve and ThriW Banks
(M‐2011‐015 dated 18 March 2011)
– Secure license from IC as agent or broker
• BSP “No ObjecLon NoLce”
• Undergo microinsurance training and pass
qualifying exam; and
• Amend ArLcles of IncorporaLon
– Partner with Licensed MI Provider
– Secure authority from BSP

7. REQUIREMENTS FOR AUTHORITY TO OFFER
MICROINSURANCE SERVICES
• Board approval
• Contract with MI provider/partner
• IC approval of products to be marketed/sold
• CerLficate of Authority of MI provider
• License as MI agent or broker
• CerLficaLon of Bank’s conLnuing compliance with
exisLng guidelines

8. THANK YOU
www.bsp.gov.ph
gbutardo@bsp.gov.ph