Micro-insurance program tailored to needs of the poor - DOF director

Philippine Information Agency

By Susan C. Aro

Friday 27th of July 2012

BAGUIO CITY, July 27 (PIA) - - The Department of Finance and its partners are into massive advocacy campaign on micro-insurance program which gives access and assurance to the poor sector of society.

Finance Director Joselito Almario, who was one of the lecturers on the Advocacy Seminar on Micro-insurance held in this city last week, said that government together with private sector insurance providers and micro-finance institutions had come up with a micro-insurance program tailored-fit to the needs of the poor and those not formally enrolled in mandated insurance systems.

Almario, who is also deputy director of the National Credit Council, explained that micro-insurance are insurance, insurance-like, and other similar business activity which provide specific products and services that meet the needs of the poor for risk protection and relief against distress, disaster, or any untoward incidents.

The amount of premium or contribution per micro-insurance policy ranges from P1 to P20 per day.

The Asian Development Bank and the German International Cooperation provide technical assistance to the micro-insurance program.

Almario assured that micro-insurance packages are supervised by the Insurance Commission and covered by stringent rules and regulations to be adhered by providers which guarantee benefits to be availed by the poor in the event something happens to them.

He recounted how through the years, micro-finance originally dubbed as micro-credit has evolved and now covers the micro-insurance program with government giving recognition on the need to uplift the standard of living of the poor through insurance access.

There is also a wrong notion that the poor cannot pay. Past experiences prove that they can pay in informal credit institutions, according to Almario.

Insurance, unlike credit, savings, payment transfers, and remittances was the only major financial product not accessible to micro, small, and medium entrepreneurs (MSMEs), Almario noted.

He said there is poor insurance penetration among marginalized or the poor sector due to absence of policy and regulatory framework and inappropriate products as these are unaffordable, not tailored fit with complex and complicated contracts and cumbersome requirements.

There is also lack of awareness because people think these are just additional financial burdens and with no immediate benefits and the belief on the a "leave it to destiny mentality."

But through product innovation, micro-insurance is already designed with affordable premium, simpler, and easy-to-understand contract and tailored fit to the needs of the poor, Almario pointed out.

If micro-credit provides the unserved and underserved their present financial needs, mico-insurance will provide for the future unforeseen and unexpected financial needs of the poor, he declared.

Almario said that the Economist Intelligence Unit gave recognition to the micro-finance program of government in 2010.

It was ranked first in regulatory framework, second among 54 countries in overall microfinance business environment, 4th in institutional development and 18th in investment climate. It has maintained its top rank in Regulatory Framework in 2011.

Meantime, Baguio Mayor Mauricio Domogan said there's need to screen insurance companies involved, and strengthen their capability to improve public perception.

He believes the program is important in enhancing the capability of insurance providers to be able to entice those who would like to avail of the product. (JDP/SCA-PIA CAR, Baguio) 

IC targets higher insurance penetration

Business World

Finance

---

Posted on July 24, 2012 09:12:15 PM

THE INSURANCE Commission (IC) wants to increase the penetration rate of insurance in the country to 1.5% within the next two years through the cooperation of the government and the private sector, its top official said yesterday.

“Our target is to increase our penetration rate to around 1.5% within the next two years,” IC Commissioner Emmanuel F. Dooc toldBusinessWorld on the sidelines of the 6^th Asia Conference on Microinsurance yesterday.

The country’s insurance penetration rate -- insurance premiums as percentage of gross domestic product -- stood at 1.2% as of end-December, according to IC data.

“To achieve growth, we should see more activity from both the private sector and the government,” Mr. Dooc said.

“The private insurance sector has responded well to our call of increasing the penetration rate in the country by designing and marketing insurance products that promote big benefits in small packages at affordable cost, which are the microinsurance products,” he added.

The 6^th Asia Conference on Microinsurance, with its theme of “Microinsurance as a Growth Catalyst for Insurance to Reach out to the Masses,” gathered microinsurance experts in the region to assess and exchange information on the state of microinsurance across Asia.

