DoF, IC to launch micro-insurance drive

Manila Bulletin
By CHINO S. LEYCO
January 29, 2011, 5:20pm

MANILA, Philippines — The Department of Finance (DoF) and the Insurance Commission (IC) announced that they will launch a massive campaign to promote microinsurance awareness in the country, starting with a team-up with the local government of Quezon City.

In a statement, the finance department and the IC said the alliance with the Quezon City government will start on January 31 through the launch of the “Roadmap to Financial Literacy on Microinsurance.”

The collaboration between the national government and local government units (LGUs) is seen to promote and provide risk protection to the country’s low income earners.

Microinsurance was introduced in the country to supplement the poverty alleviation program of the government.

Since poor households are most vulnerable to risks associated with uncertain losses such as death, illness or injury, accidents, and natural and man-made calamities, there is a vital need to provide the low-income sector with access to affordable financial protection in case of such contingencies.

In 2010, the government through the DoF-National Credit Council and in collaboration with other government agencies and the private sector launched the twin pillars of microinsurance development – the “National Strategy for Microinsurance” and the “Regulatory Framework for Microinsurance.”

The “National Strategy for Microinsurance” defines the vision, objectives, roles of the various stakeholders, and key strategies to be pursued in enhancing access of the low-income sector to insurance products and services.

The “Regulatory Framework for Microinsurance,” on the other hand, establishes the policy and regulatory environment to encourage, enhance, and facilitate the safe and sound provision of microinsurance products and services by the private sector.

The event is the culmination of the observance of the Microinsurance Month. Under Presidential Proclamation 1212 signed in January 10, 2007, January is declared as Microinsurance Month and appointed the IC and the DoF as the lead agencies.