CARD Pioneer earns microinsurance benchmark

Belgium-based Microinsurance Master recognized CARD Pioneer Microinsurance Inc. as the global benchmark for its successful approach to protecting the low-income market segment through simple, affordable, and accessible microinsurance solutions.

Microinsurance Master Founder Bert Opdebeeck said there is no other organization in the world that champions microinsurance like CPMI.

"No wonder they are the only microinsurance company that was able to achieve a massive reach in the Philippines," Opdebeeck revealed in a recent forum.

Opdebeeck recently held the Microinsurance Master Acceleration Program for the fourth time in the Philippines out of six runs to date "because the story and business model of CPMI is an ideal benchmark for the global delegates who are senior insurance executives from 14 different countries."

"CPMI is a perfect case study because they have the mileage and track record which prove that the customer-centric approach to microinsurance is powerful," Opdebeeck said.

During the panel discussion between Pioneer Group Head Lorenzo Chan Jr. and CARD MRI Founder Dr. Jaime Aristotle Alip, they shared the beginnings of CPMI, the challenges they faced, and their successful customer-centric microinsurance business model, driving enrollments beyond 20 million in 2023.

Chan, who is also the global Microinsurance Network chairperson, revealed that CPMI's game-changing microinsurance business model was founded on good faith and trust.

"It took both Pioneer and CARD MRI to take a leap of faith and trust in each other as they sought to disrupt traditional industry standards to better serve customers and look beyond the short term," Chan said.

Dr. Alip also shared that it is crucial to act with urgency in releasing claims to low-income customers in their time of need to gain trust.

"We wanted a maximum of five days for customers to receive their insurance claim, which was unheard of in the industry when we started. Pioneer was able to deliver that despite the huge risks at that time. Today, our target is from eight to 24 hours because of digitalization," Dr. Alip said.

In 2023, CPMI premiums reached 1.5 billion pesos and paid a total of 314 million pesos in microinsurance claims to the low-income segment.

Opdebeeck said the delegates appreciated the insights on how to disrupt the industry to better serve customers from the low-income sector.

"They also gained a deep understanding of how their approach laid the foundation for the success of CPMI. No other insurer worldwide has achieved such penetration when it comes to microinsurance. And that's why we always like to come back and learn from them," Opdebeeck said.

Formed in 2013, CARD Pioneer Microinsurance Inc. (CPMI) is a non-life insurance company created to address the calamity, agriculture, income loss, and other non-life insurance needs of the underserved market.

CPMI is a partnership between two trailblazing organizations: CARD Mutually Reinforcing Institutions (CARD MRI) and Pioneer Insurance.