Each month, the lender adds the month's interest to the outstanding balance and then subtracts the payment received.
In this case, the lender adds an extra charge, still proportional to the outstanding balance, before crediting the payment.
So, the effect of the insurance is the equivalent of increasing the monthly rate by 0.038 percentage point.
So, if the monthly rate is 0.25%, a new rate of 0.25+0.038, or 0.288% should be used to find the regular payment, principal in any payment, "interest + insurance" in any payment, and to find the balance owing after each payment.
In the "interest + insurance" amount, 0.038/0.288 of it is insurance, the rest is true interest...