PARTNER
                                 PROFILES




            CENTER FOR AGRICULTURE
            AND RURAL DEVELOPMENT
              INSURANCE (CARD) INC.
                                  Philippines

                                       GLOBAL INDEX
                        I N S U R A N C E FA C I L I T Y




FUNDED BY



                    G L O B A L I N D E X I N S U R A N C E FA C I L I T Y
                                                            PARTNER PROFILES

        Market started              Product in process of design - goal is to launch in 2015
        Clients                     Center for Agriculture and Rural Development (CARD) Inc., and CARD Pioneer Microinsurance Inc. (the Joint
                                    Venture between CARD and Pioneer Insurance).

        Partners                    Insurer: CARD Pioneer Microinsurance Inc. (Joint Venture between CARD and Pioneer Insurance)
                                    Delivery Channel: Center for Agriculture and Rural Development (CARD) Inc.

        Products                    Development and deployment of insurance (both index and indemnity) products to address typhoon related
                                    risks faced by both lenders and farmers
        Insured Perils              Mainly Typhoon

        Total Insurance Portfolio   Product in process of design

        Insurance Payouts           (N/A)

        Average Cost of Insurance   Product in process of design
        Development Impact          The project aims to assist the new Joint Venture (JV) insurance company formed by CARD and Pioneer
                                    Insurance (CARD Pioneer Microinsurance Inc.) in the development and deployment of insurance products
                                    to address typhoon-related risks faced by both lenders and farmers. It will also strengthen their technical
                                    and financial capability to administer the insurance products and help remove the constraints of credit
                                    expansion to farmers.

        Background                  The Philippines is highly dependent on the agribusiness sector, which provides employment for over one-third
                                    of its 40 million workforce. Despite its significance, the agri-sector continues to experience declining productivity
                                    and competitiveness. One of the factors impeding productivity is weak investment in the sector due to risks from
                                    natural calamities such as typhoons.
                                    The Philippines ranks as the 3rd most disaster prone country in the world, experiencing an average of 20
                                    typhoons a year – with Haiyan (local name Yolanda) being the most powerful of recent typhoons. Lack of
                                    appropriate risk management measures in the market has discouraged agricultural investment, further hindering
                                    economic growth. Poverty levels among farmers are three times higher compared with those in other sectors.
                                    Many lenders are unwilling to extend much needed credit to this sector without risk mitigating measures.

        Project Description         The objectives are to create an index-based portfolio insurance product (to insure the agri-loan portfolio of
                                    CARD Inc.), and provide advisory services for an indemnity insurance product (insuring losses suffered by
                                    CARD agri-borrowers) – as well as build their capacity to administer the insurance products. The project will
                                    also provide advice/trainings for the effective management and administration of the products within CARD’s
                                    agri-lending operations.

        Success Factors             N/A, product in process of design

        Challenges                  The project will explore incorporating both wind speed and rainfall in product design to better address basis risk.
        Opportunities               CARD is the largest micro-finance institution in the country, with 1.8 million clients. The project will contribute to
                                    CARD's efforts to increase lending to farmers via an improvement in the risk profile of agricultural borrowers.

        Contacts                    Conrad de Jesus, Operations Officer, CDeJesus1@ifc.org
                                    IFC Manila




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