“We have to treble our production to be at par with our Southeast Asian neighbors which have an average penetration rate of around 3%,” Mr. Dooc also said.

“A lot of financial literacy programs need to be done and companies must continuously innovate and develop products targeted to the poor.”

The IC chief said microinsurance will help increase the insurance penetration rate in the country given its large market potential.

IC data showed that a total of four million microinsurance policies were sold last year.

Insurers at present are allowed to design their products in line with their target market’s demand. Their products are considered microinsurance products as long as they comply with the IC’s definition for such products.

According to Insurance Memorandum Circular 1-2010, microinsurance products are those whose daily premiums do not exceed 5% of the current daily minimum wage rate of non-agricultural workers in Metro Manila.

Furthermore, the maximum sum of guaranteed benefits should not be 500 times the daily minimum wage rate for non-agricultural workers in Metro Manila.

As of April this year, 18 insurance companies were allowed by the IC to sell microinsurance products. -- Ann Rozainne R. Gregorio

BenLife, Smart launch insurance through text

• THE DAILY TRIBUNE

• Written by  Charlie V. Manalo 
• Thursday, 26 July 2012 00:00

Filipino insurer Beneficial Life Insurance (BenLife) and telecommunication giant Smart Communication yesterday launched a new mobile micro-insurance service aimed at providing ordinary Filipinos with accident and death insurance for as low as P 3 per month.

At a press briefing held at the Mandarin Oriental Hotel in Makati City, executives of BenLife and Smart inaugurated InsureTxt which offers accidental death coverage of up to P50,000 for as low as P3 per month.

The service includes coverage for death caused by natural calamities and is available to all Smart and Talk N’ Text subscribers. All InsureTxt transactions, from registration to payment and renewal, are all done through text messaging.

The insurance program allows a minimum insurance coverage of P10,000 for P3 and a maximum policy of P50,000 for P9. Smart and Talk N’ Text subscribers however can avail of multiple insurance policies by through multiple registration using different sim cards.

“Mobile micro-insurance, as exemplified by InsureTXT, is simply a great idea whose time has finally come,” said Insurance Commission (IC) Commissioner Emmanuel Dooc. “It must be done because Filipinos need this kind of service, and because we can now offer it — thanks to the help of private sector partners like BenLife and Smart.”

Introduced on the occasion of the ongoing 6th Asia Microinsurance Conference, InsureTxt was presented by BenLife and Smart officials to Department of Finance Secretary Cesar Purisima and Dooc. According to BenLife, InsureTxt is their response to the challenge of the IC to increase insurance coverage among Filipinos, particularly those living below the poverty line.

“Mobile phones represent the easiest, most cost-efficient way to offer insurance to Filipinos. Through our partnership with Smart, we now are able to reach out to the over 50 million Filipinos on their network,” said Enrique Fernadez, chairma of BenLife.

Purisima lauded the insurance company for embracing technology and innovation to offer insurance to Filipinos who could least afford it and at the same time cited that the country ranks way below other Asean countries in terms of mass based insurance.

According to Purisima, the new facility of BenLife is a much needed advancement in the insurance field and will certainly be a welcome development, especially for the lower classes of Philippine society.

Dooc said he views the launch of the mobile micro-insurance service of BenLife as very timely.

“With the onset of the typhoon season, everybody can potentially be a victim of tragedies such as floods, landslides, road accidents, etc.,” he said.

This is clearly evident as the Metropolitan Manila Development Authority (MMDA) last Saturday, July 21, reported recorded the highest incidents of road accidents in Edsa alone.

BenLife also revealed that by the end of the year it would have already complied with the IC’s mandate for insurance companies to increase capitalization to P1 billion by 2020 — eight years ahead of schedule.

According to Fernandez, BenLife’s early compliance underscores the company’s commitment to the industry, to the efforts of government and to the Filipino people.

