As early as 2006, with the pioneering efforts of CARD MBA, micro-insurance started to be recognized by the Philippine insurance regulator. In fact, the Insurance Commission issued guidelines on micro-insurance thereafter.

Then a series of consultative forums were sponsored where what surfaced was that there were informal insurance-like operations performed by many associations and cooperatives. It resulted to a possible issuance of a joint circular by CDA, IC and SEC for associations and cooperatives to legalize their insurance-like operations.


In year 2007, the National Confederation of Cooperatives (NATCCO) embarked on a program to assist its cooperatives to expand their membership through branching. The Micro-Finance Innovations in Cooperatives (MICOOP) program was launched, where NATCCO opened branches for cooperatives, operate these branches for three (3) to five (5) years, and then turn over these cooperatives to mother-coops.

In the branches, MICOOP introduced the Damayan System where borrowers of the MICOOP-operated branches contribute certain amount so that the beneficiaries of the borrowers receive a certain benefit-amount when the borrowers die within the term of the loan. This is an informal insurance-like operation which is expected to be scored by CDA being one of the expected signatory to the expected joint circular to be issued. The joint CDA,SEC, IC was issued in January 2010.


In 2009, NATCCO commissioned a group to establish the NATCCO MBA, Inc. in anticipation to the issuance of the joint circular by CDA, I.C. and SEC.

On April 24, 2009, NATCCO MBA, Inc. was registered with the Securities and Exchange Commission.

The process of getting the license as a mutual benefit association is long, tedious and very technically difficult because the Insurance Commission wanted to ensure that the operation of an MBA is sustainable for the benefit of its members, Aside from complying with the law on the MBA the I.C. wanted it to comply with their regulation which are proven to make the MBA operationally sustainable.The first license to operate as an MBA was issued by IC to NATCCO MBA, Inc. on October 15, 2009.


By operations of law, 50% of members basic contribution is credited to members equity. In the review and evaluation of such legal requirement, it was agreed to seek the approval of I.C. for the amendment of our product. The reason is that the field of membership of NATCCO MBAI are those who are cooperative members whose cooperatives are affiliated with NATCCO. As such, these members already contribute regularly to the share capital of their cooperatives.

It was proposed to I.C. to make a basic contribution plus an optional coverage, up to the limits of the micro-insurance. It was unitized in that the one-unit basic coverage is P10,000.00 and every additional unit up to micro-insurance limit is P10,000.00 per unit. The optional cover distinguishes the age of members upon admission to membership. The younger the age of the member upon admission, the smaller is his/her monthly contribution per unit of coverage.


Any MBA to be successful has to have a micro-finance partner. MICOOP of NATCCO is the micro-finance partner of NATCCO MBAI, where the collection of the contributions is done by them. This allows the frugal computation of contributions by the Actuary, as it was communicated that as cooperative members, they are economic units or with regular income and in relatively good health.

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