Manila Bulletin
By CHINO S. LEYCO
January 29, 2011, 5:20pm
MANILA, Philippines — The Department of Finance (DoF) and the Insurance Commission (IC) announced that they will launch a massive campaign to promote microinsurance awareness in the country, starting with a team-up with the local government of Quezon City.
In a statement, the finance department and the IC said the alliance with the Quezon City government will start on January 31 through the launch of the “Roadmap to Financial Literacy on Microinsurance.”
The collaboration between the national government and local government units (LGUs) is seen to promote and provide risk protection to the country’s low income earners.
Microinsurance was introduced in the country to supplement the poverty alleviation program of the government.
Since poor households are most vulnerable to risks associated with uncertain losses such as death, illness or injury, accidents, and natural and man-made calamities, there is a vital need to provide the low-income sector with access to affordable financial protection in case of such contingencies.
In 2010, the government through the DoF-National Credit Council and in collaboration with other government agencies and the private sector launched the twin pillars of microinsurance development – the “National Strategy for Microinsurance” and the “Regulatory Framework for Microinsurance.”
The “National Strategy for Microinsurance” defines the vision, objectives, roles of the various stakeholders, and key strategies to be pursued in enhancing access of the low-income sector to insurance products and services.
The “Regulatory Framework for Microinsurance,” on the other hand, establishes the policy and regulatory environment to encourage, enhance, and facilitate the safe and sound provision of microinsurance products and services by the private sector.
The event is the culmination of the observance of the Microinsurance Month. Under Presidential Proclamation 1212 signed in January 10, 2007, January is declared as Microinsurance Month and appointed the IC and the DoF as the lead agencies.
Monday, January 31, 2011
Wednesday, January 5, 2011
Draft microinsurance standards, product OK’d
BusinessWorld
Finance
Posted on 09:33 PM, January 04, 2011
BY PRINZ P. MAGTULIS, Reporter
STANDARDS for the nascent microinsurance industry as well as the prototype of a non-life product may be released by the Insurance Commission (IC) at the end of the month, after these were approved by an interagency committee.
“Yes, we approved them. They are now with the IC,” Finance Undersecretary Gil S. Beltran, who headed the committee, told BusinessWorld last Thursday.
Joselito S. Almario, deputy executive director of the National Credit Council, said in a separate phone interview last Thursday that “circulars will be issued on Jan. 31” in time for the “start of a financial literacy campaign to educate insurers” about the developments.
“Deputy [Insurance] Commissioner (Vida T. Chiong) decided to wait for the new commissioner to take over. He will be the one to issue the circulars,” he explained.
Mr. Almario oversaw the work of three technical working groups that worked on the standards, the prototype and the roadmap for the financial literacy campaign. The groups made draft circulars that were then forwarded to the steering committee for review.
The groups and the committee were composed of representatives from the IC, the Securities and Exchange Commission, the central bank, the Cooperative Development Authority, and insurance groups Philippine Life Insurance Association, Inc. (PLIA) and Philippine Insurers and Reinsurers Association (PIRA).
The draft circulars have been submitted to IC for final approval.
Emmanuel L. Dooc was appointed Insurance Commissioner last Dec. and will assume office within the month. Ms. Chiong has been acting as IC officer-in-charge in the meantime.
The performance standards will govern microinsurance providers, which include commercial insurers, cooperative insurance societies and mutual benefit associations.
The standards, known collectively as “SEGURO” -- for Solvency and Stability, Efficiency, Governance, Understanding of the product, Risk-based capital, and Outreach -- will evaluate insurers based on their solvency, level of risk-based capital, among others.
Standards will be used essentially “to evaluate a microinsurance firm’s viability and capacity to support future claims,” Mr. Almario explained.
The plan is to have the standards in place starting this year, he said, and for microinsurance providers to report to IC “how they performed against the standards by submitting their financial statements in 2012.”
“The [IC] shall use the performance standards to identify as early as possible entities whose financial conditions and/or performance...are [of] concern and if warranted, recommend appropriate remedial measures,” the draft standards read.
Ms. Chiong, in a separate phone interview last Thursday, said the new standards will provide “regulatory space” to microinsurers as they are now subject to the “higher standards” followed by the big insurance companies.
