Managing Director Zaldy W. Pacificar of Katipunan Bank shares the bank experience on providing microinsurance products and services to their clients during the 2012 RBAP-MABS National Roundtable Conference on June 8.
Falcon Invoice Discounting: Unlock Your Business Potential
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The Katipunan Bank Experience
1. Session
 7:
Â
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 Transforming MI from Service to Business
Â
The
 Ka'punan
 Bank
 Experience
Â
Â
Â
Zaldy Pacificar
Managing
 Director
Â
2012 RBAP-MABS National Roundtable Conference
June 7-8, 2012
Hyatt Hotel & Manila
Â
2. Passing
 on
 the
 risks
Â
Zaldy
 Wong
 PaciďŹcar
Â
June
 8,
 2012,
 Hya=
 Hotel,
 Malate,
 Manila
Â
3. Ka@punan
 Bank
Â
â˘âŻ Organized
 by
 Businessman
 Gregorio
 P.
 Alano
 and
 his
 wife,
 Mrs.
 Bienvenida
 T.
Â
Alano
 in
 1978
 to
 provide
 Financial
 services
 in
 the
 municipality
 of
 Ka@punan,
Â
Zamboanga
 Del
 Norte.
Â
â˘âŻ On
 January
 29,
 1979,
 Bangko
 Sentral
 ng
 Pilipinas
 (BSP)
Â
 authorized
 âRural
 Bank
Â
of
 Ka@punan
 Inc.â
 to
 open
 its
 doors
 to
 the
 public
Â
â˘âŻ Consolidated
 with
 Plaza
 Rural
 Bank
 of
 Carcar,
 Cebu
 on
 2008
Â
â˘âŻ A[er
 consolida@on,
 âRural
 Bank
 of
 Ka@punan
 Inc.â
 changed
 its
 name
 to
Â
âKa@punan
 Bank
 (ZN)
 Inc.â
Â
â˘âŻ Has
 more
 than
 1
 billion
 resources
 as
 of
 May
 31,
 2012
Â
â˘âŻ Has
 a
 camelâs
 ra@ng
 of
 4
 (BSP
 Examina@on
 for
 the
 year
 2011)
Â
â˘âŻ Has
 more
 than
 200,000
 clients,
 42,000
 of
 whom
 are
 MicroďŹnance
Â
4. KB
 Mutual
 BeneďŹt
 Associa@on
 Inc.
Â
Â
(KB-ÂâMBAI)
Â
â˘âŻ Approved
 by
 SEC
 on
 September
 8,
 2008
Â
â˘âŻ Approved
 by
 IC
 on
 October
 20,
 2009
Â
â˘âŻ Organized
 by
 Ka@punan
 Bank
 Inc.
 as
 its
 primary
 Microinsurance
 provider
Â
â˘âŻ OďŹered
 Life
 insurances
 to
 KBâs
 MI
 clients
 (Dependents
 not
 covered)
Â
â˘âŻ Ini@ally
 oďŹered
 health
 beneďŹts
 to
 both
 the
 Principal
 &
 their
 dependents.
Â
â˘âŻ Stopped
 oďŹering
 health
 beneďŹts
 in
 2011
 due
 to
 Fraudulent
 claims
Â
â˘âŻ A[er
 3
 years
 of
 opera@on,
 the
 associa@on
 is
 being
 dissolved
Â
Â
5. The
 Lessons
Â
1.)
 50%
 of
 the
 premium
 the
 client
 paid
 is
 returned
 as
 an
 equity
 of
 the
 payor
 a[er
Â
resigning
 from
 the
 associa@on.
Â
2.)
 Health
 insurance
 has
 high
 fraudulent
 risks.
Â
3.)
 Turnaround
 @me
 of
 processing
 claims
 is
 quick
 but
 very
 costly.
Â
4.)
 The
 allowable
 expense
 for
 Administra@ve
 work
 is
 not
 ďŹnancially
 viable
 (IC
Â
only
 allowed
 25%).
Â
5.)
 More
 of
 a
 service
 than
 a
 business.
Â
Microinsurance
 is
 not
 something
 that
 we,
 as
 social
 entrepreneurs,
 can
 consider
 as
Â
our
 core
 business.
 However,
 Ka'punan
 Bank
 acknowledges
 its
 importance.
Â
Â
Hence,
 we
 opted
 to
 pass
 on
 the
 risks.
Â
6. The
 Strategy
Â
Ini@ated
 the
 comple@on
 of
Â
all
 Statutory
 requirements
Â
Determined
 the
 Implementa@on
Â
right
 Partner
Â
Mapped
 out
 the
 Transi@on
Â
strategy
Â
â˘âŻ TAT
 to
 process
 â˘âŻ Compliance
 â˘âŻ Stabiliza@on
Â
â˘âŻ Financial
 Status
 â˘âŻ To
 â
 be
 process
 â˘âŻ Governance
Â
â˘âŻ Industry
 impression
 â˘âŻ People
 readiness
Â
â˘âŻ Market
 reach
 â˘âŻ System
 readiness
Â
â˘âŻ Flexibility
 â˘âŻ Risk
 mi@ga@on
Â
7. Our
 Partners
Â
Case
 Study:
 Case
 Study:
Â
The
 Sendong
 Experience
 was
 the
 BODâs
 The
 capacity
 of
 Globe
 is
 the
 BODâs
 deciding
Â
cri@cal
 case
 study
 in
 deciding
 for
 the
 right
 point.
 Hence,
 KB
 chose
 Globe
 for
 its
Â
partner.
Â
 Ka@punero
 card.
Â
â˘âŻ Flexible
 to
 oďŹer
 some
 health
 beneďŹts
 â˘âŻ Flexible
 to
 our
 terms
Â
â˘âŻ Flexible
 to
 ProďŹt
 sharing
 â˘âŻ Trained
 our
 people
Â
â˘âŻ Quick
 to
 respond
 to
 our
 needs
Â
Â
â˘âŻ Quick
 to
 train
 our
 people
Â
â˘âŻ Helped
 us
 from
 Day
 1
Â
8. Commercials
Â
#
 of
 Clients
 KBMBAI
 PIONEER
Â
30,000++
 PhP
 90,000++
 Above
 PhP
 400,000
Â
* KBMBAI amount was computed based on previous agreement
* Received by the bank for April 2012