SOME 23 million low-income Filipinos representing more or less 25 percent of the population own a microinsurance policy, making the Philippines the country with the deepest microinsurance cover in the world, according to the Insurance Commission.
“We had meetings internationally. They are amazed at how we increased penetration in the low segment of society,” Insurance Commissioner Emmanuel Dooc said.
He also said in early 2000, the Philippines had only one mutual benefit association (MBA) providing microinsurance. At the moment, the number has increased to 18 microinsurance MBAs.
He likewise said the number of commercial insurers offering microinsurance products has risen to 31 from only three in 2004.
He cited the likes of Malayan and Pioneer Insurance now offering microinsurance products. “The public-private partnership program seems to be working. We already have the framework, but what’s lacking is the program on financial literacy. People must understand that there are products that give them protection in times of need,” he said.
He said the key driver for increasing microinsurance penetration is awareness and a distribution channel. To ensure widespread financial literacy, the people need understand that what is being offered to them is for their own interest, that when calamity comes, they can get something from the insurance company, Dooc said.
Cebuana Lhuillier Insurance Solutions General Manager Jonathan Batangan said, after the Philippines, the country with the highest microinsurance penetration is Thailand, then Indonesia and finally India.
In the Philippines a typical microinsurance policy costing P75 a year as premium extends financial benefits totaling P20,000.