Last modified on Wednesday, 25 July 2012 21:04

Beneficial Life offers new microinsurance product at P3-a-day premium payment

BUSINESS MIRROR
FINANCE
WEDNESDAY, 25 JULY 2012 19:36
JUN VALLECERA / REPORTER


BENEFICIAL Life Insurance (BenLife) has started offering a microinsurance product involving premium payments as small as P3 a day but with a potential payout as large as P50,000 for accidental death.

BenLife is offering the product in partnership with Smart Telecommunications through whose platform premium payments may be made.

The product is called InsureTxt, covers death caused by natural calamities and is available to all SMART and Talk N’ Text subscribers.

All InsureTxt transactions, from registration to payment and renewal, are done through text messaging.

The partners presented the product before Finance Secretary Cesar V. Purisima and Insurance Commissioner Emmanual F. Dooc who were pleased this was specifically targeted at poor Filipinos who could not afford the more expensive insurance cover.

Purisima said the product was a much-needed advancement in the insurance field and was a welcome development for those in the lower classes of Philippine society.

For his part, IC Commissioner Emmanuel Dooc, also saw the launch of the  mobile micro insurance service of Ben life  as very timely.

“With the onset of the typhoon season, everybody can potentially be a victim of tragedies such as floods, landslides, road accidents, etc.,” he said.

This was clearly evident among officials at the Metro Manila Development Authority (MMDA) who on Saturday, July 21 reported on a rash of road accidents along EDSA.

“Mobile microinsurance, as exemplified by InsureTXT, is simply a great idea whose time has finally come,” Dooc said.

“It must be done because Filipinos need this kind of service, and because we can now offer it – thanks to the help of private sector partners like BenLife and SMART,” he said.

Asia Microinsurance Conference, InsureTxt was presented by BenLife and SMART officials to the regulators as their collective response to the challenge of increasing insurance penetration among Filipinos, particularly those living below the poverty line.

“Mobile phones represent the easiest, most cost-efficient way to offer insurance to Filipinos. Through our partnership with SMART, we now are able to reach out to the over 50 million Filipinos on their network,” said Enrique Fernadez, chairman of BenLife.

BenLife also bared full compliance at end of the year to the mandate for insurance companies to increase capitalization to P1 billion by 2020 or eight years ahead of schedule.

According to Fernandez, BenLife’s early compliance underscores the company’s commitment to the industry, to the efforts of government and to the Filipino people.

Finance dept ups micro-insurance literacy program

Sunstar - Baguio
Tuesday, July 24, 2012

THE Micro-insurance program is multi-awarded and the best among Asian countries as disclosed by Department of Finance (DoF) Undersecretary Gil Beltran, in a press conference, Friday, during the Cordillera Advocacy Seminar: “Magpaseguro para Protektado.”

With the sound economic climate in the country as growth rate stands at 6.4 percent this first quarter of 2012, it is a viable program to both service provider and potential clients.
 
Beltran said the micro-insurance program intends to help the poor rise from poverty. Aside from financial risk protection – from natural or personal disaster or hazard, with micro-financing also able to support the low-income earners sustain their livelihood.

Beltran said the country’s micro-insurance program is on track and running smoothly. From zero when they started two years ago, there are now four million micro-insurance policies sold by both mutual benefit associations and insurance companies.

Beltran assured micro-insurance has a big market as around 26 percent of the country’s population lives below the poverty line and with affordable premium ranges from P1.00 to a maximum of P20.00 a day, policy holders are also guaranteed with insurance benefits of up to P200,000.

Beltran explained along with their micro-insurance development partners such as the Insurance Commission, Asian Development Bank, Japan Fund for Poverty reduction and German International Cooperation, they are continuously working hard to put the whole system in place, including making sure only capable and licensed micro-insurance providers  are involved in the market.

Beltran also enjoined local media practitioners to push for a wider acceptance of micro-insurance among the informal and low income sectors.

“By helping the poor, through micro-insurance, we can enable them to participate more actively, economically and by continuously improving the program and with the government’s goal of a stronger economic growth of around seven to eight percent, we are hoping to make a dent on the country’s poverty thresh hold, maybe from 26 percent, down to 15 to 16 percent by 2016,” Beltran added.

