CARD M-I Agents: Bringing microinsurance down to the grassroots

MANILA, Philippines - A new breed of agents being trained by CARD (Center for Agriculture and Rural Development) are ready to make insurance available to every Filipino, even in the vastly untapped rural areas.

The CARD Microinsurance Agents or MI-Agents, a first in the insurance industry, are fondly called nanays, but they are tough and focused on their mission to make it known to more Filipinos that these products are within their reach.

“Getting through to the grassroots was not possible utilizing the regular distribution channel of regular insurance products, much more with the conventional insurance agents,” said CaMIA president Alex M. Dimaculangan. “To be able to reach the marginalized sector, a different type of distribution network is needed, along with a different mindset in marketing and sales of insurance products and services.”

In the world of microinsurance, accessibility means everything. To the majority of Filipinos, traditional insurance is deemed inaccessible — expensive, offered only in the big cities, difficult to maintain. Thus, as part of its mission to empower the poor, CARD reinforces its microfinance programs by offering insurance products that are affordable, leveraging on the strength of its network of members.

Most CARD nanays have experienced first hand the benefits of microinsurance, and so are easily able to share its value with their peers. The power of their testimony has convinced many women to set aside money for coverage that protects their families and property, Dimaculangan said. “Since the insurance business is based on trust, we needed a sales force that could be trusted not only by the insurance provider but by their peers in the countryside.”

The CARD nanays have passed certain qualifications including sales training. As MI-Agents, they are authorized to sell the PAID Plan, coverage developed specifically for CARD members by CARD Mutual Benefit Association Inc. [CARD MBA] and the Pioneer Group of insurance companies.

The PAID Plan is affordable and includes personal accident, property insurance and a funeral benefit. Sales training for MI-Agents began in December 2009. To date, almost 900 MI-Agents have attended these sessions; 635 are considered active. Their contribution is invaluable — the MI-Agents account for 60-70 percent of CaMIA’s total monthly production. They likewise are the link between CARD management and members, assisting in claims assessment and validation and helping to address the questions of policyholders through their presence in regular center meetings.

Fely Chan, an MI-Agent herself, said being a PAID Plan holder has helped her convince others that the coverage is worth the small investment.

“It helped a lot that I am a PAID Plan holder because I was able to convince many others to buy. Whenever I explain the benefits these products offer, I tell them that we ourselves are plan holders,” she said.

Chan said there is also an added satisfaction in having sold a product that truly benefits people. “I’m happy that I was able to help those who were affected by typhoons. They were able to replace their damaged roofs through their plans.”

This month, CARD bolsters its support for the MI-Agents by introducing another industry first, the MI-Adjusters or the Microinsurance Claims Adjusters, whose role is to validate claims, helping to speed up the process by verifying the claimant’s necessary information. When bulk losses come in due to natural disasters, the MI-Adjusters will provide much-needed manpower to make certain that the benefits reach policyholders as soon as possible.

“Working with an organization such as CARD has given us important lessons on microinsurance,” Geric Laude, Pioneer Life vice president for microinsurance, pointed out. “Through their system of MI-Agents, we are harnessing the advantages of community to reach out to more Filipinos with the benefits of microinsurance.”