Filipino insurance specialists conduct “Microinsurance Industry in the Philippines workshop” in Bangkok


By: Julie Simon Mac

Bangkok, Thailand – Shayne Rose Bulos, Supervising Insurance Specialist of the Insurance Commission of the Philippines and Dante Portula, Senior Adviser of the Gesellschaft für Internationale Zusammenarbeit (GIZ), presented the case study entitled “THE PHILIPPINE APPROACH TO INCLUSIVE INSURANCE (MICROINSURANCE) MARKET DEVELOPMENT” and conducted a workshop with participants from different countries, such as Cambodia, Laos, Maldives, Mongolia, Nepal, Papua New Guinea, Pakistan, Sri Lanka, Thailand, and United Arab of Emirates. The session was part of the one-week INCLUSIVE INSURANCE TRAINING PROGRAM FOR SUPERVISORS IN ASIA on 14th to 18th of March 2016 at Centara Grand Ladprao Bangkok Hotel & Convention Centre and was organized by the Toronto Centre, A2ii, AITRI, GIZ RFPI and Office of the Insurance Commissioner of Thailand.

The Philippines Microinsurance Industry is considered as one of the best in the world. Its insurance coverage reaches 31 Million in 2014 from 19.9M in 2012 to 23.7M in 2013.

So what is Microinsurance and why is Philippines’ landscape considered as one of the best in the world?

Microinsurance defined by the Insurance Code as an insurance product responsive to priority needs for risk protection; easy to understand; and affordable. It is appropriate for low-income market in terms of cost, payment terms, coverage, and delivery mechanisms

Some of the differences between Microinsurance and traditional insurance products are shown below:

Common Provisions for Insurance Plans
Traditional Insurance Products
Microinsurance Products
Ø   Maximum   Premium
No Limitation
7.5% of the current daily minimum wage rate in Metro Manila
Ø   Maximum Benefit
No Limitation
1,000 times the daily minimum wage rate in Metro Manila
Ø   Policy Contract
Full of complex conditions
Simple and easy to understand
Ø   Frequency of Premium Collection
Monthly, Quarterly, Semi-Annual, Annual
Daily, Weekly, Monthly, Quarterly, Semi-Annual, Annual
Microinsurance products are offered by Commercial Insurance Companies, Cooperative Insurance Societies, and Mutual Benefit Associations (MBAs) and distributed through a variety of channels such as rural banks, microfinance NGOs, cooperatives, pawnshops, and convenience stores.

The purpose of Microinsurance is to ensure that every Filipino, even those who are considered living below the poverty line, can afford insurance that enables an individual or a family to be resilient once a disaster strikes.

The session/workshop conducted by Ms. Bulos and Mr. Portula focused on the three (3) regimes that the Microinsurance Industry in the Philippines have gone through during the past ten (10) years. Because the assertive stance of the Philippine government and with genuine dialogue with the insurance industry, the regulations established were able to increase the coverage in heaps and bounds.
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