ORO INTEGRATED COOPERATIVE

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Where Financial Freedom begins!

INTEGRATED RISKMANAGEMENT SOLUTIONS

FLORIANO R. HILOTChief Executive Officer

OIC

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Background• Mindanao Philippines :

• Second largest island in the Philippines , all 3 organizations I’m working with are head quartered in Mindanao

• The Philippines experiences about 20 typhoons every year.• The devastating Sendong and Pablo typhoons in 2012 / 13 are still fresh in the minds of the residents• This year, this region has experienced several earthquakes as well

• Impact Insurance Partner :• CLIMBS General Insurance Cooperative provides the insurance to the members of the Co-ops. Mandatory

Insurance is bundled with credit and savings. Voluntary insurance is also offered through the cooperatives to its members

OIC

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• The first community-typed coop in the region since 1966• It started with P88.00 ($1.50) as start up capital • # 9 in terms of Assets from among the 25,000 registered coops in the

Philippines and # 5 in terms of Capital Adequacy.160,000+ members 18 branches AssetsP5.7Bn ( $114Mn)

• Services to members:

LOANS SAVINGS INSURANCE HEALTH CARE BILLS PAYMENT

OIC

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Product Development ObjectivesIncrease Long Term Savings Deposit for the Coop

Provide assistance to members in managing risks

Encourage members to use savings rather than taking loans for emergencies.

OIC

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How the project was started?

• Forged partnership between OIC and CLIMBS with the guidance of

International Labour Organization (ILO).

OIC

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Product Design Methodology

One on one interview with members including FGDs

Questions about risks faced, coping mechanism, saving and credit behavior

Interviews with staff

Brain storming product ideas

OIC

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Customer Insight (1)

RISKS FACED

COPING MECHANISM

Health Crop Failure Calamities

Most savings are used for loan repayment Save at Co-Op (Regular savings/ Share Capital) In crisis – prefer to take loan Very low awareness on products offered

Borrow from Co-Op Borrow from Relatives

SAVINGS

OIC

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Customer Insights (2)

FUTURE RISK

INSURANCE

Most members say that hospitalization expenses is a concern Most members also regard loss on account of

calamities – typhoons / floods as a concern

Most members have access to Phil Health

Mortuary insurance is provided as member benefit

Some members have HEALTH & WELLNESS PROGRAM – offered by CLIMBS – It is a hospitalization program that covers the whole family.

EXPECTATION 85% Interested in Education Savings Plan 90% customers would be interested in a saving

plan for “ health “ purpose

OIC’s SAFE PLUS – For the Co Op Kid!

11/4/2020

Long Term Savings and Systematic

Withdrawals

Bundled Insurance

Savings and Interest Rate

Purpose – Build College Fund

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• To save for and secure your child’s college costs

• Member - depositor , Nominee – child ( 0 -12 years age)

• Withdrawals after nominee starts college/ is 17

Free Life Insurance

On death of member during deposit period, accumulated balance gets doubled up to max. of P250,000

Deposit term : 17- Age of child/ 10 which ever is lower

Waiting period – Till child reaches 17/starts college

Withdrawals over 4 years in 2 installments per year

• Interest Rate @ 6%

• Min Saving – P6,000p.a ($120)

• Max Savings – P60,000 p.a($1200)

OIC’s Health & Disaster Savings

11/4/2020

Long Term Savings and Withdrawals

Bundled Insurance

Savings and Interest Rate

Purpose – Build Fund for an emergency

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• To save for an emergency

• Health and Calamities (Fire, Earth Quake, Typhoon, Volcanic Eruption, Floods)

• Free Calamity Insurance on accumulated balance reaching P5000

• 100% Property damage due to natural calamity – P6500 ($130)

• P500 Health ($10) Reimbursement due to peril

• Deposit term : Min 5 years• Withdrawals in case of

emergency only

• Interest Rate @ 5%• Min Saving –

6,000p.a($120)• Max Savings – 30,000 p.a

($600)

OIC

• Product was launched in first week of March 2020 , a week before the national lockdown

• Accounts Opened:• 30 Health and Disaster – Savings collected PHP 15,000 ($ 312.50)• 25 SAFE Plus – Savings collected PHP 12,000 ($ 250.00)

• Feedback:• Pandemic has delayed enrolment of product • Members were excited about the “bundled insurance”• Members would like a higher cover of insurance for Health and Disaster• Members wanted “ Fire” to be included in the perils covered.

• Latest Update• 420 Health and Disaster – Savings Collected PHP 430,000 ($8,958)• 380 SAFE Plus- Savings collected PHP 385,000 ($8,020)

• Interventions- Effective November 2020, all Staff and Officers are mandatory to be enrolled with the H&D deposit

Launch Results

OIC

• Member needs to be educated on the importance of long-term savings• Management should be persistent in pushing the product • There should be a CHAMPION from among the team members as an advocate of

savings consciousness and literacy.• Product awareness amongst members is a challenge• Staff motivation paralleled with incentive plan will countervene the “mañana

habit” (later only) of Filipinos• Introduced an incentive program for the first time

• In both products developed, we are trying to ensure that members use their savings for expected expenses vs taking a loan

• Oftentimes when product is bundled with insurance, the tendency is that member is not aware of the insurance component.

Key Learnings

OIC

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"Success is not final; failure is not fatal: It is the courage to continue that counts."

Winston Churchill

https://www.facebook.com/taranasaOIC

+63-0917-301-1217

renehilot.oic@gmail.com

https://orointegrated.coop/

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