tag:blogger.com,1999:blog-51125798874714152802024-03-13T09:58:36.319+08:00Microinsurance PhilippinesAnonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.comBlogger245125tag:blogger.com,1999:blog-5112579887471415280.post-58869065917425082382015-04-30T09:50:00.001+08:002015-04-30T09:50:10.785+08:00APEC recommends microinsurance as a tool in achieving resilient economies<iframe allowfullscreen="" frameborder="0" height="344" src="https://www.youtube.com/embed/6ozvAdqSu7Q" width="459"></iframe>Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-27821856223311518332015-04-01T09:12:00.000+08:002015-04-01T09:12:10.533+08:00Gov’t Agencies & Partners Eye NCR Stance on Health Microinsurance<div dir="ltr" style="text-align: left;" trbidi="on">
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Philippine Information Agency<br />
March 28, 2015<br />
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MANILA, 28 March (PIA)--The Department of Finance–National Credit Council (DOF-NCC), Insurance Commission (IC) and Department of Health (DOH) are putting the microinsurance stake deep in the ground so that every low-income Filipino, including the informal sectors, would have access to relevant and cost-sensitive healthcare financing.<br />
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The National Capital Region consultation on March 27 at New World Manila Bay Hotel was the final round in the series of five regional Health Microinsurance (HMI) consultations held in major cities across the country.<br />
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So far, close to 500 participants from public and private providers and practitioners in health and insurance sounded out on the HMI document. The German Development Cooperation (GIZ) continues to provide the support for HMI Policy and Regulatory Framework consultations which will culminate at the NCR.<br />
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It is expected that the final leg of discussions right at the seat of Philippine government would be dynamic particularly on the Philippine initiatives on microinsurance, updates on the social health insurance (SHI) and the proposed draft of HMI policy and regulatory framework.<br />
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NCR accounts for 37.2% of the gross domestic product of the Philippines and remains the premier center for finance and commerce.<br />
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Moreover, Metro Manila is known as the Philippine’s global power city with 25 million Filipinos who impact various fields in commerce, finance, media, art, fashion, research, technology, education, and entertainment.<br />
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Hopefully soon, it will include inclusive insurance.<br />
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At present, health issues remain one of the key concerns in Metro Manila along with poverty and population pressures. It is the second most populated region among 17 regions in the country and seventh most populous metropolitan area in Asia.<br />
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The proposed HMI framework is intended to support the Universal Health Care (UHC) outlined in the Philippine Development Plan (PDP 2011-2016) which safeguards equitable access to health care for all Filipinos, particularly the poor. The HMI framework sets to address the health needs of more than 12 million Filipinos who considered their present state poor according to 2014 SWS survey.<br />
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The PDP envisions a National Health Insurance Program (NHIP) that encourages public-private partnerships to respond to the current gaps in healthcare risk protection in the country. Philhealth is the government’s current frontline health insurance provider along with a handful of licensed Health Maintenance Organizations (HMOs).<br />
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At present, 82% of Filipinos have some form of health coverage; the gap remains wide for healthcare financial risk protection, particularly to the most vulnerable low-income and informal sectors. Philhealth provides basic health care packages but has not covered medical transport, drugs and medical supplies outside of the hospital.<br />
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According to DOH, 54 percent of the total health expenditure comprised out-of-pocket expenses.<br />
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Addressing the gaps thru public-private partnership, the government’s founding triumvirate (DOH, DOF-NCC, and IC) and the health and insurance industry key representatives collaborated in a Technical Working Group to work on the draft of the HMI framework.<br />
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The German Development Cooperation (GIZ) through its regional program on microinsurance, the Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia program (GIZ-RFPI Asia) provided the technical and financial support.<br />
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As such, the HMI framework is envisioned to augment the UHC program through a viable and sustainable private sector microinsurance industry. HMI is expected to provide every Filipino with greater coverage and wider access to simple, affordable, appropriate and effective HMI products and services.<br />
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Microinsurance responds to the needs and paying capacities of the low-income and informal sectors. Products have affordable premiums, the benefits correspond to the risks, and claims settlement is fast.<br />
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The Luzon consultations were split in two consecutive consultations in Laguna and Pampanga. The Visayas and Mindanao consultations were held in Cebu and Davao respectively last year. More than three hundred providers and practitioners from health and insurance sectors participated in these regions.<br />
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Inputs from the consultations will be collated and reflected in the final framework which will be launched to the public in the second quarter of 2015.(DOH/DOF-NCC/GIZ/PIA-NCR)<br />
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- See more at: http://news.pia.gov.ph/article/view/231427438091/gov-t-agencies-partners-eye-ncr-stance-on-health-microinsurance#sthash.NR5pKH3l.dpuf</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-63931493474197763852015-02-28T20:46:00.000+08:002015-02-28T20:46:17.475+08:00Tapping microinsurance to help address health, disaster risks<div dir="ltr" style="text-align: left;" trbidi="on">
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Manila Times</div>
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THE Philippines was recently cited as the country with the highest insurance penetration rate in Asia by a landscape study commissioned by the Munich Re Foundation in 2013.</div>
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Simply put, this means that one in every five Filipinos is protected by microinsurance. This penetration ratio also tells us that the strategy and mechanism for distribution adopted by microinsurance players in the country have been successful in providing access for the product.</div>
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Rural banks, cooperatives and microfinance institutions—as licensed distributors—have largely not efficiently reached before.</div>
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A challenge remains, however, in providing products that specifically address health and disaster risks.</div>
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Despite the protection offered by the state-run Philippine Health Insurance Corp. (PhilHealth), there is still a need to further enhance coverage in order to reduce the out-of-pocket expenditures of low-income families not efficiently reached before.</div>
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A challenge remains, however, in providing products that specifically address health and disaster risks.</div>
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Despite the protection offered by the state-run Philippine Health Insurance Corp. (PhilHealth), there is still a need to further enhance coverage in order to reduce the out-of-pocket expenditures of low-income families who typically do not have health maintenance organization (HMO) coverage to complement PhilHealth.</div>
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To address this, the Department of Finance, Insurance Commission and Department of Health partnered with the private sector to draft a framework for health microinsurance and promote a more inclusive health insurance system. The first public consultation for the framework was held in Cebu last month.</div>
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Disaster-related insurance, on the other hand, is also gaining ground as more financial institutions participate to protect the most vulnerable. When the Visayas Region was hit by a powerful earthquake and a destructive super typhoon in 2013, it revealed how defenseless communities are when faced with disasters of such magnitude.</div>
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Progressive Bank, a rural bank in Iloilo, played a critical role in helping its clients cope with the effects of the disaster through its microinsurance program, Akap. The cash benefit clients received under the program was used to finance burial expenses, house repairs and purchase of materials for their small businesses.</div>
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This proves that while micro insurance is not the silver bullet to poverty eradication, it gives individuals the chance to quickly recover from a financial loss.</div>
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Looking forward, coverage will likely continue its upward trend as awareness and the number of Filipinos who benefit from various financial inclusion programs increase. Through continuous innovations in product design and delivery mechanism, our success shall also be complemented with more stories on the positive impact of microinsurance on the lives of Filipinos.</div>
