ASKI MBA: Pursuing a triple-bottom line


FROM THE MARGINS

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I recently had a chance to touch base with Emeteria Quijano, the general manager of the ASKI Mutual Benefit Association.  ASKI MBA is a founding member of the  microinsurance resource center Risk Management Solutions, Inc. (RIMANSI), which later became the Microinsurance MBAs Association of the Philippines (Mi-MAP).  ASKI MBA is the microinsurance arm of Alalay para sa Kaunlaran, Inc. (ASKI), a microfinance-oriented network of organizations that operate in 38 provinces in Regions I, II, and III.  


I was very happy to hear about ASKI MBA’s growing outreach.  It has come a long way from the time it was registered with the Securities and Exchange Commission (SEC) and received its microinsurance MBA license from the Insurance Commission (IC) in 2006.  


“From May 2007 to December 2023, we have paid a total of 5,642 claims worth ₱275.75 million,” says Emie.  


Data from their website show that as of December 2023, their membership has grown to 235,957 and they have insured 943,828 lives. From January to December 2023, they paid 512 claims totaling ₱28.33 million.  They have a guarantee fund of ₱53.5 million and operating expense ratio of 30.07 percent. 


This is impressive, but I am not surprised. Emie has been at the helm of ASKI MBA for nine years, since October 2014.  Her Commerce degree (major in Accounting) from the Wesleyan University prepared her for this role, as well as being the former Finance, Accounting and Administrative Director of ASKI Microfinance. She had specialized training in financial management, microfinance management, risk management and advance management from local and international institutions. In fact, Emie served as the President of MiMAP’s Board of Directors from 2020-2022.

 

Triple-bottom line

ASKI’s mission is to “assure the security of members by providing affordable comprehensive microinsurance.” The focus on affordability and comprehensiveness guides its provision of support to members in the form of death benefits, medical subsidy, pension and loan redemption assistance.  


Emie shares: “We pursue a triple-bottom line, that is, outreach, viability and (social) transformation.”  


ASKI hopes to increase its clients by focusing on poor communities that are unreached or underserved by other financial institutions.  Through the MBA, ASKI is able to provide cover to its clients, their spouses and dependent children. Microinsurance, indeed, is helping them increase their outreach.


To ensure viability, ASKI MBA offers products and services designed to meet their clients’ needs based on a survey and an actuarial study. By strictly following government regulations, especially on the required guaranty fund, the benefits to members are assured.   


To promote empowerment and transformation, ASKI MBA gives every client a chance to become an MBA coordinator or to be a member of their Board of Trustees (BOT). In fact, five out of the seven BOT members are clients/MBA members. To help them effectively perform their functions, they were given training on microinsurance, anti-money laundering, governance and leadership, among others.

 

Products and services

ASKI MBA offers two microinsurance products: “Alalay sa Pamilya” (ASaP) Plan, the basic life insurance benefit given to members, and a credit life insurance plan called “Alalay sa Kabuhayan Plan” (AKaP). 


ASap is offered to active members of ASKI and other organized groups in their area of operations. For a one-time membership fee of P300 and a ₱30 weekly contribution, the plan provides life insurance benefits worth ₱120,000 (for member), his/her spouse (₱20,000) and dependent children (₱10,000).   


AKaP insures the microfinance debt of members, with an annual premium of ₱20 for every ₱1,000 loan.  A maximum of ₱150,000 loan may be insured per year, protecting both the MFI and the members’ families in case of untimely death.

 

Awards and Recognition

ASKI MBA was one of the Top five Micro-insurers rated in accordance with the Insurance Commission’s Enhanced Performance Indicators and Standards for Microinsurance (SEGURO) framework in 2019.


Emie shares: “In the recent ASKI MBA Satisfaction Survey Report conducted by our Research and Development Unit last September 2023, we had a Net Promoter Score (NPS) of 73 percent, wherein the global benchmark for a good NPS is above 50 percent. Clients as promoters drive growth by buying more, staying longer, referring friends, and providing feedback and ideas.”


She is also proud that ASKI MBA, as part of the ASKI Group of Companies, has been certified as a “Healthy Place to Work Institution” by a Dublin-based human resource organization.  “We are very proud to share this historic achievement since we are the first organization in Asia to be certified as such by Healthy Place to Work®. ASKI’s total score is 81 percent, and the global benchmark is only 70 percent,” says Emie.


By ensuring the active participation of the members in the management of the organization, ASKI MBA will continue to grow. They prove that the business model of Mi-MBAs not just protects, but also enables and empowers the poor. What Emie said resonates: “Transformation is evident in allowing the members – the clients themselves – to own and manage the MBA.”

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI).)