Business World
Finance
Posted on September 30, 2011 07:35:24 PM
MOBILE MICROFINANCE bank BPI Globe BanKO will begin offering microinsurance after partnering with two other subsidiaries of the Bank of the Philippine Islands.
In a statement, BPI Globe BanKO said it has partnered with BPI Philam Life Assurance Corp. (BPI-Philam) and BPI-Mitsui Sumimoto Insurance Corp. (BPI/MS) to offer insurance products that are affordable and targeted at low-income earning Filipinos.
BPI-Philam, the bancassurance arm of BPI, is an alliance between BPI and the Philippine American Life and General Insurance Co., the country’s biggest life insurance company.
BPI/MS is a joint venture between BPI and Mitsui Sumimoto Insurance Co., a non-life insurance company based in Japan.
BPI Globe BanKO on Friday launched three microinsurance products, namely, PondoKO, PuhunanKO and PaniguroKO.
PondoKO entitles an individual to life insurance and to a 1% interest rate per annum on his or her deposit once this reaches P2,000.
In the event of death -- regardless of the cause -- his or her beneficiary will get five times of the amount of cash in the account.
PuhunanKO provides both life insurance and loan coverage. An individual who purchases this will entitle his or her beneficiary to P10,000 and to 100% loan coverage in case he or she dies.
PondoKO and PuhunanKO are offered in partnership with BPI-Philam.
PaniguroKO, offered in partnership with BPI/MS, gives the account holder access to a life insurance policy that costs only P365 for a one-year coverage.
With PaniguroKO, an account holder is entitled to a P50,000 coverage for accidental death, P5,000 assistance in case of fire and P2,500 assistance in case of flood, typhoon and earthquake. This insurance can be purchased through mobile phones, thus doing away the need to fill out documents.
"Through BanKO’s ’banking the unbanked’ concept, the market that other banks have failed to reach will be given options and this is a very good way of giving back. We at BPI-Philam are hoping that more from the lower income segment will be empowered and will appreciate the need to save," Stephen James Clark, BPI-Philam president and chief executive officer, was quoted as saying in the statement.
"Getting an insurance used to be expensive or at least that’s what a lot of people think, especially those who are not familiar with it. Through the BanKO-BPI/MS partnership, we hope more people will realize the value in securing one," Mr. Takaaki Ueda, BPI/MS president and chief executive officer, was also quoted as saying in the same statement.
In the same statement, BPI Globe BanKO said it had partnered with the German Agency for International Cooperation to conduct financial literacy seminars nationwide. This is in line with the bank’s objective to educate depositors on the importance of insurance. The seminars will begin in the fourth quarter of this year and will run up to next year.
BPI Globe BanKO is a savings bank that handles the mobile microfinance operations of BPI, the country’s third largest in terms of assets.
It is a shared venture between BPI, Ayala Corp. and Globe Telecom, Inc. The bank uses Globe’s GCash platform to electronically transfer funds to microfinance institutions and individual borrowers. -- Ann Rozainne R. Gregorio
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