Saturday, June 30, 2012

Pioneer Group trailblazes in microinsurance

Manila Times
Raffy Ayeng
Friday, June 29, 2012




LIFE insurer Pioneer Group on Thursday reported growth of 300 percent in its micro-insurance program from 2010 to 2011, or from 160,000 enrollees two years ago to close to 500,000 at the end of 2011.

Pioneer Life President and Chief Executive Officer Lorenzo Chan Jr. attributed this progress to the company’s willingness to foresee and respond to market demands, and its expertise in life and non-life insurance, which allows customization of coverage packages. 

“The micro-insurance market is simple yet comes with its own set of requirements. The situation is such that we must simplify forms and processes and ensure ease of claims filing. We took up that challenge,” he said.

For micro-insurance, Pioneer continues to simplify its forms, the application process requires no exams, and claims are settled within an average of five days from notice of loss. The fast processing of claims is particularly significant to the members of this market, whose need for funds to get back on their feet after death, disability or disaster is immediate. 

Pioneer vice president for micro-insurance Geric Laude also mentioned strong government support for microinsurance as a factor for growth. 

“As more people become aware of microinsurance and as more programs and products are created, we see a further increase in demand. Pioneer is preparing itself for this inevitability,” he said

“In the next three to five years, we expect to at least mimic the growth trajectory that we’ve had,” Chan said, reiterating the company’s commitment to the microinsurance market. 

“Back in 2008, when we began retailing affordable insurance products with easy-to-understand forms, we were one of the few who believed that microinsurance was worth going into,” he said.

“Today, as we see our coverages enabling more and more claimants to get back on their feet after a tragedy, we’re encouraged to continue making insurance available and affordable to the market that needs it most,” he added.

Friday, June 29, 2012

1-Million Enrollees Pioneer Posts Big Microinsurance Gains


By CHINO S. LEYCO
June 28, 2012, 5:54pm
Manila Bulletin
Insurance-firm Pioneer Life Inc. said yesterday that it expects enrollees to its microinsurance program to reach a record one million this year after the number grew by threefold from 2010 to 2011.
In a briefing, Lorenzo O. Chan, Pioneer Life President and Chief Executive, said that they see a further increase in demand for microinsurance this year as more people, especially the masses, become more aware of the company's products and program.
Geric G. Laude, Pioneer Life vicepresident for microinsurance also said that the strong government support for microinsurance is a factor for growth along with the industry's strong market potential.
“In the next three to five years, we
 expect to at least mimic the growth trajectory that we've had,” Laude said.
In 2010, the Bangko Sentral ng Pilipinas (BSP) allowed rural banks, cooperative banks and thrift banks to market microinsurance products through a partnership with a licensed insurance company.
The Department of Finance (DoF) is also going around the country for its Financial Literacy Roadshow and Advocacy Seminar on Microinsurance.
Based on the primer from the DoF, the amount of premium or contribution per micro-insurance policy can range typically from less than P1 up to P20 per day. This means that the premium on a micro-insurance product can be as low as P30 per month.
“The mircoinsurance market is simple yet comes with its own set of requirements. The situation is such that we must simplify forms and processes and ensure ease of claims filing. We took the challenge,” Chan said.
Microinsurance offers coverage for people with low income with products such as life insurance, and is branching into areas such as offering farmers insurance polices against extreme weather.
For this program, Chan said Pioneer continues to simplify its forms, the application process requires no exams, and claims are settled within an average of five days from notice of loss.
“The fast processing of claims is particularly significant to the members of this market, whose need for funds to get back on their feet after death, disability or disaster is immediate,” Chan said.
Despite the challenges in microinsurance, Chan said that the company is committed to the market, citing that back in 2008, “we were one of the few who believed that macroinsurance was worth going into.”
“Today, as we see our coverages enabling more and more claimants to get back to their feet after a tragedy, we're encouraged to continue making insurance available and affordable to the market that needs it most,” Chan said.

