Tuesday, February 16, 2010

Rural banks welcome microinsurance

(The Philippine Star) Updated February 16, 2010 12:00 AM

MANILA, Philippines - The Rural Bankers Association of the Philippines (RBAP) and the Microenterprises Access to Banking Services (MABS) program has expressed its support for initiatives to introduce microinsurance in the country.

Both have also started working with other groups in the insurance industry to support the National Strategy on Microinsurance formally launched last month. These include technical assistance and training for insurance providers in developing and enhancing the quality of microinsurance products and services in the country.

As part of this initiative, RBAP-MABS, USAID, MICRA/Philippines and Mercy Corps MAXIS also held a workshop last Feb. 1-3 at the Asian Institute of Management (AIM) in Makati City entitled “Developing Successful Microinsurance Products.”

RBAP president Joseph Omar Andaya said the event dovetails with the government’s efforts towards developing the Philippines as the microinsurance capital of Asia.

“It (the event) proved to be a fitting follow-through to the recent launching of the National Regulatory Framework and National Strategy for Microinsurance,” Andaya added.

RBAP has actively been advocating for member rural banks to eventually partner with private local insurance companies to provide needed insurance services for their microfinance clients.

Formulation of the strategy and its framework involved the Department of Finance, the Insurance Commission, the National Credit Council, other public and private stakeholders, as well as international agencies.

Aimed at enhancing insurers’ skills in product development, service delivery and marketing, the workshop was participated in by AA International, Country Bankers Life, CocoLife, Malayan Insurance, MicroEnsure Philippines, Philippine Prudential Life and Pioneer Life, mutual benefit associations or MBAs including TSPI, ASKI, RBTI and CARD.

Taking part in the event were representatives of GTZ-German Technical Cooperation, USAID, the Philippine Life Insurance Association (PLIA) and Coop Life Insurance and Mutual Benefit Services (CLIMBS).

The training workshop is considered as the first of its kind in the Philippines and was conducted by Michael McCord, senior microinsurance specialist and president of the Microinsurance Centre of USA. McCord has been conducting a series of meetings with the country’s insurance industry stakeholders in support of RBAP-MABS and MICRA’s efforts in expanding microinsurance services in the Philippines.

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