Posted by Positive News Media
Mar 29, 2014 in Business News | 0 comments
ILOILO CITY, March 29 (PNA) — With the 2015 integration of South East Asian nations nearing, the microinsurance industry is looking at the possible implications that may arise from the establishment of a single-marketcommunity.
“We are currently working with the Department of Finance (DOF) on (that issue),” said Ferdinand George Florendo, Deputy Commissioner for Financial Affairs of the Insurance Commission (IC).
He added that the IC is developing dialogues with mutual benefit associations and microinsurance providers in confronting the challenges linked with the looming integration. They are weighing the possible opportunities and threats that go along with the lessenedtrade restrictions and the elimination of tariffs that highlight the Asean 2015 integration plan.
Florendo noted two scenarios. The first is that microinsurance providers may expand to other markets in the South East Asian region. On the other hand, microinsurance providers abroad may come to the Philippines and take a large market share.
There are at least 19 million Filipinos, most of whom belong to the “poorest of the poor,” who are covered by microinsurance.
Florendo said that there is a need to study these challenges and analyze their potential effects to the Philippine microinsurance industry.
“The IC has come up with talks on what to get from our Asean neighbors, and what they can get from us,” Florendo said, adding that there is a need to strengthen the local microinsurance industry through the national government, local government units and the private sector.
In the meantime, the IC is putting much focus on protecting insurance clients as well as helping marginalized sectors access microinsurance products.
The IC is also targetting that insurance shares have a three percent penetration rate in the country’s gross domestic product for it to be at par with other nations in the South East Asian region. (PNA)
CTB/AJP/RCA/VLO
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