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Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-59970739034257895832015-02-28T20:36:00.000+08:002015-02-28T20:36:15.536+08:00Microinsurance responds to disaster protection<div dir="ltr" style="text-align: left;" trbidi="on">
Manila Times<br />
February 4, 2015 10:04 pm<br />
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The microinsurance industry has made its call for public and private players to effectively respond to the challenges of climate change.<br />
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In the recently concluded culminating activity of the National Micro insurance Month this January, a Microinsurance Manifesto was presented and signed by regulators and industry stakeholders as an expression of support and commitment to address the need to create measures that will allow Filipinos to cope with threats of natural disasters.<br />
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Lead agencies that signed the manifesto include the Department of Finance, Bangko Sentral ng Pilipinas, Insurance Commission, Cooperative Development Authority, Securities and Exchange Commission and the Climate Change Commission.<br />
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Among others, the Manifesto urges the government to continue providing an enabling and conducive policy environment for micro in su rance. The Insurance Commission earlier reported that there are already 28 million Filipinos covered with micro insurance by end of 2014. The country has also been cited for having the highest penetration ratio in the Asian region at roughly 28 percent.<br />
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Insurance providers, on the other hand, are encouraged to develop simple, affordable and innovative microinsurance products and services through easily accessible delivery channels.<br />
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Rural banks—because of their strategic location in the countryside—are among the ideal partners for the effective and fast delivery of mi croinsurance coverage. In support of this cause, the Rural Bankers Association of the Philippines, through its technical arm, the Rural Bankers Research and Development Foundation, Inc., has been conducting trainings to build the capacity of rural banks as effective channels of microinsurance.<br />
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To date, there are now 43 rural banks authorized by the Insurance Commission as mi croinsurance agents, providing protection to their low-income clients from financial loss including those brought by calamities.<br />
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Microinsurance has proven to be an effective tool to safeguard the poor from risks as it allows them to avail of financial security measures at low costs. By being an active provider of micro insurance, rural banks are given the chance not only to reinforce their relevance to their clients but to help the country attain a more inclusive growth, as well.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-79767147581350550452015-02-28T20:29:00.000+08:002015-02-28T20:33:17.458+08:00Government, private sector ink microinsurance manifesto<div dir="ltr" style="text-align: left;" trbidi="on">
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<span class="article-date-info" style="background-color: initial; font-size: 12.25px; line-height: 18.375px;">Updated February 24, 2015 - 12:00am</span></h1>
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MANILA, Philippines - A manifesto outlining the country’s masterplan for microinsurance was launched recently involving six key government agencies.</div>
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The one-page document spells out the country’s goals for insuring low-income Filipinos as protection for risks brought about by climate change.</div>
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Finance Undersecretary Gil Beltran said that microinsurance is one of the best tool for poor countrymen to help them adapt to climate change.</div>
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“With microinsurance, they have a better chance of recovering from financial shocks caused by typhoons, floods and other natural or man-made calamities,” he added.</div>
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Microinsurance is insurance sold in sachet form. It cost as low as P25 and provide payouts as low as P5,000. It sold to farmers, fisherfolk, vendors, and other low-income groups.</div>
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Beltran said the signing of the manifesto signals a more active cooperation among government agencies, and between government and the private sector for the continued development of microinsurance.</div>
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Aside from the Department of Finance, the agencies that signed the manifesto were the Insurance Commission, the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, and the Climate Change Commission.</div>
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Representatives from the Japanese and German governments as well as more than 200 private companies with microinsurance products witnessed the signing.</div>
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Beltran added that the number of Filipinos with microinsurance has already grown tremendously from a low of three million in 2008 to unofficially 28 million as of end of 2014.</div>
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This is the reason why the Philippines now leads Asia Oceania in the percentage of population with microinsurance.</div>
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He also cited the P700 million paid by microinsurance for those who suffered from Typhoon Yolanda, was the highest microinsurance payout for a single incident so far.</div>
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Yet despite these achievements, there was still so much work to do.</div>
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“More than 80 percent of the population is at risk of the negative impact of climate change. We must ensure that all of them are protected,” he said.</div>
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Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-47752639809767775512015-02-28T10:51:00.000+08:002015-02-28T20:11:03.573+08:00Non-traditional channels being tapped to distribute microinsurance<div dir="ltr" style="text-align: left;" trbidi="on">
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By <b style="margin: 0px; padding: 0px;">Raymund Luther B. Aquino</b>, <i style="margin: 0px; padding: 0px;">Reporter</i></div>
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MICROINSURANCE must be a cornerstone of the Philippines’ climate change adaptation strategy, officials said on Friday at the launch of a manifesto enjoining both public and private sectors to work toward wider microinsurance penetration.</h4>
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The call went out at even as the Philippines leads the region in terms of microinsurance penetration -- with pawnshops in particular driving growth, according to regulators.<br />
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In an event called “Challenging the Climate, Responding to Change” at the Philippine International Convention Center Friday, Department of Finance (DoF) Undersecretary Gil S. Beltran highlighted the need to be “creative and innovative” in the face of climate change-related risks.<br />
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Mr. Beltran pointed to microinsurance’s contribution to the rebuilding of communities following super-typhoon Yolanda’s (International Name: Haiyan) devastation of parts of central Philippines in November 2013, with more than P700 million in payoffs logged by microinsurance providers as a result of the disaster.<br />
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But even with the end-2013 figure of 27.9 million Filipinos covered by a microinsurance policy -- at almost 28% penetration of the population, the highest in Asia and Oceania, Mr. Beltran noted -- the “majority [of Filipinos] still have not bought or even have not heard such a thing.”<br />
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This is a cause for concern since “76.6% of our land area is considered hazard prone, and 83.5% of our population is exposed to life-threatening risks brought by climate change,” Mr. Beltran said.<br />
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Joselito S. Almario, deputy executive director at DoF arm National Credit Council, read out the microinsurance manifesto to the audience before its signing. Among the signatories of the manifesto present at the event were Mr. Beltran, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla, Jr., and Securities and Exchange Commission (SEC) Chairperson Teresita J. Herbosa, as well as other state officials, insurance industry representatives, and delegations from the German and Japanese embassies.<br />
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“We believe in the important role of microinsurance for climate change adaptation,” Mr. Almario said, reading the manifesto. “Microinsurance will not stop typhoons, will not stop flooding, it will not even stop death or injuries... It is not a tool for mitigation. It is a tool for adaptation.”<br />
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Among the manifesto’s main points are: for the government to provide an enabling and conducive policy and regulatory environment for microinsurance; for microinsurance players to develop, design and create simple, affordable and innovative microinsurance products and services; and for donors, multilateral institutions and the international community to provide technical and other forms of assistance to those concerned.<br />
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At the press conference following the launch of the manifesto, the BSP’s Mr. Espenilla noted that the banking sector is also being primed for the growth of microinsurance.<br />