The advocacy seminar capped a three-day micro finance training from July 16 to 19 as part of the nationwide micro-insurance literacy campaign. (Carlito C. Dar)

ADB extends expiring microinsurance grant

By Ted P. Torres
Business, Philippine Star
Posted July 23, 2012


Manila, Philippines - The Asian Development Bank (ADB) has extended its technical assistance of $1-million for the further development of microinsurance in the Philippines.


The microinsurance project covered by the grant expires in September this year. It was first signed in September 2007.


Insurance Commission (IC) head Emmanuel L. Dooc said that the extension was granted in a meeting this week with representatives of the Japanese government and the ADB held in Baguio.


“The extension allows us to continue capacity building for the proper regulatory environment,” Dooc said, adding the extension will include coverage for natural catastrophes.”


A still undisclosed amount would be added to the original $1-million grant.


The executing agencies are the Department of Finance (DOF) and the National Credit Council (NCC).


The technical assistance falls under the Microfinance Development Program of the ADB, while the funding comes from the Japan Fund for Poverty Reduction of the Japanese national government.


The original technical assistance came in three components with the first component focused on improving regulatory framework with an allocation of roughly $688,137.

The second component was aimed at strengthening the capacity of government regulators and microinsurance providers, while the third and last component was aimed at promoting financial literary on microinsurance.

Spearheading this undertaking is the NCC and the IC, while the Cooperative Development Authority (CDA) and the National Anti-Poverty Commission (NAPC) would participate in the later stages.


The ADB explained that microfinance, including microsavings, microcredit, and microinsurance services, has expanded in the Philippines and reduced poverty in the past decade.


“Microinsurance is an emerging financial service for the poor, which has been recognized as a potent tool to minimize the financial risks to poor households, especially when premium payments are affordable,” it said.



Savings and credit are used to prepare for predictable life cycle events, but insurance could protect the poor from unpredictable shocks such as death, illness, injury, theft, and lately, the increasing number of natural disasters.


“Low-income households are most vulnerable to these risks. The costs of funerals, hospitalization, and lost or damaged property forces working capital to be directed toward non-productive ends, worsening poverty,” the Manila-based multilateral lending agency added.


With the help of the technical assistance and the German International Cooperation (GIZ), the government formulated last year the Microinsurance National Strategy and Regulatory Framework which would compliment the Microfinance Development Program (MDP).


According to the NCC, there were 3.5 million microinsurance policyholders in the country as of end December 2011.


Once the domain of the mutual benefit associations (MBAs) and non-government organizations (NGOs), it has not expanded to more microfinance institutions such as rural banks and cooperatives. All are now under the direct or indirect supervision of the IC.

DOF intensifies micro-insurance literacy program

By Carlito C. Dar

Philippine Information Agency

Saturday 21st of July 2012

BAGUIO CITY, July 21 (PIA) -- The Department of Finance (DOF) has intensified micro-insurance literacy program through the advocacy seminar on micro-insurance dubbed, “Magpaseguro para Protektado.”

DOF Undersecretary Gil Beltran said in a press conference on Friday during the Cordillera leg of the seminar, “The micro-insurance program in the Philippines is multi-awarded and the best among Asian countries and also stands second only to Peru, worldwide. With the sound economic climate in the country as growth rate stands at 6.4 percent this first quarter of 2012, it is a viable program to both service provider and potential clients.”

Beltran said the micro-insurance program intends to help the poor rise from poverty. Aside from financial risk protection – from natural or personal disaster or hazard, with micro-financing will also able to support the low-income earners sustains their livelihood.

Beltran said the country’s micro-insurance program is on track and running smoothly. From zero when they started two years ago, there are now four million micro-insurance policies sold by both mutual benefit associations and insurance companies.

He assured that micro-insurance has a big market as around 26 percent of the country’s population lives below the poverty line and with affordable premium or contribution which ranges from P1 to a maximum of P20 a day, policy holders are also guaranteed with insurance benefits of up to P200,000.