Insurance Memorandum Circular (IMC) 1-2010 issued in January last year provided the regulatory framework for microinsurance.
The circular defined microinsurance and set a P200,000 maximum coverage with daily premiums “not exceeding 5% of the minimum wage in Metro Manila” or at about P20 at present.
IMC 1-2010 allowed 16 microinsurance products to be registered with the IC, but Mr. Almario said prototype products are being developed for both non-life and life insurers in order to expand the microinsurance market.
Non-life insurers grouped under PIRA will soon be marketing the “three-in-one” product known as “Buhay, Bahay at Kabuhayan” after the prototype was approved by the steering committee.
The product, Mr. Almario said, will allow clients to have a maximum of P30,000 coverage with premiums “depending on the costing to be provided by the company.”
The P30,000 coverage is divided into: P10,000 for beneficiaries in case of death of the insured; P10,000 for a destroyed house; and P10,000 for a damaged business establishment due to natural calamities.
A prototype for life insurers is still being developed.
Mr. Almario added that a financial literacy campaign that will be conducted nationwide will push through by Jan. 31 to “educate insurers and potential clients about the standards and the non-life product from January to June.
Finance
Posted on 09:33 PM, January 04, 2011
BY PRINZ P. MAGTULIS, Reporter
STANDARDS for the nascent microinsurance industry as well as the prototype of a non-life product may be released by the Insurance Commission (IC) at the end of the month, after these were approved by an interagency committee.
“Yes, we approved them. They are now with the IC,” Finance Undersecretary Gil S. Beltran, who headed the committee, told BusinessWorld last Thursday.
Joselito S. Almario, deputy executive director of the National Credit Council, said in a separate phone interview last Thursday that “circulars will be issued on Jan. 31” in time for the “start of a financial literacy campaign to educate insurers” about the developments.
“Deputy [Insurance] Commissioner (Vida T. Chiong) decided to wait for the new commissioner to take over. He will be the one to issue the circulars,” he explained.
Mr. Almario oversaw the work of three technical working groups that worked on the standards, the prototype and the roadmap for the financial literacy campaign. The groups made draft circulars that were then forwarded to the steering committee for review.
The groups and the committee were composed of representatives from the IC, the Securities and Exchange Commission, the central bank, the Cooperative Development Authority, and insurance groups Philippine Life Insurance Association, Inc. (PLIA) and Philippine Insurers and Reinsurers Association (PIRA).
The draft circulars have been submitted to IC for final approval.
Emmanuel L. Dooc was appointed Insurance Commissioner last Dec. and will assume office within the month. Ms. Chiong has been acting as IC officer-in-charge in the meantime.
The performance standards will govern microinsurance providers, which include commercial insurers, cooperative insurance societies and mutual benefit associations.
The standards, known collectively as “SEGURO” -- for Solvency and Stability, Efficiency, Governance, Understanding of the product, Risk-based capital, and Outreach -- will evaluate insurers based on their solvency, level of risk-based capital, among others.
Standards will be used essentially “to evaluate a microinsurance firm’s viability and capacity to support future claims,” Mr. Almario explained.
The plan is to have the standards in place starting this year, he said, and for microinsurance providers to report to IC “how they performed against the standards by submitting their financial statements in 2012.”
“The [IC] shall use the performance standards to identify as early as possible entities whose financial conditions and/or performance...are [of] concern and if warranted, recommend appropriate remedial measures,” the draft standards read.
Ms. Chiong, in a separate phone interview last Thursday, said the new standards will provide “regulatory space” to microinsurers as they are now subject to the “higher standards” followed by the big insurance companies.
Insurance Memorandum Circular (IMC) 1-2010 issued in January last year provided the regulatory framework for microinsurance.
The circular defined microinsurance and set a P200,000 maximum coverage with daily premiums “not exceeding 5% of the minimum wage in Metro Manila” or at about P20 at present.
IMC 1-2010 allowed 16 microinsurance products to be registered with the IC, but Mr. Almario said prototype products are being developed for both non-life and life insurers in order to expand the microinsurance market.
