Isabela rural bank eyes microinsurance

MANILA, Philippines - The First Isabela Cooperative (FICO Bank) is expanding its services to its microenterprise bank clients, the latest being microinsurance. With the help of the Microenterprises Access to banking Services (MABS) program, the rural bank is presently focusing on credit life, more commonly known by bank clients as loan insurance.

The MABS program is a collaboration of the Rural Bankers Association of the Philippines (RBAP) and the United States Agency for International Development (USAID). Last month, MABS visited the bank to review its existing microinsurance services and conduct a microinsurance client demand research within the bank’s area of operation.

The visit included interviews and surveys in four of the bank’s branches to determine the demand of the bank’s existing and prospective clients for insurance services. FICO Bank hopes that with microinsurance, it can provide a risk protection mechanism to respond to its clients’ needs in critical times such as death or severe illness of a household member.

It is considering engaging a licensed commercial insurance provider for its microinsurance services, as it has for several years with its micro-borrowers’ credit life insurance. Meanwhile, RBAP will hold its national convention on May 31 and June 1 at the Grand Ballroom, Sofitel Philippine Plaza-Manila.