Sunday, June 1, 2014

Philippines in top five of insurance coverage

Mindanao Daily Mirror
https://www.facebook.com/MinDailyMirror
Posted May 29, 2014

A microinsurance agent-company reported that the country now ranks in the top five with insured informal sector at 21.37 percent of the 91 million Filipinos since the government launched the program through the Department of Finance (DOF) in partnership with the Asian Development Bank of the Philippines.

Cebuana Lhuillier MicroInsurance (CLMI) regional manager Eduardo Flores said the company alone has already issued 1.5 million certificates last March to its clients, mostly families of migrant workers and pawnshop customers, complementing the government’s program to promote social protection and financial inclusion.

CLMI, which is acting as broker for seven accredited insurance providers, also covered public utility vehicle drivers. It is targeting seven million of its clients in Mindanao.

Last month, CLMI opened its Mindanao office in Davao City as part of its expansion to reach out to more people outside of its branches.

”We would like to bring into the people’s awareness, particularly those who are in the financially-challenged and vulnerable sector, that insurance need not make a big dent on one’s budget,” Flores said.

In 2012, DOF’s National Credit Council advocated for microinsurance coverage among fishermen, drivers, construction workers and other informal income earners, who are touted as “goldmines” for microinsurance coverage if providers have the right product and right pricing.

According to DOF, the past years showed that 66 percent of the more or less 30-million employed informal sectors are not insured but, are source of millions for microinsurance companies. DoF sees the informal sectors as a huge market considering that 99.6 percent of the total number of businesses is micro and small-medium enterprises and 96 percent of these have workers on job contracts.

The poor are considered “high risk” market in terms of vulnerability to unforeseen circumstances such as natural calamities. Microinsurance is designed to address the poor constituents, who do not normally buy insurance products because it beyond their means.

One flagship product of CLMI is the Alagang Cebuana Plus (ACP), which is selling one million certificates per month, offering affordable personal accident coverage for only P25. Those who avail ACP are assured of a P20,000 accidental death , dismemberment and disability and P5,000 fire-cash assistance, valid for four months.

Last month, 10 families who were victims of the Isla Verde fire incident were awarded their cash assistance even if they have just availed of the ACP.

AYAN C. MELLEJOR/MDM

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