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.
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