Beltran explained that along with their micro-insurance development partners such as the Insurance Commission, Asian Development Bank, Japan Fund for Poverty Reduction, and German International Cooperation, they are continuously working hard to put the whole system in place, including making sure that only capable and licensed micro-insurance providers are involved in the market.

Beltran also enjoined the local media practitioners in pushing for a wider acceptance of micro-insurance among the informal and low income sectors.

“By helping the poor, through micro-insurance, we can enable them to participate more actively, economically,” Beltran said. “By continuously improving the program and with the government’s goal of a stronger economic growth of around seven to eight percent, we are hoping to make a dent on the country’s poverty thresh hold, maybe from 26 percent, down to 15 to 16 percent by 2016,” he added.

Other panelists during the said press conference were Evelyn Singune of Insurance Commission Field Examination, Takahiru Etchu of Japan Fund for Poverty Reduction, Hiroyuki Aoki of Asian Development Bank, and Antonis Malagardis of German International Cooperation.

The advocacy seminar capped a three-day micro finance training from July 16 to 19 as part of the nationwide micro-insurance literacy campaign. (JDP/CCD-PIA CAR) 

Tagalog news: Gobyerno ng PH, isinusulong ang microinsurance para makatulong sa mahihirap

Philippine Information Agency By Hannah Silvano  ·   11 views  ·   posted 2 days ago  ·   0 comments

Isinusulong ng gobyerno ng Pilipinas sa pamamagitan ng Department of Finance (DOF) ang malakihang pagpapatupad ng "microinsurance" upang makatulong sa mahihirap lalo na sa panahon ng mga kalamidad.

Ang microinsurance ay tumutukoy sa insurance, insurance-like at iba pang katulad na gawain na nagbibigay ng partikular na produkto at serbisyo na makakapagsigurado sa mga mahihirap na protektado ang kanilang pinansyal na kalagayan at mabibigyan sila ng mga tulong sa panahon ng sakuna at iba pang kagipitan.

Ayon kay DOF Director III at deputy executive director ng DOF-National Credit Council (NCC) Joselito Almario na ang microinsurance ay abot-kaya dahil sa "premium" na kasing baba ng P1 hanggang P20 kada araw o P30 kada buwan.

Maliban sa mababang "premium," aniya, meron din itong garantisadong mga benepisyo na 500 beses ng "daily minimum wage" ng manggagawa o hindi sosobra sa P200,000 na maaring kuhanin pagdating ng pangangailangan.

Inilunsad ang microinsurance noong 2010 bilang istratehiya ng gobyerno upang masigurado ang malawak na access ng "low-income sector" o ng mahihirap sa mga proteksyon lalo na kapag dumating ang panahon ng sakuna.

Si Almario ay tagapagsalita sa ginanap na tatlong araw na pagsasanay tungkol sa "microinsurance advocacy" nang nakaraang linggo (Hulyo 3-5) sa East Asia Royal Hotel.

Ang naturang adbokasiyang pagsasanay ay sinuportahan ng Asian Development Bank at inorganisa naman ng DOF-Manila.

Ang nasabing training ay dinaluhan ng 36 na mga partisipante na nagmula pa sa mga nasyonal na ahensya ng gobyerno, "non-government organization" (NGO), kooperatiba, mga ahensya ng insurance at mga rural banks na nagmula pa ang iba sa Cagayan de Oro City, Davao City at Lanao.

Ang training ay hindi lamang nakatuon sa pagtuturo sa mga partisipante kung paano magsagawa ng training at advocacy session; pag-uunawa sa responsibilidad ng mga nagsusulong ng micro-insurance; paghahasa ng kanilang kakayahan sa pagsasalita, pero maging, sa kabuuan, ay nabigyan sila ng sapat na kaalaman ukol sa micro-insurance at ang estado nito sa Pilipinas, ayon kay research and advocacy specialist ng ADB Laila Garcia.

