BPI Globe Banko launches m-insurance products

Posted: December 7th, 2011  |   viewed: (1,659)  |   Comments: ( 0 )  |  Topic: Blog Post, Insurance  |   Region: East Asia Pacific

Share: By Camilo Tellez

Poor people in developing countries live and work in risky environments, vulnerable to illness, accidental death and disability, loss of property due to theft or fire, agricultural losses, and natural and man-made disasters.  As a result, the mobile financial services industry is designing a range of products which can help the BOP hedge against some of these risks, thereby reducing their vulnerability and as a consequence, enabling them to improve their lives.

This month, BPI Globe BanKO, the mobile microfinance bank in the Philippines has announced it is launching three m-insurance products.  BPI Globe BanKO is a joint venture between the Bank of the Philippine Islands (BPI), a commercial bank; and Globe/ GCash which offers loans and savings services to individual clients and microfinance institutions (MFIs).  In this model,   BanKO issues loans and maintains savings accounts, while Globe/GXI is the bank’s distribution partner carrying out functions in account acquisition.

The three new products being offered are as follows:

• PondoKO: Entitles individuals to life insurance paying five times the balance of contributions and interest earned on savings deposits once the balance reaches an amount equivalent to USD46. This product is linked to a personal savings account.

• PuhunanKO: Provides a life insurance benefit of USD 231 plus the amount of any outstanding loan balance. This product is linked to small-scale loan offered to BanKO’s accountholders.

• PaniguroKO: Offers coverage for accidental death, flood, typhoon or earthquake damage. The PaniguroKO policy costs USD 8.50 for one year of coverage.

Earlier this year, Mercy Corps had announced plans to fund a USD 1 million partnership with BPI Globe BanKO to expand the uptake of mobile financial services. Mercy Corps has been offering assistance in the application of mobile technology and the design of financial products tailored to poor people, enabling BPI Globe BanKO to increase the use of financial services through cell phones. The work is funded by a grant by the Bill and Melinda Gates Foundation to build innovative financial services in Indonesia and the Philippines.