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“We have actually already adopted very liberalized rules for our banks to distribute microinsurance products,” Mr. Espenilla noted. The central bank has for more than a decade now been taking steps to liberalize rules on the banking system’s engagement with the insurance industry.<br />
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In August, the BSP issued Circular 844, which relaxed rules on the cross-selling of simple -- i.e., non-investment-linked -- insurance products. Under the relaxed rules, simple insurance products are now allowed to be “cross-sold” inside bank premises regardless of whether the insurance provider is part of the same financial conglomerate as the bank or not.<br />
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“Based on the most recent data, more than 40 banks have been allowed to distribute microinsurance. More than that, we have more than 80 banks in the pipeline waiting to be accredited to distribute microinsurance... The target here really are the smaller banks,” Mr. Espenilla said at the press conference. These banks are “mostly located in the provinces.”<br />
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But the major growth driver of microinsurance has proven to be non-bank distribution channels, like pawnshops.<br />
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“Pawnshops are under the regulation of the BSP, and the BSP has also enabled pawnshops to distribute insurance products in accordance with the rules of the Insurance Commission,” Mr. Espenilla said. “The reason we take that very liberalized view [of pawnshop distribution] is precisely because we are very aware that many municipalities that may be unbanked is actually well served by our pawnshops.”<br />
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“The penetration rate of pawnshops is much deeper than our banks,” Mr. Espenilla said. “Today, for example, there are more than 17,000 pawnshops all over the country.”<br />
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However, local insurers are now starting to look even beyond the ubiquitous pawnshop.<br />
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Philippine Insurers and Reinsurers Association Chairman Michael F. Rellosa shared: “One of our members companies is now dealing with the distributors of fertilizer. We discovered that that’s another possible channel of distribution of microinsurance.”</div>
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Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-50229308948071502422015-02-21T16:35:00.001+08:002015-02-21T16:39:50.677+08:00How Microinsurance Works<div dir="ltr" style="text-align: left;" trbidi="on">
<iframe allowfullscreen="" frameborder="0" height="270" src="https://www.youtube.com/embed/KdJkBjTeq-E" width="480"></iframe></div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-83816365398460049662015-02-19T22:58:00.000+08:002015-02-21T17:09:21.265+08:00Low-income Filipinos can rely on microinsurance when disaster strikes<div dir="ltr" style="text-align: left;" trbidi="on">
Manila Times<br />
February 18, 2015 8:42 pm<br />
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THE domestic insurance industry posted a stellar growth performance in the past year, registering an estimated 28 million Filipinos protected by microinsurance.<br />
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Microinsurance has proven to be a great tool in promoting affordable security in the Philippines with its significant contribution to the increase in insurance penetration, which hit 28 percent, one of the highest rates in the Asian region.<br />
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The recent calamities that shook the country highlighted the importance of having insurance protection, especially for the poor who are the most vulnerable. When Super Typhoon Yolanda struck the country in November 2013, over half a billion pesos in microinsurance claims were settled and given as benefits to families to cover calamity assistance for damaged crops, hospitalization and death.<br />
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Now that its wide-ranging impact is known, microinsurance is currently seen as an important component of risk management, complementing the government’s disaster prevention and rehabilitation program.<br />
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To support the industry’s growth, providers are encouraged to look into designing more products that will provide comprehensive coverage to the lives and livelihood of low-income people. One example of this is crop insurance offered by public insurance agencies in partnership with private providers.<br />
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There is a need to develop such products to cushion the effects on the low-income segment whose livelihoods and income sources are threatened when calamities strike. When such losses occur, the ability of an individual to bounce back from a calamity is severely affected, thus also affecting the productivity of their segment in the broader economy.<br />
<br />
Delivery channels like the rural banks, cooperatives and other microfinance institutions should respond to these needs by providing access to a product that will provide security over losses at an affordable rate. Support and development institutions like industry associations, donors and other development-oriented agencies, on the other hand, should do their part by providing assistance in building the capabilities of various delivery channels to provide quality microinsurance services to the low-income sector.<br />
<br />
For its part, the Rural Bankers Association of the Philippines is continuously providing training and licensing and other forms of technical assistance to its member banks. To date, a total of 223 rural banks and over 500 staff have already undergone microinsurance training provided by the RBAP’s training arm, the Rural Bankers Research and Development Association.<br />
<br />
Bank staff who completed the course are qualified to act as their institution’s soliciting agent, which is part of the program to empower institutions as access points for clients to avail of microinsurance.<br />
<br />
With continuous partnership between the private and the public sector, microinsurance will soon emerge to be a vital component of disaster risk management, benefiting more Filipino lives in the coming years.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-49493526301618249772015-02-14T14:30:00.000+08:002015-02-14T14:30:34.113+08:00PH Microinsurance: Challenging the Climate, Responding to Change<div dir="ltr" style="text-align: left;" trbidi="on">
Watch how Microinsurance in the Philippines helped the victims of Typhoon Haiyan (Yolanda). <a href="https://www.youtube.com/watch?v=MjICODBAudE&feature=youtu.be">https://www.youtube.com/watch?v=MjICODBAudE&feature=youtu.be</a></div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-2421495702935966242015-01-26T20:07:00.001+08:002015-01-26T20:07:25.107+08:0032M Filipinos have insurance<div dir="ltr" style="text-align: left;" trbidi="on">
Manila Standard Today<br />
By Jennifer Ambanta | Jan. 23, 2015 at 11:40pm<br />
<br />
One in every three Filipinos is now covered by insurance, following the growth of the micro-insurance industry, the Insurance Commission said Friday.<br />
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"About 32 million Filipinos are now insured, not including those under the Social Security System and the Government Service Insurance System," Insurance Commissioner Emmanuel Dooc said at the sidelines of the 66th anniversary of the agency.<br />
<br />
Dooc said a large part of the insured population was serviced by the micro-insurance industry with 28 million individuals.<br />
<br />
"As of end-2014 micro insurance have reached 28 million Filipinos," Dooc said.<br />
<br />
He said his personal target was to increase the insurance penetration rate in the country to 50 percent, involving 50 million Filipinos, by the end of his term in 2019.<br />
<br />
"Before my term ends in 2019, I hope we reach out to that much people," he said.<br />
<br />
Dooc said the goal of the Insurance Commission was to bring financial inclusion to more Filipinos, especially those in remote parts of the country.<br />
<br />
The insurance industry ended the third quarter of 2014 with total assets of P1.043 trillion and total premiums of P132 billion.<br />
<br />
Total investments reached P800 billion, half of which were placed in government securities while total benefits amounted to P52.3 billion.<br />
<br />
Dooc said the insurance industry was fast becoming a pillar of the economy as it expanded over the past five years.<br />
<br />
"Despite mergers and consolidation as a result of capital buildup and strict implementation of law, the industry continues to thrive," he said.<br />
<br />
Data showed that from an all-time high of 130 insurance companies, the total number of industry players dropped to 99 this year.<br />
<br />
The Insurance Commission said earlier it expected mergers and consolidation to continue in the coming years, because of the Association of Southeast Asian Economic Integration.<br />
<br />
The Insurance Commission celebrated its 66th anniversary on Friday, with theme "Alleviating Poverty Through Inclusive Insurance Protection.”</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-23628205516950110512014-12-08T15:12:00.001+08:002014-12-08T15:12:10.378+08:00EIU names Phl number 1 in microfinance in Asia<div dir="ltr" style="text-align: left;" trbidi="on">
By Ted P. Torres (The Philippine Star) |<br />
Updated December 8, 2014 - 12:00am<br />
<br />
MANILA, Philippines - The Economist Intelligence Unit (EIU) has ranked the Philippines as microfinance leader in Asia, and third best globally in a study that covered 55 countries.<br />
<br />
Global microfinance leader is Peru, followed by Colombia. In fourth is Chile and fifth is India (second best in Asia).<br />
<br />
The Philippines was second best in 2010, and number one globally in 2009, the first time the report was conducted.<br />
<br />
