In preparation for the full implementation of the National Strategy and the Regulatory Framework for Microinsurance which will be launched on January 29, 2010, the Department of Finance (DOF) and the Insurance Commission (IC) held the 1st meeting of a technical working group (TWG) that will formulate a microinsurance industry performance standards. The organizational meeting was held at the IC on January 19, 2010.
The set of performance standards will help the general public, the Management of microinsurance providers and the regulator in assessing various aspects of operations of microinsurance activities. Particular focus will be on efficiency and effectivenes in the delivery of microinsurance by insurance providers. With the performance standards in place, low income and informal clients of microinsurance providers will be provided transparent information and be protected from unsafe and unsound microinsurance practices.
As agreed during the meeting, the performance standards will bear the acronym "SEGURO" which in Pilipino literally translates to "Insurance". SEGURO stands for S-Solvency and Stability; E-Efficiency; G-Governance; U-Understanding the Product; R-Risk Managment; and O-Outreach.
Aside from the DOF and the IC, the TWG is comprised of private sector representatives from the Actuarial Society of the Philippines (ASP), Chamber of Mutual Benfit Associations Inc.(CHAMBAI), Cooperative Insurance Systems of the Philippines (CISP), Coop Life and Mutual Benefit Services (CLIMBS),Insurance Accountants of the Philippines (IAP), Microfinance Council of the Philippines (MCPI), Philippine Insurers and Reinsurers Association (PIRA), Philippine Life Insurance Association (PLIA) and the Risk Management Solutions, Inc. (RIMANSI).
The development of the microinsurance performance standards is being supported by the Asian Development Bank-Japan Fund for Poverty Reduction under a technical assistance grant "Developing Microinsurance Project"
The next meeting of the TWG will be held on February 3-5, 2010 at Tagaytay City, Philippines.
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