THE number of Filipinos covered by microinsurance grew to 36.55 million for the first six months of the year, from 28.42 million reported in the same period for 2017, the Insurance Commission (IC) has reported.
Preliminary data based on the quarterly reports submitted to the IC showed that the number of individuals covered by microinsurance further grew as of the end of the first half of the year by 28.59 percent.
“As of end-June this year, the number of individuals covered by some form of microinsurance protection increased to 36.55 million, with the mutual benefit associations sector as the consistent front-runner in terms of number of lives covered and premium production,” said Insurance Commissioner Dennis B. Funa.
With 58.59 percent of market share in terms of number of individuals covered, the mutual benefit association (MBA) sector covered 21.45 million individuals as of end-June. This was a 24.12-percent increase from the 17.28 million members reported to be covered by microinsurance by MBA in the same period last year.
“We also saw a significant increase in the number of insured covered by the life insurance sector to 11.45 million lives covered as of end-June, up by 37.58 percent from 8.32 million during the same period last year.
The nonlife insurance sector likewise recorded a 29.31-percent increase in the number of individuals covered by microinsurance to 3.65 million from 2.82 million year-on-year,” Funa added.
The IC said an increase of 12.47 percent was reported in terms of premium productions and contributions from microinsurance amounting to P3.71 billion as of the first semester this year, from P3.30 billion in the same period last year.
Based on the sector’s performance report as of end-June 2018, the MBAs accounted for 59.30 percent of the total premium production amounting to P2.20 billion, followed by the life insurance sector with 29.51 percent or P1.10 billion, and the nonlife insurance sector with 11.19 percent totaling P415.30 million.
According to the IC, a total of 42 companies are actively engaged in providing microinsurance products in the country, composed of 22 MBAs, 11 life insurance companies and nine nonlife insurance companies.
“The consistent growth in the number of lives insured and premium production demonstrates the effectiveness of the microinsurance scheme in providing insurance solutions to everybody, especially to the low-income households,” he said.
Earlier, Philippine American Life and General Life and General Insurance Co. (Philam Life) and Allianz PNB Life Insurance Inc. both announced their respective plans in venturing into the microinsurance business.
“And we are pleased that more insurance companies are expressing their interest in developing new microinsurance products to help narrow the country’s protection gap,” he added.
Microinsurance products are affordable insurance products that aim to protect low-income earners from contingent events in exchange for premium payments.