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OFW Family Savers and Wellness Club -- Pioneer Life

About the Project

 
Project Name: OFW Family Savers and Wellness Club -- Pioneer Life
Type of Facility Project: Microinsurance innovation grantee
Country of Operation: Philippines
Region: Asia and the Pacific
Sub Topics: Other channels, Sales, Promotion, Demand, Savings-linked, Life
Type of Risk Carrier: Regulated insurance company
Type of Distribution Channel: Faith-based organizations
 

Organizational Overview

Pioneer Life Inc. is a leading life insurance company in the Philippines. A member of the Pioneer Group, which has been in operation for more than fifty years, Pioneer Life´s core business is to provide its clients with suitable financial options to secure what matters most to them. Pioneer makes itself relevant to its customers by identifying their particular needs and providing products/services and distribution channels suited to their unique requirements.

 

Project Description

This project combines financial and risk management education with a product that bundles savings with life and accident microinsurance.  The programme and products are offered through savers and wellness clubs set up in schools and churches.  The project aims to be unintimidating by providing built-in savings in “bite-sized” amounts, alongside insurance cover. This is combined with education on savings and insurance to create awareness of their benefits and promote a culture of in...READ MORE
 

Beneficiaries

The project targets families of migrant workers – children and adult dependents – who are part of a migrants´ association at churches and schools in selected provinces within Luzon and Metro Manila. Through financial literacy sessions, the project shall educate 250,000 migrant families, with an average monthly income of $350 and provide access to microinsurance and savings products.

 

Learning Agenda

  • Among the proposed program benefits, what is the most appealing feature that convinces customers to join the Clubs?
  • What is the impact of financial literacy training on the behaviour/attitude of the target beneficiaries towards insurance and savings?
  • How efficient is the church as a delivery channel to reach the target group?
  • How valuable is the insurance benefit? Which feature of the microinsurance product is the most important to policyholders?
  • How valuable is the benefit of the savings product to the target group? What drives them to save more?

Project Status

Key Performance Indicators

 

June 2010

December 2010

December 2011

Number of Active Policies

1095

1414

4836

Number of Top-ups

74

Not available

Not available

Number of Claims

2

5

10

Number of Claims Rejected

0

0

0

 
 
Project Updates
As of December 2009 The signing of the memorandum of understanding (MOU) between Pioneer and the dioceses was the first critical step as it signified the official partnership between the dioceses and Pioneer.  It allowed Pioneer to conduct grand launches and mini-launches of the savers and wellness clubs as well as to administer financial literacy seminars in the diocesan schools and parishes. Grand launches were conducted in five out of the 11 targeted dioceses during the months of J...READ MORE

Project Lessons

On the viability of the church as a distribution channel Getting the distribution channel right is much more important yet much more challenging than product design and marketing. If a functional distribution channel is found, suitable product designs will follow because the channel knows its clients.  Client education and marketing will also follow because clients want to listen to and buy from those they trust. Partnership with the church, especial...READ MORE
 
 
On the human resources needed for distribution The distribution channel must commit sufficient human resources to support the dissemination of information and the receipt of requests in order to complement the insurer’s efforts. Pioneer found that insurance, in whatever form, and whether endorsed by a reputable institution like the church, or not, still needs an intermediary to bridge the gap between the risk carrier and the market. Educating the market on...READ MORE
 
 
On targeting client characteristics and preferences Families of overseas Filipino workers seem to be more inclined to purchase products with short or medium term returns. This conclusion was reached from the results of the surveys conducted by Pioneer during its product launches in six dioceses. Savings for education and emergencies are still more popular than those for retirement. Inability to pay is often the reason given by attendees for not joini...READ MORE
 
 
On marketing The sudden growth of club membership can be attributed to the sustained promotional activities conducted by Pioneer. These included raffles during the months of February and March, and livelihood fairs during the months of July and August 2010.Requiring parents to attend the orientations conducted in schools also contributed to the increase in membership, particularly among adults. Incentives and bonuses are critical to encourage migrant desk...READ MORE
 
 
On the use of technology Club members still preferred traditional transactions (paying over the counter) as opposed to mobile money in the form of G-cash or Globe cash payment systems. The use of G-cash as an alternative to banks was met with some hesitation. Clients are not comfortable parting with their money to an electronic or online machine rather than to a human teller or cashier.  ...READ MORE
 
 
Date of last update:  December 2012