Pioneer plans to sell cheap insurance to 1M Filipinos



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THE Pioneer Group of Insurance Companies looks to sell P100 million worth of microinsurance policies this year to more or less one million Filipinos who can afford P19 a month as premium payment.
The Pioneer Group, which is both into life and non-life insurance, also reported having sold microinsurance policies to half a million Filipinos at end-2011 or 300 percent more than in 2010 when those who took microinsurance policies numbered only 160,000.
This was learned on Thursday from Pioneer Life President and Chief Executive Officer Lorenzo Chan who told a press conference the group’s target premium sales this year was basically in keeping with expectations.
“We’re on track,” Chan said of Pioneer’s premium sales performance without disclosing the actual number although he cited last year’s premium income of P1.43 billion.
“The microinsurance market is simple yet it comes with its own set of requirements. The situation is such that we must simplify forms and processes and ensure ease of claims filing.” We took up that challenge,” Chan said.
According to him, claims are typically settled within five days from notice of loss.
Chan expressed optimism for still greater demand for microinsurance cover as more Filipinos become more aware of its existence.
“In the next three to five years we expect to at least mimic the growth trajectory we’ve had,” he said.
Pioneer first began selling affordable insurance products with easy-to-understand forms in 2008 when few believed that microinsurance was worth engaging in for profit.
“Today, as we see our coverages enabling more and more claimants to get back on their feet after a tragedy, we’re encouraged to continue making insurance available and affordable to the market that needs it most,” Chan said.
Pioneer’s life insurance products generated gross written premiums of around P1.2 billion last year on the back of assets worth P5 billion and equity of over P800 million.
Its non-life business generated gross premiums written of some P3.8 billion, backed by equity of some P7 billion and assets of another P12 billion.

Monday, June 25, 2012

Microinsurance is for the poor says DOF

CLARK FREEPORT ZONE, Pampanga, June 23 (PIA) -- Microinsurance is intended for the poor where we provide access to financial services to the majority of the poor households and microenterprises.
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Farmers, minimum wage earners urged to avail microinsurance

CITY OF SAN FERNANDO, Pampanga, June 25 (PIA) -- Farmers and other low-income sectors are urged to reconsider microinsurance as a safety net for their lives and livelihood as the typhoon season starts. 
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Microinsurance, a way to safeguard life - DOF USec

CLARK FREEPORT ZONE, Pampanga, June 23 (PIA) -- “Microinsurance is a way to safeguard one’s life. If they’ve been hit by a calamity, there is a benefit they could get from this.” 
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Sunday, June 17, 2012

The Philippines: Raising capital in insurance


A recent announcement that plans to raise the capital requirement for insurance companies could be delayed beyond 2016 could give local and international insurers more time to focus on growth areas such as microinsurance and bancassurance

The Microinsurance Revolution

Poor people need insurance more than wealthier people do, because they have no other cushion. Few people are always in a state of poverty. Most are cyclically poor . They work and save, but then something happens and they fall into poverty : a crop failure, a loss of a job, the death of a breadwinner.
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TOMA in Laguna

Photos taken during the conduct of the Microinsurance Financial Literacy and Advocacy Roadshow at the Splash Oasis Hotel in Laguna from June 5-8, 2012.
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Monday, June 11, 2012

Stakeholders attend microinsurance forum

LOS BANOS, Laguna, June 9 (PIA) –- Representatives from Regions IV A & B of national and local government units, insurance companies, cooperatives, support organizations attended the 12th leg of the Financial Literacy on Microinsurance spearheaded by the Insurance Commission (IC) and the Department of Finance – National Credit Council (DOF-NCC).
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Saturday, June 9, 2012

Gov't agencies conduct financial literacy campaign

CALAMBA CITY, Laguna, June 7 (PIA) -- The Insurance Commission and the Department of Finance-National Credit Council (DOF-NCC) is holding the 12th leg of its financial literacy on microinsurance campaign in Los BaƱos which started last June 5 up to June 8.
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Friday, June 1, 2012

Pira eyes weather-based insurance for farmers

COMMERCIAL non-life insurers belonging to the Philippine Insurers and Reinsurers Association or Pira have agreed to craft an insurance product that departs radically from traditional indemnity-based insurance now in the market. 
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