Wednesday, January 6, 2010

Microinsurance Strategy and Framework Launching - January 29, 2010

The Department of Finance and the Insurance Commission will formally launch the National Strategy and the Regulatory Framework for Microinsurance on January 29, 2010 at the Philippine International Convention Center with the following theme: “ Magpaseguro Para Protektado”.

The milestone documents outline the government’s policy thrusts and directions in providing the poor access to insurance products and services. It will create public awareness on the importance of providing appropriate risk protection for the poor through microinsurance and will enjoin the private sector ‘s participation in the delivery of simple and affordable insurance products for the low income and informal sectors of society.

The National Strategy for Microinsurance defines the objective, the roles of the various stakeholders and the key strategies to be pursued in enhancing access to insurance of the poor. It also discusses health insurance for the poor in the context of social protection. Strategies to encourage complementation of the products of PhilHealth by the private sector are also discussed. It also provides directions towards mainstreaming informal insurance and insurance-like activities and the promotion of public awareness and financial literacy.

The Regulatory Framework for Microinsurance, on the other hand, establishes the policy and regulatory environment that will encourage, enhance and facilitate the safe and sound provision of microinsurance products and services by the private sector. It also identifies and promotes a system that will protect the rights and privileges of those who are insured and ultimately enhance trust and confidence on the insurance industry and other providers of insurance-like and other similar products and services.

The National Strategy and Regulatory Framework were crafted by technical working groups formed by the DOF and have undergone a series of regional consultations nationwide in 2009. It was approved by members of a Steering Committee comprised of representatives from the DOF, Insurance Commission, Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, National Anti-Poverty Commission and PhilHealth in a meeting held on December 11, 2009.

The event is the culmination of the observance of the Microinsurance Month. Under Presidential Proclamation 1212, January is declared as Microinsurance Month and appointed the Insurance Commission IC and the DOF as the lead agencies. It enjoins all in the government to "initiate and participate" in various activities.

Delivering the keynote address will be Finance Secretary Margarito Teves. Expected to attend the launching will be, among others, members of the international community, bilateral and multilateral institutions, insurance providers, microfinance institutions (rural banks, cooperatives and non-government organizations), basic sector representatives, government agencies, financial institutions and other major stakeholders.

In support of the government initiative, the Asian Development Bank (ADB) and the German Technical Cooperation (GTZ) are providing technical assistance to the DOF for the development of the microinsurance market in the Philippines. The assistance focus on the establishment of the appropriate policy and regulatory environment; building capacities of both regulators and providers in regulating and providing microinsurance services; product development and financial literacy for both providers and clients of microinsurance.

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