Gonzales Suggests the Creation of a Trust Fund: Calamity Insurance
CLIMBS Life and General Insurance Cooperative (CLIMBS) President and CEO Fermin L. Gonzales has urged member-investors of CLIMBS to support measures designed to give security to their individual members especially during calamities.
Gonzales made his call during CLIMBS 42nd General Assembly in Cebu City on April 25 and 26, 2014.
He suggested that cooperatives should give their members the Mandatory Calamity Insurance coverage. Under this concept, Gonzales explained that bundled products may be put in place for the benefit of the coop members.
CDA Chair Challenges Coops to Face and Address Risks to Grow
Cooperative Development Authority (CDA) Chairperson Emmanuel Santiaguel has stressed the need for cooperatives to face and address the risk for them to grow.
In his speech during the fellowship night of CLIMBS General Assembly on April 25, 2014 in Cebu City,
Santiaguel likened the experience of the coop sector in the Philippines to the exclusive growth of the Philippine economy that appears to benefit only the rich.
He said that despite the claim of the national government of a robust economic growth in the Philippines the poor continues to wallow in poverty and is not even aware of the booming economy. Similarly, he said “we have been suffering from a big gap between the rich and the poor coops.”
Cooperative Development Authority (CDA) Chairperson Emmanuel Santiaguel has expressed optimism that CLIMBS Life and General Insurance Cooperative (CLIMBS) can greatly contribute to the growth and development of the coop sector in the country.
Speaking during the cooperators’ and fellowship night of CLIMBS on April 25, 2014, the day before its 42nd General Assembly, at the Casino Espaňol, Cebu City Santiaguel said that the presence of CLIMBS sparks encouragement and enthusiasm among cooperatives.
“The full trust and confidence to the existence of a strong cooperative insurance which will cushion the blow from any indication of financial crisis or difficulty helps develop the backbone of any cooperative. The feeling of security gives even the doubter the courage to walk the extra mile,” Santiaguel said.
The historic joint venture between CLIMBS Life and General Insurance Cooperative and Nepalese cooperatives is now inching closely to its realization. In fact, the launching of the insurance cooperative partnership is slated towards the middle of July this year according to CLIMBS President and CEO Fermin L. Gonzales.
Gonzales said that CLIMBS and its partners in Nepal have already approved the business plan of the partnership which was deliberated on by both parties from May 20 to 25, 2014 in Nepal. CLIMBS he said is now in the thick of complying with the requirements set by the Nepalese government such as a position paper and other related documents.
CLIMBS partners in this venture are the National Cooperative Federation of Nepal (NCF/N), Nepal Agricultural Central Cooperative Federation Ltd. (NACCFL), and Nepal Federation of Savings and Credit Cooperative Unions Ltd. (NEFSCUN). Gonzales said the insurance and cooperative departments in Nepal are very supportive of the undertaking.
The Climbs Life and General Insurance Cooperative (CLIMBS) is now studying the proposal of the Cooperative Insurance System of the Philippines (CISP) for a merger.
During CLIMBS 42nd General Assembly in Cebu City on April 26, 2014, the assembly gave its imprimatur to entertain the idea proposed by CISP. With the go signal from the Board of Directors, CLIMBS President and CEO Fermin L. Gonzales suggested that a committee be organized to scrutinize the proposal.
CLIMBS Board of Director and Vice-Chairperson MGen Gilbert S. Llanto (Ret) chairs the Merger Committee.
CLIMBS Venture in Nepal gets Headway to Realization
As you probably knew, CLIMBS will soon operate in Nepal. And the realization of this milestone is getting nearer every day. In fact, the launching of this partnership is expected to be held this month in Nepal, following our successful deliberation of the business plan on the last week of May 2014 in that country with our Nepalese counterparts.
Barring any serious hitches, we are looking forward to start operating within the first quarter of 2015. As I have said earlier, CLIMBS will have a 49% share of the capitalization. We are talking about a Php 60 to Php 65 million pesos in terms of investment. However, CLIMBS will open the opportunity for our member coops to invest. I was thinking that ten coops may put up Php 5 million each with CLIMBS taking care of the rest.
In this light, we will have a business forum come August this year.
As pointed out earlier the venture will be managed by CLIMBS for seven years. I already have in mind who will be sent to manage the business, but I will keep their identities anonymous in the meantime, pending the finalization of the decision on the matter at hand.
Stressing that CLIMBS entry to the international insurance business is a rare opportunity and a unique feat: clearly a sign of success. As pointed out by its President and CEO Fermin L. Gonzales, CLIMBS will enter into a partnership with cooperatives in Nepal with the support of the Nepalese government.
CLIMBS member-investors, during their general assembly on April 25-26, 2014 in Cebu City gave their imprimatur to the venture, that’s why CLIMBS management is now full swing into the ball-game.
According to Gonzales, the launching of the partnership is expected to take place this July and will start operating within the first quarter of 2015. Although, it is premature to celebrate, it cannot be denied that such development is really amazing and historic at the same time. It is the first time that an insurance cooperative from the Philippines will do business in another country. This is indeed trailblazing, awe-inspiring and a source of pride. In fact, that CLIMBS business model will be used in this undertaking.
The Official Website of CLIMBS Life and General Insurance Cooperative
CLIMBS Compound, Upper Zone 5, National Highway, Brgy.Bulua
Cagayan de Oro City, Philippines 9000
Tel: +63.8822.738738, +63.088.8561355