The EIU report also noted the Philippines was ranked among the leaders in the regulation and promotion of micro-insurance. The other nations mentioned were Colombia, India and Mexico.<br />
<br />
The strength of the top three, according to the report, lies in the presence of a financial-inclusion strategy.<br />
<br />
“The Philippine government’s multi-year development plan includes a financial-inclusion strategy with specific commitments, many of which have been implemented, including financial-education initiatives,” EIU said.<br />
<br />
The report noted that one of the key strengths of the Philippines is that the Bangko Sentral ng Pilipinas (BSP) is the first monetary regulator to form a body specifically for financial inclusiveness. The National Strategy for Microfinance, formed in 1997, preceded the Inclusive Finance Advocacy Staff.<br />
<br />
In close cooperation with other agencies, the BSP also encourages a strategy that offers micro-insurance regulations to facilitate the provision of life, health and other insurance products to low-income populations.<br />
<br />
However, the report expressed concern that most of the providers of micro-credit and microinsurance are situated in populous and urbanized areas. Only 26.6 percent of the adult population had deposit accounts, majority of which are also in urbanized areas.<br />
<br />
Other major challenges highlighted by the report include the weak and fragile delivery and implementation.<br />
<br />
Another stumbling block is the country’s archipelagic situation made up of more than 7,000 islands, where huge financial, security and logistical challenges exist in reaching the poor and unbanked.<br />
<br />
The EIU said that in the country’s largest province, Mindanao, coverage for microfinance is negligible. Non-regulated financial institutions, namely, co- operatives, are not well supervised and engage in deceptive practices and charge high interest rates. Over-indebtedness is also an issue with multiple financing,<br />
<br />
“Financial literacy continues to be a problem, as many Filipinos do not understand or value the importance of savings,” the report added.<br />
<br />
The EIU is an independent business within The Economist Group providing forecasting and advisory services through research and analysis, such as monthly country reports, five-year country economic forecasts, country risk service reports, and industry reports. The group also publishes the prestigious The Economist, a business journal.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-75705696227126877422014-11-25T22:40:00.000+08:002014-11-25T22:40:13.995+08:00Phl leads East Asia in microinsurance<div dir="ltr" style="text-align: left;" trbidi="on">
By Ted P. Torres<br />
The Philippine Star<br />
Updated November 25, 2014<br />
<br />
MANILA, Philippines - Roughly 27.96 million Filipinos had microinsurance coverage in 2013, among the highest in the East Asian region, according to the Insurance Commission (IC).<br />
<br />
Likewise, the penetration ratio (as a percentage of population) rose from 7.22 percent in 2009 to 28.62 percent last year.<br />
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The Philippines had the highest microinsurance penetration ratio and the second highest penetration, based on a 2013 study commissioned by the Munich Re Foundation.<br />
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The Philippines recorded a 20.6-percent penetration ratio or the highest among the top 10 nations covered by the study.<br />
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It was followed by the 13.9 percent in Thailand, nine percent for India, 6.1 percent for Bangladesh, and 3.7 percent for Malaysia. The rest of the countries based on ranking are Pakistan, Cambodia, East Timor, Jordan and Nepal.<br />
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In terms of penetration, India was tops with 111.1 million with microinsurance policies followed by the Philippines with 19.9 million policies.<br />
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China came in third with 11.9 million, Bangladesh with 9.4 million, and Thailand with 9.3 million. The rest of the field are: Pakistan, Indonesia, Malaysia, Nepal and Cambodia.<br />
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Before 2010, mutual benefit associations (MBAs), with a few exceptions among the larger life insurers, sold the low-cost informal insurance products.<br />
<br />
But the government’s microinsurance program, with all its regulatory and actuarial improvements, changed all that.<br />
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At the start of 2013, there were 80 microinsurance products – 54 are classified as life products and 26 as non-life products – approved by the IC.<br />
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Offering microinsurance products are 19 insurance companies and 17 MBAs with approved microinsurance products.<br />
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In fact, 14 of the 17 MBAs are focused solely on IC-approved microinsurance products. About two million MBA members have microinsurance products.<br />
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Already, the program benefited more than 95,000 clients/beneficiaries, with payments reaching P1.87 billion in death and disability benefits.<br />
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IC commissioner Emmanuel F. Dooc said that the numbers are expected to be greater this year, with the increase in the number of participants coming the private sector.<br />
<br />
Dooc said that the rapid entry of financial but non-insurance institutions, such Cebuana Lhuillier, in the microinsurance environment would dramatically increase the number of individual coverage.<br />
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‘They have one of the largest distribution networks today,” he added.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-32972977836552240562014-11-22T20:36:00.000+08:002014-11-22T20:36:00.326+08:00Philippines ranks 3rd in global EIU financial inclusion ranking<div dir="ltr" style="text-align: left;" trbidi="on">
Business, Manila Bulleting<br />
Lee C. Chipongian<br />
November 13, 2014<br />
<br />
The Philippines is one of the top three countries in the world that have the most effective financial inclusion programs, based on the “Global Microscope 2014” index of the Economist Intelligence Unit (EIU) which assessed the “enabling environment” of 55 countries.<br />
<br />
It is an improvement from the 2013’s ranking which listed the country as fourth in the world.<br />
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“Peru, Colombia and the Philippines demonstrate the most conducive environments for financial inclusion,” the report said. The Philippines improved its score to 79 (out of 100) from last year’s 67.9, trailing behind to Peru’s 87 and Colombia’s 85.<br />
<br />
EIU highlighted the Philippines’ leadership in the micro-insurance regulation and the government’s committed and documented financial-inclusion strategy or programs. “The Philippines government’s multi-year development plan includes a financial-inclusion strategy with specific commitments, many of which have been implemented, including financial-education initiatives,” said EIU.<br />
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The report also discussed the country’s challenges to ensure long-term success such as in implementation. “While the Philippines is at the forefront of promoting and creating an enabling environment for financial inclusion, some sector experts believe that delivery and implementation are weak.”<br />
<br />
The fragmented economic sectors are a significant financial, security and logistical challenges, in a country of 7,000 islands. The EIU said the concentration of microfinance institutions (MFIs) in urban and semi-urban areas with larger populations leads to banks charging higher interest rates on loans. “Non-regulated financial institutions, namely, co-operatives, are not well supervised and engage in deceptive practices and charge high interest rates.”<br />
<br />
There are also areas that MFIs are too few and scarce, specifically in Mindanao where EIU said coverage for microfinance is “negligible.” The report also pointed out the multiple financing problems or over-indebtedness, however they also acknowledged efforts to improve on this with the establishment of a credit data bureau or the Credit Information Corp. which should be in place by the end of this year. The Credit Information System Act was legislated in 2008.<br />
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“Lastly, financial literacy continues to be a problem, as many Filipinos do not understand or value the importance of savings,” said EIU. The report cited a World Bank data that only 26.6 percent of the adult population has a deposit account.<br />
<br />
The EIU said the Bangko Sentral ng Pilipinas’ (BSP) efforts to improve and promote financial literacy as part of its financial inclusion agenda have gained traction over the years.<br />
<br />
It noted that the BSP was the first central bank in the world to have an “Inclusive Finance Advocacy Staff” for financial inclusion.<br />
<br />
“The BSP continues to promote an enabling environment for financial inclusion through the issuance of various regulations and circulars, which seek to encourage new entrants of financial-services providers and products that serve the poor, while also ensuring the safe provision of such services,” said EIU.<br />
<br />
In May this year, the central bank approved a stronger consumer protection framework which includes a separate system that will be implemented by 2016.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-32821105390659633682014-11-22T13:22:00.000+08:002014-11-22T13:22:08.728+08:00<div dir="ltr" style="text-align: left;" trbidi="on">
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<h2 style="text-align: center;">
<span style="background-color: lime;">PHILIPPINE MICROHEALTH LOGO</span></h2>
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Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-48271718652383329842014-11-22T10:33:00.001+08:002014-11-22T13:56:05.446+08:00Gov’t. body seeks public views on health insurance<div dir="ltr" style="text-align: left;" trbidi="on">
