Malaya Business Insights
January 30, 2014
Microinsurance providers paid victims of typhoon Yolanda P500 million within 10 days after claims were submitted, according to Finance Undersecretary and Chief Economist Gil Beltran helping the victims recover faster.
Beltran said the Philippines has the highest microinsurance coverage among Asian emerging economies in 2013, with 20.4 percent of the total population covered by microinsurance.
Insurance cover for the Yolanda victims include damage from floods, and also life insurance.
According to the Department of Finance’s latest economic bulletin, microinsurance coverage rose from three million in 2008 or merely 3.3 percent of the population, to 19.95 million last year, a six-fold increase over five years.
In an interview with reporters at the sidelines of the Capacity Building for Microinsurance Project Launch, Beltran said the industry can tap a lot of clients, especially since the Philippines is often hit by typhoons and other natural calamities.
“We make sure that the providers are all legal. They are subject to regulation by the Insurance Commission, so they are monitored very closely,” Beltran said. The DOF said that there are 17 life insurance companies, 18 non-life insurance companies, and 19 mutual benefit associations offering microinsurance products.
Ranked next to the Philippines are Thailand and India, with 14.1 percent and 8.9 percent of its population covered by microinsurance, respectively.
According to the DOF, microinsurance refers to “the insurance, insurance-like, and other similar business activity of providing specific products and services that meet the needs of the poor for risk protection and relief against distress, misfortune, or contingent event.”
“Since microinsurance products and services are intended to meet the risk protection needs of the low-income sector, affordability of premium payments is low,” the DOF said.
The agency said for microinsurance products, the amount of premiums, contributions, fees or charges, computed on a daily basis, does not exceed five percent of the current daily minimum wage rate for non-agricultural workers in Metro Manila.
It also said the maximum sum of guaranteed benefits is not more than 500 times the daily minimum wage rate for non-agricultural workers in Metro Manila.
A microinsurance contract shall cover the insured, and at his or her option, may include his or her immediate family, as well as his or her assets.
The DOF said that a microinsurance contract may cover any of the following: death; accident and illness; fire and other extended perils; calamities, disasters, and other catastrophic events; casualty such as personal accident; and other contingent events as may be determined by the concerned regulator.
January 30, 2014
Microinsurance providers paid victims of typhoon Yolanda P500 million within 10 days after claims were submitted, according to Finance Undersecretary and Chief Economist Gil Beltran helping the victims recover faster.
Beltran said the Philippines has the highest microinsurance coverage among Asian emerging economies in 2013, with 20.4 percent of the total population covered by microinsurance.
Insurance cover for the Yolanda victims include damage from floods, and also life insurance.
According to the Department of Finance’s latest economic bulletin, microinsurance coverage rose from three million in 2008 or merely 3.3 percent of the population, to 19.95 million last year, a six-fold increase over five years.
In an interview with reporters at the sidelines of the Capacity Building for Microinsurance Project Launch, Beltran said the industry can tap a lot of clients, especially since the Philippines is often hit by typhoons and other natural calamities.
“We make sure that the providers are all legal. They are subject to regulation by the Insurance Commission, so they are monitored very closely,” Beltran said. The DOF said that there are 17 life insurance companies, 18 non-life insurance companies, and 19 mutual benefit associations offering microinsurance products.
Ranked next to the Philippines are Thailand and India, with 14.1 percent and 8.9 percent of its population covered by microinsurance, respectively.
According to the DOF, microinsurance refers to “the insurance, insurance-like, and other similar business activity of providing specific products and services that meet the needs of the poor for risk protection and relief against distress, misfortune, or contingent event.”
“Since microinsurance products and services are intended to meet the risk protection needs of the low-income sector, affordability of premium payments is low,” the DOF said.
The agency said for microinsurance products, the amount of premiums, contributions, fees or charges, computed on a daily basis, does not exceed five percent of the current daily minimum wage rate for non-agricultural workers in Metro Manila.
It also said the maximum sum of guaranteed benefits is not more than 500 times the daily minimum wage rate for non-agricultural workers in Metro Manila.
A microinsurance contract shall cover the insured, and at his or her option, may include his or her immediate family, as well as his or her assets.
The DOF said that a microinsurance contract may cover any of the following: death; accident and illness; fire and other extended perils; calamities, disasters, and other catastrophic events; casualty such as personal accident; and other contingent events as may be determined by the concerned regulator.
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