Sa isang news conference noong Biyernes, July 6, inihayag ni Almario na ang microinsurance ay “ipon para sa hinaharap.”

Maaring mabili o makuha ang microinsurance sa pamamagitan ng lisensyadong ahente ng microinsurance kagaya ng mga kooperatiba, mga NGO, rural na bangko at iba pang kumpanya ng insurance na aprubado ng Insurance Commission. (Hannah Silvano/CTApelacio/PIA General Santos City)

PH gov’t pushes for microinsurance to help the poor during disaster

Philippine Information Agency

By Catherine T. Apelacio

Monday 9th of July 2012

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GENERAL SANTOS CITY, July 9 (PIA) -- The Philippine government through the Department of Finance (DOF) is pushing for the massive implementation of micro-insurance to help the poor cope during disasters.

Micro-insurance refers to the insurance, insurance-like and other similar business activity of providing specific products and services to ensure that the poor are financially protected and provided relief in times of disaster.

DOF Director III Joselito Almario, who is also deputy executive director of DOF-National Credit Council (NCC), said micro-insurance is affordable with premiums as low as P1 to P20 per day or as low as P30 per month.

According to him, aside from the low premiums, it also has guaranteed benefits. “It is 500 times the daily minimum wage for non-agricultural workers (Metro Manila), or in actual current rates, should not exceed P200,000.”

“Itong micro-insurance ay may kakayahang magbigay ng proteksyon sa may mga maliliit na kita o sahod sa halagang abot kaya (Microinsurance can give protection to the low-income sector in a very affordable rate),” he explained.

He said microinsurance was launched in 2010 as government’s strategy to ensure greater access of the low-income sector or the poor to risk protection especially in times of disasters.

“Sa microinsurance tiyak na maseseguro ang benepisyo kung may mga dumarating na di-inaasahang pangyayari (In micro-insurance, we are assured of benefits especially during unforeseen events),” he added.

Almario was speaker during a 3-day training on microinsurance advocacy held last week (July 3-5) at East Asia Royale Hotel here. The event was funded by the Asian Development Bank (ADB) and organized by DOF-Manila.

The 36 participants who came from national government agencies (NGAs), non-government organizations (NGOs), cooperatives, insurance agencies and rural banks readily embraced the multi-faceted learning on microinsurance advocacy.

Facilitator Laila Garcia, research and advocacy specialist from the ADB, said the training did not only focus on teaching participants on how to conduct a training and advocacy session; understanding the role and responsibilities of microinsurance advocates; honing their presentation skills and facilitation techniques, but it has also, in general equipped them with the knowledge on microinsurance and its status in the Philippines.

Speaker Melinda Grace Labao, Pioneer Life, Incorporated supervisor said “risk is the very aspect” that microinsurance came to existence, citing the importance of why low-income individuals should get themselves insured so they can be protected from risks.

“Ang pagkakaroon ng seguro ay magsisilbing proteksyon para sa mga impormal na sektor. Mas madali silang makakabawi dahil may mapagkukunan sila sa oras ng pagdating ng di-inaasahang pangyayari gaya na lang ng kamatayan, akisdente at pagkasakit, pagkasunog ng ari-arian, kalamidad at pananalasa ng kalikasan,” Labao explained.

(Having a microinsurance will guarantee the low-income individuals the protection from risks brought about by contingent events such as death, accidents and illness, loss of property resulting from fire, calamity and the like.)

At a news conference Friday (July 6), Almario described microinsurance as “savings for the future” recognizing though the lack of access of the poor “to formal financial services.”

Further, he presented the three special features of microinsurance which are “simplicity, transparency, and accessibility” as compared to commercial insurance.

The DOF also recognized the need to further boost the “microinsurance investment climate” by encouraging the active involvement of private sectors, NGOs and strengthening the participation of local governments for effective governance and provision of necessary infrastructure.

Microinsurance can be bought or accessed through licensed microinsurance agents such as cooperatives, NGOs, rural banks and other insurance companies approved by the Insurance Commission. (CT Apelacio/PIA-12 General Santos City)