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<br />
Sunstar<br />
November 21, 2014<br />
<br />
THE government’s Technical Working Group (TWG) on MicroHealth yesterday conducted the first of its series of public consultations on the Health Microinsurance (HMI) Framework, which will cover all people, most especially the poorest among the poor.<br />
<br />
Joselito S. Almario, deputy executive director of the Department of Finance-National Credit Council(DOF-NCC), said the proposed HMI framework is intended to encourage private sector support to the Universal Health Care (UHC) outlined in the Philippine Development Plan (PDP 2011-2016), which safeguards equitable access to health care for all Filipinos, particularly the poor.<br />
<br />
Almario, the TWG chairman, said the PDP envisions a National Health Insurance Program (NHIP) that encourages public-private partnerships (PPP) to respond to the current gaps in healthcare risk protection in the country.<br />
<br />
The joint press release distributed during the press conference that followed after the morning session stated that the private sector under the proposed Microhealth Framework is expected to complement and supplement Philhealth’s social health insurance packages especially for the low income and informal sectors.<br />
<br />
Stats<br />
<br />
Although 82 percent of the 100 million Filipinos have some form of health coverage, the gap remains wide for healthcare financial risk protection, particularly to the most vulnerable low-income sectors.<br />
<br />
Philhealth Chief Social Insurance Officer Maria Cristina C. Ramos said Philhealth provides basic health care packages, but has not covered medical transport, drugs and medical supplies.<br />
<br />
Ramos said that with microinsurance, they hope all Filipinos, rich and poor, will be covered.<br />
<br />
Almario said microinsurance offers a maximum benefit of P500,000 for a maximum coverage of P40.<br />
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The consultations aim to draw together views, concerns and support of public and private providers and practitioners in health and insurance sectors on the draft framework.<br />
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The TWG on MicroHealth is composed of IC, DOF-NCC, Philhealth, Department of Health (DOH), the insurance industry and the Association of Health Maintenance Organization in the Philippines (AHMOPI), with the support from German Development Cooperation (GIZ).<br />
<br />
Support<br />
<br />
The GIZ, through its regional program on microinsurance, the Regulatory Framework Promotion on Pro-poor Insurance Markets in Asia (GIZ-RFPI), is providing technical and financial support.<br />
<br />
Almario said microinsurance responds to the financial risk protection needs of the low-income and informal sectors. While the products have affordable premiums, the benefits that correspond to the risks and claims settlement is fast.<br />
<br />
Ferrer said the MicroHealth framework is envisioned to augment the UHC program through a viable and sustainable private sector microinsurance industry.<br />
<br />
Ferrer said Microhealth is expected to provide every Filipino greater coverage and wider access to simple, affordable, appropriate and effective health microinsurance products and services.<br />
<br />
Source: Sunstar<br />
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Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-81457642283766724762014-09-09T21:54:00.004+08:002014-09-09T21:54:50.828+08:00Micro-insurance gaining popularity in PH – Fitch<div dir="ltr" style="text-align: left;" trbidi="on">
Manila Times<br />
February 11, 2014 8:42 pm<br />
by MAYVELIN U. CARABALLO<br />
REPORTER<br />
<br />
<br />
Micro-insurance is gradually gaining its popularity in the Philippines particularly in the poorest segment of the population, Fitch Ratings said recently.<br />
<br />
In its special report “Philippine Insurers Show Ample Growth Potential, Face Changes,” the ratings agency noted that the Philippines continues to be plagued by poverty, with poverty incidences averaging at least 20 percent per year (2009 to 2012), and worse in times of disaster.<br />
<br />
“This has led to a gradual increase in the popularity of micro-insurance—as it raises insurance awareness while keeping it affordable for the lower classes,” it said.<br />
<br />
Meanwhile, Fitch lauded the Philippine government in creating various measures in regulating and promoting the expansion of micro-insurance in the country.<br />
“The Philippines government has put in a tremendous effort to promote micro-insurance,” it said.<br />
<br />
The agency cited that these measures include the establishment of micro-insurance websites and social media tools; the issuance of micro-insurance framework and simple prototype life/nonlife contracts; and the additional permits issued for insurers, and microfinance institutions (MFI) to enter the market.<br />
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Fitch said that these efforts have led to double-digit growth in the number of Filipinos with micro-insurance coverage. Based on the data from Insurance Commission, the ratings agency said that from 6.6 million in 2010, there were now 12.9 million Filipinos covered by micro-insurance by end-2012.<br />
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“The demand for and awareness of micro-insurance is still growing, and Fitch believes that continuous government support will continue to play a vital role in penetrating the lower-income classes,” Fitch added.<br />
<br />
On the other hand, the ratings agency noted that despite being the 12th most densely populated nation with over 97 million people, the Philippine insurance industry remains heavily underpenetrated compared with its regional peers.<br />
<br />
Fitch attributed the problem to the fact that the public does not fully appreciate the benefits of insurance, together with issues of insurance affordability for the low-income population.<br />
<br />
However, with the improved economic conditions that boosted Filipinos’ standard of living and led to rising urbanization trend, the agency is positive on the expansion of the insurance industry in the coming years.<br />
<br />
“Rising levels of income and financial literacy have led to a gradual rising urbanization trend in the last five years,” it said.<br />
<br />
Fitch noted that the average urbanization rate in the country stood at 65 percent, marginally lower than the world’s 69 percent.<br />
<br />
“Fitch takes a positive view on the growing urbanized trend, as this will drive higher demand for wealth accumulation and health protection products—and in turn, propel higher premium growth,” it said.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-20351207696946862152014-08-19T16:12:00.001+08:002014-08-19T16:12:31.491+08:00Developing microinsurance: The path taken<div dir="ltr" style="text-align: left;" trbidi="on">
Business Mirror<br />
Opinion<span class="Apple-tab-span" style="white-space: pre;"> </span><br />
12 Aug 2014 <br />
The Technical Services Group of the Insurance Commission<br />
<br />
THE Insurance Commission (IC) has taken great strides toward the promotion of microinsurance in the country, considering the initiatives and strategies undertaken over the years.<br />
<br />
The most important of these initiatives is the crafting and issuance of the Regulatory Framework for Microinsurance, as embodied in Insurance Memorandum Circular (IMC) 1-2010. In this document, the IC defined the parameters for a microinsurance product in terms of the amount of daily premiums and face amount. But with the enactment of the New Insurance Code, the maximum amount of daily premiums and the maximum sum of guaranteed benefits of a microinsurance product have been pegged at 7.5 percent of and 1,000 times the current daily minimum-wage rate for non-agricultural workers in Metro Manila, respectively.<br />
<br />
Another significant stride toward the promotion of microinsurance was making it more accessible to the public. Again, this was done through IMC 1-2010, in which accredited life and nonlife insurers, cooperative insurance societies, and mutual-benefit associations were allowed to issue IC-approved microinsurance products.<br />
<br />
Moreover, to encourage their increased participation in providing microinsurance products, the IC approved new distribution channels—categorized as microinsurance agents and microinsurance brokers—which can be availed of by interested individuals and groups, including rural banks, microfinance institutions, non-governmental organizations and cooperatives, and prescribed lower capitalization requirements or a guaranty fund for microinsurance providers.<br />
<br />
Likewise, it expanded the set of admitted assets to include premiums collected from the sale of microinsurance products, and even relaxed licensing requirements for agents solely engaged in the solicitation of microinsurance business.<br />
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In terms of customer protection, regulations were issued to ensure these microinsurance providers’ financial solvency at all times, so that they shall have the liquidity to fulfill their obligations to their insureds or members as they fall due.<br />
<br />
Thus, the IC, together with the Securities and Exchange Commission and the Cooperative Development Authority, issued a joint memorandum circular requiring all entities engaged in informal insurance activities to formalize their operations, either by obtaining a license from the IC or by partnering with a licensed microinsurance provider. This way, the premiums and contributions of the insureds or members are safeguarded through the regulatory policies, in particular, through the circular on performance standards.<br />
<br />
This circular prescribes a set of benchmarks or indicators that shall be used in evaluating the microinsurance operations of licensed providers, so as to ensure their stability and capability to continue offering microinsurance products and services. The performance indicators cover such areas as solvency and stability, efficiency, governance, understanding of the product, risk-based capital and outreach. Serving as an early warning system, the IC, through these indicators, can identify entities with specific concerns on the financial condition of their microinsurance operations as early as possible.<br />
