Road show aims to increase awareness of microinsurance

Business World
Finance
Posted on September 19, 2011 04:24:17

TACLOBAN CITY -- The government yesterday kicked off a road show aimed at increasing awareness of microinsurance and risk protection.

Joselito S. Almario, deputy executive director of the Department of Finance-National Credit Council (DOF-NCC), said financial literacy seminars will be held in 15 other regions after Eastern Visayas.

Through this road show, he said the government is hopeful microinsurance would reach the poor communities.

“It has been an impression that insurance is only for those who are in the higher class. We are promoting microinsurance because this is intended for the low-income families. Premium on this product can be as low as P30 a month,” Mr. Almario told BusinessWorld at the sidelines of the seminar here yesterday.

Only 13% of the country’s population has life insurance while only 1% is covered by non-life insurance, he noted.

Since the government introduced microinsurance last year, however, he said commercial insurance companies have gained some two million clients.

After the financial literacy seminars, Mr. Almario said the government aimed to form a corps of microinsurance advocates from government, insurance companies, civil society, support organizations, and donors.

“These future microinsurance advocates are envisioned to help address two causes of low insurance coverage among the low-income sector -- the lack of awareness of insurance and low financial literacy level,” he said.

The road show is being held by the Insurance Commission with assistance from the DOF-NCC, German International Cooperation-Microinsurance Innovations Program for Social Security (GIZ-MIPSS) and Asian Development Bank-Japan Fund for Poverty Reduction (ADB-JFPR).

GIZ-MIPSS senior finance adviser Dante O. Portula said in a separate interview the international agency has been assisting the government under a four-year program that will expire in 2012.

“We have to popularize microinsurance. Disasters such as illnesses, injuries, or even death of family members, loss of property or natural catastrophes could happen to anybody -- but low-income families have to cope even harder with these risks because the effect on their limited financial possibilities could be fatal,” Mr. Portula said.

He said GIZ has been assisting the government capacitate insurance providers. -- Sarwell Q. Meniano