<br />
Also of great importance is the circular issued for the protection of microinsurance policyholders, the one on the Alternative Dispute Resolution Mechanism. Through the guidelines set out in this circular, claims disputes or complaints related to microinsurance contracts may be settled expeditiously and at less cost to policyholders.<br />
<br />
The last of these activities—and this could be the most extensive that was undertaken to promote microinsurance—was the institutionalization of financial literacy. Following the creation of a document called the Road Map to Financial Literacy on Microinsurance, which detailed the campaign strategies directed toward microinsurance stakeholders,<br />
a series of advocacy seminars and trainings, as well as news conferences, were conducted in 17 key regional centers of the country.<br />
<br />
Support from collaborators<br />
<br />
THE IC recognizes the fact that, by itself, it could not have achieved the feats stated above.<br />
<br />
The Department of Finance-the National Credit Council, other government agencies, our private partners, industry associations and academe all selflessly shared their time, expertise and resources to help develop and promote our microinsurance advocacy.<br />
<br />
Lending even more extensive support are two multilateral agencies that literally acted as the wind beneath IC’s wings, promoting our microinsurance program as a model for financial-inclusivity efforts not only in Asia, but also in many parts of the world.<br />
<br />
The IC is most grateful to these two organizations, the Asian Development Bank (ADB) and the German Technical Cooperation (GTZ), for their wholehearted support for our microinsurance program, making it possible for millions of Filipinos to understand the value of, and have access to, insurance cover against life’s harsh blows.<br />
<br />
That we now have about 20 million Filipinos from the low-income sector enjoying the benefits of microinsurance is a testament to the greatness that can be achieved when worthy projects are pushed by people and entities sharing a common vision and goal.<br />
<br />
Presently, both the ADB and GTZ have ongoing projects with the IC for the continuous development of microinsurance and related endeavors.<br />
<br />
With these collaborations, the goodness continues.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com1tag:blogger.com,1999:blog-5112579887471415280.post-28918972828154518462014-08-06T08:55:00.000+08:002014-08-06T08:55:33.673+08:00IC to issue new circular revising the SCA for MBAs<div dir="ltr" style="text-align: left;" trbidi="on">
Opinion, Business Mirror<br />
05 Aug 2014 <br />
Written by Bernandino B. Camba<br />
<br />
NOT too many people know that the mutual-benefit association (MBA) industry has always been under the regulatory supervision of the Insurance Commission (IC). What the savings-and-loans company is to the Bangko Sentral ng Pilipinas, the MBA is to the IC.<br />
<br />
As a key stakeholder in the country’s national strategy for the development of microinsurance, MBAs are key in providing every Filipino with equal access to insurance. In contrast to regular insurance companies, MBAs are nonstock and nonprofit organizations that offer social, economic and/or educational programs for their members (and their families) to ensure the protection and development of the same. Accordingly, the IC recognizes the role that MBAs have in the government’s program for inclusive growth and development and, thus, provides the necessary regulation to help them grow and stay stable.<br />
<br />
In 2006 the IC issued IC Circular Letter 33-2006, which revised the old Standard Chart of Accounts (SCA) for life-insurance companies, and introduced a Uniform Chart of Accounts for both life-insurance companies and MBAs. This circular lists the uniform account titles to be used by an MBA in recording similar transactions. Each account’s nature described adopted the latest International Financial Reporting Standards (IFRS)/Philippine Financial Reporting Standards (PFRS) rulings and issuances.<br />
<br />
The issuance of the circular formalized the accounting review processes for MBAs. This reduced queries and complaints from MBAs during the audit period and standardized account-reporting.<br />
<br />
However, with the updates and changes in the IFRS and PFRS in the last eight years, it is again necessary to review and revise the SCA, align it with the latest IFRS rules, and differentiate the account titles for for-profit and not-for-profit organizations. The proposed issuance of the IC circular for the new SCA is one way to ensure that the differences between regular insurance companies and nonprofit organizations are recognized.<br />
<br />
There are three major changes:<br />
<br />
1) Accounting for fund balances is now unique for an insurance company and an MBA. For example, before, “retained earnings” were used to describe accumulated earnings for MBAs. Now the term “fund balance” is used.<br />
<br />
2) “Legal policy reserves” required for insurance companies are now classified into two accounts for MBAs: “Liability on individual equity value,” which represents the total amount of obligations set up by the MBA on membership certificates pertaining to the 50-percent equity value; and “Basic contingent benefit reserves,” which represents the total actuarial reserves set up by the MBA pertaining to the basic life benefit that is in force at the end of the accounting period.<br />
<br />
3) In the Assets Section for MBAs, several accounts were also added. These include the Unremitted Member’s Contributions, Dues and Fees account for the unremitted collections on membership fees at the end of the period, and the Unremitted Premiums account for the unremitted collections on all optional policies at the end of the period.<br />
<br />
The IC, with the help of the Department of Finance, the MBAs and funding from the Asian Development Bank, has already finished its consultations with various industry stakeholders and, as of last week, conducted its seminar for IC examiners and other employees. The next step is to organize seminars in Luzon, the Visayas and Mindanao for the MBAs to be familiar with the proposed new SCA for MBAs in time for the IC circular’s official publication.<br />
<br />
With the completion of the nationwide seminars for MBAs, the IC expects that it will improve financial-data collection, reporting, accuracy and comparability across the industry, and will also provide full disclosure of its financial standing and position to its members and other regulators.<br />
<br />
*****<br />
<br />
Bernardino B. Camba is a member of the Financial Examination Group of the Insurance Commission.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-43033354553556040222014-07-28T09:42:00.000+08:002014-07-28T09:42:24.646+08:00Rural banks to serve more Filipinos with increased microinsurance benefits<div dir="ltr" style="text-align: left;" trbidi="on">
Manila Times<br />
July 23, 2014 9:57 pm<br />
<br />
<br />
The havoc created by Typhoon Yolanda in the Visayas late last year underlines the value of having security against unexpected hazards. Fortunately, the realization has snowballed into the implementation of measures that seek to increase the coverage of microinsurance.<br />
<br />
Under the new Insurance Code, benefits that may be derived from a microinsurance policy have been raised to up to 1,000 times the minimum daily wage of non-agricultural workers in Metro Manila or up to P466,000. Premium, meanwhile, is now computed at 7.5 percent of the same daily wage.<br />
<br />
The Bangko Sentral ng Pilipinas likewise issued BSP Circular 841 to reflect the change in the maximum amount of premiums and benefits in the manual of regulations for banks.<br />
<br />
The increase in the cap of microinsurance benefits expands protection while ensuring that products remain affordable to the low-income sector. To illustrate one of its benefits, a microinsurance credit life product may now be linked to a client’s loan amounting to P300,000. In case of death of the client, the family will not be burdened with the payment of the loan balance.<br />
<br />
The same can be said of a microinsurance product linked with a bank’s micro-deposit account. To encourage clients to save more, a microinsurance policy is tied up to the client’s savings account and the amount of insurance benefit may be computed based on the average daily balance of the deposit.<br />
<br />
Noteworthy at this point are previous BSP issuances increasing the amount of loan to microenterprises and small businesses through Microfinance Plus and the average daily balance of microfinance savings account from P15,000 to P40,000.<br />
<br />
To increase insurance coverage in the country and to provide the low-income sector access to insurance products, rural banks have been allowed by regulators to market and sell microinsurance products to their clients.<br />
<br />
Strategically located nationwide, rural banks are seen as effective distribution points in providing protection to the most vulnerable sector of the society. In fact, rural banks with offices and branches in provinces hit by Yolanda contributed to the relief efforts in the aftermath of the deadly typhoon.<br />
<br />
Industry reports show that by end of 2013, there were 40 rural and cooperative banks licensed as microinsurance agents, serving about 1.3 million Filipinos with active microinsurance policies.<br />
<br />
Microinsurance is seen as vital in providing protection in the agriculture sector where farmers and fisherfolk are most vulnerable to natural calamities.<br />
<br />
An average of 20 typhoons hit the Philippines annually and experts predict stronger typhoons as a result of climate change. When Yolanda struck the country last year, it incurred $13 billion in economic losses but only $1.5 billion insurance losses due to the fact that the areas hit by the typhoon had very low insurance penetration. With measures such as the increase in benefits, we can expect that microinsurance will gain ground even more.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-26717236267537808012014-07-18T10:28:00.001+08:002014-07-18T10:33:37.783+08:00Typhoon Rammusan skipped Manila; insurance loss low<div dir="ltr" style="text-align: left;" trbidi="on">
Source: AIR eDaily | 18 Jul 2014<br />
<br />
Typhoon Rammasun which made landfall in the central Philippine province of Sorsogon on Tuesday and was seen as heading towards Manila, later shifted away from the capital towards China. Insurance losses are not expected to be significant.<br />
<br />
US-headquartered catastrophe modelling firm AIR Worldwide noted that, “although smaller and much less intense than deadly and highly destructive Super Typhoon Haiyan - which devastated parts of the Philippines in November 2013 -Typhoon Rammasun nonetheless prompted sizeable evacuations and resulted in some disruption of transportation, as well as school and office closings. Widespread damage is not expected, but some areas could experience storm surge flooding, flash flooding, and/or mud slides, as well as wind damage.”<br />
<br />
More than 423,000 fled to emergency shelters, according to the National Disaster Risk Reduction and Management Council. Rammasun caused at least 20 deaths compared to more than 6,300 in the case of Haiyan. Many areas lost power and telephone connections.<br />
<br />
In an alert posted at Rammusan's landfall in the Philippines, AIR said that “typhoon and flood damage are usually covered together in the Philippines and are given under separate fire policies with named perils extensions. Insurance penetration varies by region. Typhoon Rammasun will affect some densely populated and urban areas, including Manila, where insurance penetration for residential lines would be around 5-10%, 25-30% for commercial/industrial. Still, given that insurance penetration in this area is around 10% to 20%, insured losses are not expected to be significant as a result of this typhoon.”<br />
<br />
In a post-landfall report, AIR noted that Rammusan weakened as it crossed Luzon and passed to the south of Manila.There have been no reports of major flooding to the Metro Manila area.<br />
<br />
Rammasun is the seventh typhoon to lash the Philippines this year. About 20 typhoons and storms hit the Philippines each year, making it one of the world’s most disaster-prone countries</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-83067107084993864202014-06-21T08:49:00.002+08:002014-06-21T08:49:54.875+08:00Microfinance borrowers raise size of loans to P8,000 average<div dir="ltr" style="text-align: left;" trbidi="on">
Manila Bulletin<br />
by Lee C. Chipongian<br />
June 18, 2014<br />
<br />
The country’s microfinance sector on average release about P8,000 per borrower, a gradual increase compared to P6,150 per borrower seven years ago.<br />
<br />
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. assures that the microfinance sector remains on an upward trend, with P8.1 billion total microfinance loans released to 1,017,351 local borrowers as of end of the third quarter 2013.<br />
<br />
“The microfinance sector continues to grow and empower more microentrepreneurs,” said Tetangco during yesterday’s 2013 Citi Microentrepreneurship Awardees event, with the Microfinance Council of the Philippines.<br />
<br />
“In other words, bank loans to microenterprises increased by 102 percent in seven years, while the number of microentrepreneurs who accessed micro loans from banks increased by 56 percent,” he noted. Over the same period, average micro loans increased by 30 percent as well.<br />
<br />
Tetangco remarked that in 2013, the accumulated bank savings of microentrepreneurs totaled P8.8 billion, about 525 percent more from P1.4 billion in 2006. This means the average deposit per microentrepreneur increased from P2,000 in 2006 to P8,650 in 2013, an increase of 332 percent in seven years.<br />
<br />
“We realize these are cold figures. However, the stories behind these figures prove the power of microfinance to transform and improve lives,” said Tetangco.<br />
<br />
Tetangco said the BSP continues to improve the regulatory environment for banks with microfinance operations. The most significant of these policy changes are the increase in the the average daily balance of microdeposits, microinsurance now cover families of microfinance clients and improved procedures in the product approval of housing microfinance loans and micro-agri loans.<br />
<br />
Earlier this month the BSP also approved revisions to the way banks report microfinance and microenterprises loans to improve data capture. These should improve the quality of data reported by banks which would “serve as inputs in formulating policies to further enhance the present regulatory environment in support of MSME (micro, small and medium enterprises) lending.”<br />
<br />
There are 186 banks offering microfinance services and products. Filipinos’ access to microcredit, said Tetangco, is the first step to gaining financial independence.<br />
<br />
The BSP still face the challenge of financial inclusion especially since only 20 percent of Philippine households have bank accounts out of a population of 100 million.</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-79403374560069196052014-06-01T11:39:00.000+08:002014-06-01T11:39:33.624+08:00Philippines in top five of insurance coverage<div dir="ltr" style="text-align: left;" trbidi="on">
Mindanao Daily Mirror<br />
https://www.facebook.com/MinDailyMirror<br />
Posted May 29, 2014<br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
”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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
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.<br />
<br />
AYAN C. MELLEJOR/MDM</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-90870336846913247782014-05-01T20:43:00.001+08:002014-05-01T20:43:12.825+08:00Microcredit Impact Revisited<div dir="ltr" style="text-align: left;" trbidi="on">
Huffington Post<br />
Tilman Ehrbeck Headshot<br />
CEO, CGAP<br />
Posted: 04/29/2014 11:50 am EDT Updated: 04/29/2014 3:59 pm EDT<br />
<br />
A few years ago, a storm was raging in the microcredit world. Nobel laureate Muhammad Yunus, a pioneer of the idea behind giving small working capital loans to groups of mainly poor women based on social collateral, had promised that microcredit would end poverty and "put it in the museums." But in an influential 2010 study, a group of researchers who spearheaded the concept of randomized-controlled trials (RCTs) in development economics, found no evidence that microcredit was making poverty history. What followed was a heated debate about the impact of microcredit that occasionally flares up even today. Microcredit proponents and practitioners pointed to their experience and cited earlier research showing the benefits of microcredit. The RCT researchers dismissed that earlier work, mainly on methodological grounds.<br />
<br />
While the technical arguments might seem arcane, the underlying question of the impact of a development intervention is an important one. This is particularly true when scarce philanthropic or tax-payer money is used to subsidize the initial stage of a market development. After all, the money could be used elsewhere. So, the development community decided to gather more evidence across a broader range of settings of financial access for the poor and compare it with the best understanding of economic thinking.<br />
<br />
Some 20 RCTs later, a more nuanced picture has emerged, which supports broad financial inclusion efforts: mounting evidence shows that on the whole, access to financial intermediation helps poor families in developing countries improve their lives.<br />
<br />
To better understand the impact of financial access for poor families in the developing world, it is important to realize that they live and work in the informal economy -- not by choice, but by necessity. Traditional economic thinking distinguishes between the objectives and needs of individual households and firms. Individuals are selling their labor in the market and strive to smooth consumption over the life-cycle. When people are young, they need to invest; at the prime of their earnings power, they save; and in old-age, they spend what they have saved. On aggregate, households are net savers. Firms, on the other hand, compete for investible funds to finance their operations and growth. On aggregate, firms are net users of savings. Financial markets are supposed to make the match between savers and users and to allocate capital towards the highest productive uses.<br />
<br />
But for poor households in the informal economy, this distinction is not meaningful. In economic terms, they are consumption-smoothing households and capital-seeking small enterprises at the same time. They need a broad range of financial services -- and as the growing body of "financial diary literature" has shown, they use these services too. Without access to formal financial services, poor households have to rely on the age-old informal mechanisms such as the rotating savings club or the money-lender, which can be unreliable and very expensive.<br />
<br />
A growing body of evidence suggests that access to formal credit helps poor families with their often subsistence-enterprise activities, but its impact on broader family welfare measures is less clear. Formal savings, on which there are fewer studies to date, seem to have a more unambiguously positive impact. It helps to manage cash flow spikes and to smooth consumption, but it also helps as a mechanism to accumulate working capital with more lasting household welfare improvements.<br />
<br />
Insurance is another financial product that can help poor households mitigate risk and manage shocks. The impact studies on insurance to date have looked at agricultural insurance for smallholder farmers. Agricultural micro-insurance seems to have a strong impact on the underlying farming activity and household welfare. Studies showed that insurance made smallholder farmers switch to higher-yielding cash crops and use more land and inputs such as fertilizer. The resulting higher yields and income led to fewer missed meals and school days for their children. But these traditional insurance designs suffered from low uptake due to key barriers, such as lack of trust and liquidity constraints.<br />
<br />
Increased evidence on the impact of financial services for the poor also includes intriguing examples of improvements to local economies. For example, Banco Azteca in Mexico in 2002 rolled out over 800 new low-cost branches overnight in conjunction with a retailer. Comparing the impact of these new branches on their communities with similar ones not covered by the roll-out, researchers found increased local economic activity and higher income in the roll-out locations.<br />
<br />
Policymakers at the global and national level have increasingly embraced financial inclusion as an important soft infrastructure ingredient for social and economic progress. The G20 has made financial inclusion one pillar of its development agenda and some 50-plus countries have made explicit financial inclusion commitments. There is macroeconomic evidence to show that economies with deeper financial intermediation tend to grow faster and reduce income inequality. This explains why G20 leaders have made financial inclusion a global development priority. More recently, World Bank President Jim Kim has called for universal access to basic transaction services as a building block for economic development by 2020. The growing evidence clearly supports the underlying rationale for the efforts and aspiration of these policy makers.<br />
<br />
While the "does microfinance work" debate might continue between proponents and skeptics, the emerging bigger picture around impact is quite clear. We are seeing more and more examples of how appropriate financial services can help improve individual and household welfare and spur small enterprise activity. This broader look seems to answer the question of whether and how financial inclusion can improve the lives of the poor and will also help us to focus and sharpen our future market development efforts.<br />
<br />
Follow Tilman Ehrbeck on Twitter: www.twitter.com/@TilmanEhrbeck</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-1023340461468310822014-04-04T12:01:00.002+08:002014-04-04T12:01:46.788+08:00Insurance Commission advocates least cost in microinsurance disputes<div dir="ltr" style="text-align: left;" trbidi="on">
Philippine Information Agency<br />
BY: LEONARD T. PINEDA I<br />
Tuesday 1st of April 2014<br />
<br />
ILOILO CITY, April 1 (PIA6) --- Over a hundred stakeholders and institutional partners in Western Visayas were educated on alternative dispute resolution on microinsurance (ADReM) through a seminar held recently at the Smallville21 Hotel here.<br />
<br />
In a media release, Insurance Commission (IC) Deputy Commissioner for Financial Services Ferdinand George Florendo said that they have been going around the country presenting the latest circulars by the IC with respect to consumer protection for microinsurance clients particularly the low-income Filipinos.<br />
<br />
“The objective of the seminar was to reach out to stakeholders and institutional partners to get feedback, get information, and learn what work and what problems to be addressed,” he said.<br />
<br />
The ADReM is a mechanism devised by the Department of Finance – National Credit Council (DOF-NCC) and the IC, together with the Technical Working Group from representatives of insurance associations, stakeholders, including the German Development Cooperation (GIZ), to protect the poor.<br />
<br />
During the seminar, participants and partners from the microinsurance industry in Western Visayas were educated on the circulars issued to encourage various insurance providers to develop insurance products for the poor and expand their coverage.<br />
<br />
The seminar also emphasized the operational elements of making redress mechanism for microinsurance claims disputes through the Least-cost, Accessible, Practical, Effectively and Timely resolution of disputes (LAPET).<br />
<br />
The ADReM circulars are initiatives of the Insurance Commission and the Technical Working Group of ADReM to provide an enabling policy and regulatory environment for microinsurance, primarily for consumer protection.<br />
<br />
According to Florendo, the Philippines is being looked at as good practice for microinsurance in Asia. At present, almost 20 million Filipinos out of the 97 million populations are covered by microinsurance.<br />
<br />
Meanwhile, Dr. Antonis Malagardis, Regulatory Framework Promotion of Pro-poor Insurance Markets (RFPI-Asia) program director, said they have been working in the country for the last five years to support<br />
and facilitate the process of developing inclusive insurance with the Philippines as a priority.<br />
<br />
Malagardis also highlighted the Philippines’ achievement in the last four years with 20 percent of Filipinos covered through microinsurance compared to only three percent in 2008.<br />
<br />
“The challenge is not only to increase the coverage further but to make it sustainable in the years to come,” he added. (JCM/LTP/PIA-Iloilo)<br />
<br />
- See more at: http://news.pia.gov.ph/index.php?article=2421396329450#sthash.WNRXG7Gg.dpuf</div>
Anonymoushttp://www.blogger.com/profile/17588535900959634118noreply@blogger.com0tag:blogger.com,1999:blog-5112579887471415280.post-64041769023535569212014-04-03T22:57:00.000+08:002014-04-03T22:59:32.631+08:00Empowering Filipinos through microinsurance<div dir="ltr" style="text-align: left;" trbidi="on">
<span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-text-size-adjust: auto; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 14px;"></span><br />
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</span></h2>
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The first quarter of 2014 has gone quite peacefully, if you would discount the usual political disturbances. Filipinos probably heaved a sigh of relief at this as many still struggle to recover from the previous year’s tide of unpleasant experiences.</div>
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Last year was rather unforgettable, as natural disasters battered the country and caused damage worth billions of pesos. It was a painful eye-opener but it taught us one thing—the value of preparation. This is where microinsurance enters, as a hero with a promise that while you cannot control the acts of nature, you can control how much pain it will cause you.</div>
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As of end-2013, the Insurance Commission (IC) noted that the number of Filipinos insured surged 72 percent to almost 23 million from 10 million in 2009. This remarkable feat is attributable to the growing number of financial institutions offering affordable insurance policies to their clients.</div>
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The rural banking industry leads the pack in this endeavor, playing a key role in mainstreaming microinsurance, given its exposure to microfinance and its army of over 2,000 branches strategically located in far-flung areas where the usual takers of the product reside.</div>
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The Bangko Sentral ng Pilipinas further affirmed the significance of the industry when it issued Circular 683 in 2010, granting rural banks the authority to market microinsurance products deeming it as a “necessary and complementary component” of their primary business.</div>
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Microinsurance is a critical component of inclusive growth because it allows the poor to avail of life and property insurance coverages at low premium rates. By being an active provider of microinsurance, rural banks are not only reinforcing their relevance to their clients but the nation as well.</div>
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Stepping up to this responsibility, the Rural Bankers Association of the Philippines (RBAP), through its technical arm, the Rural Bankers Research and Development Foundation, Inc. (RBRDFI), has been conducting trainings to build the capacity of rural banks as effective channels of microinsurance.</div>
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The training program conducted by the RBRDFI aims to educate attendees on the fundamental principles of microinsurance, regulatory documents that govern engagement to such and viable marketing strategies. At the end of the two-day training, participants also take a qualifying exam required by the IC for microinsurance licensing.</div>
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On March 27 and 28, the RBRDFI held the 24th batch of microinsurance training at the RBAP office, bringing the number of rural banks trained and qualified for microinsurance licensing to 213 from 14 in the program’s pilot batch in 2011. There were also 485 bank officers certified to be appointed as soliciting officers.</div>
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The role of the rural banking industry in the growth of microinsurance also goes beyond the supply side of the equation. The RBAP-BRDFI likewise takes part in the development of regulatory frameworks and financial literacy programs to educate the public.</div>
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One of the initiatives done in partnership with RBAP is the development of the Alternative Dispute Resolution for Microinsurance (ADReM), a settlement program that seeks to resolve claim disputes outside courts to cut down the costs and expedite the process. As part of the Technical Working Group that drafted the framework of ADReM, RBAP provided first-hand information on settling client disputes and maintaining an effective client-agent relationship.</div>
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All these efforts, both from the government and the private sector, emphasize how much the country wants to achieve its goal of financial inclusion. As microinsurance continues to gain ground with the help of the rural banking industry, we might be a step closer to that goal.</div>
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