Non-life insurers grouped under PIRA will soon be marketing the “three-in-one” product known as “Buhay, Bahay at Kabuhayan” after the prototype was approved by the steering committee.
The product, Mr. Almario said, will allow clients to have a maximum of P30,000 coverage with premiums “depending on the costing to be provided by the company.”
The P30,000 coverage is divided into: P10,000 for beneficiaries in case of death of the insured; P10,000 for a destroyed house; and P10,000 for a damaged business establishment due to natural calamities.
A prototype for life insurers is still being developed.
Mr. Almario added that a financial literacy campaign that will be conducted nationwide will push through by Jan. 31 to “educate insurers and potential clients about the standards and the non-life product from January to June.
Wednesday, December 29, 2010
More Pinoys access microfinance Number of clients in RP increased -- ADB report
Business World
Finance
Posted on 08:56 PM, December 28, 2010
THE NUMBER of active microfinance clients in the Philippines increased between 2006 and 2008 following the implementation of a project by the Asian Development Bank (ADB), a report released yesterday by the multilateral lending agency showed.
THE ASIAN DEVELOPMENT BANK released a report yesterday indicating that the number of microfinance clients in the Philippines increased between 2006 to 2008. Microfinance is considered one of the tools that help combat poverty.
THE ASIAN DEVELOPMENT BANK released a report yesterday indicating that the number of microfinance clients in the Philippines increased between 2006 to 2008. Microfinance is considered one of the tools that help combat poverty.
The ADB reported that microfinance clients increased by 129.17% to 5.5 million in December 2008, from 2.4 million in December 2006.
ADB said its $150-million Microfinance Development Program (MDP), approved on Nov. 22, 2005, helped create a “sound and market-oriented microfinance sector development path” for the Philippines.
The project had the goal of helping the Philippine government in addressing weaknesses in the microfinance sector and help poor Filipinos access quality financial services.“The objective of the MDP was to improve household incomes, reduce poverty and reduce the vulnerability of the poor,” ADB said in the report.
Microfinance is the provision of financial services to low-income clients who traditionally lack access to typical banking and related services.
Microfinance is also the idea that low-income individuals are capable of lifting themselves out of poverty if given access to financial services.
The National Credit Council, under the Finance department, served as the borrower and executing agency for the loan.
Aside from increasing the number of Filipinos who access microfinance services, the bank said MDP also helped in creating a total of 2.6 million jobs during the period of its implementation, along with the increase in the amount of microfinance and in the number of loan releases.
The ADB report added that performance standards of microfinance institutions in terms of portfolio quality, efficiency, sustainability outreach ratings and continued monitoring were also achieved, along with easy financial transactions through electronic banking and appropriate rural saving schemes that increased the clients’ savings mobilization.
“The MDP enhanced the enabling and regulatory environment as the Bangko Sentral ng Pilipinas formulated rules and regulations to promote microfinance operations by banks, allowing microfinance-oriented banks to open branches anywhere in the country, and promoting electronic banking with consumer protection, particularly for savings mobilization,” ADB said.
It added that the Securities and Exchange Commission managed to comply with the program’s required policy action of compelling microfinance-oriented non-government organizations to be transparent and observe full disclosure in their operations.
Assessing the MDP overall, the multilateral financial institution said it was “successful” in achieving its objectives with its high efficiency and likely sustainability.
Finance officials were not immediately available for comment as of yesterday. -- Jo Javan A. Cerda
Finance
Posted on 08:56 PM, December 28, 2010
THE NUMBER of active microfinance clients in the Philippines increased between 2006 and 2008 following the implementation of a project by the Asian Development Bank (ADB), a report released yesterday by the multilateral lending agency showed.
THE ASIAN DEVELOPMENT BANK released a report yesterday indicating that the number of microfinance clients in the Philippines increased between 2006 to 2008. Microfinance is considered one of the tools that help combat poverty.
THE ASIAN DEVELOPMENT BANK released a report yesterday indicating that the number of microfinance clients in the Philippines increased between 2006 to 2008. Microfinance is considered one of the tools that help combat poverty.
The ADB reported that microfinance clients increased by 129.17% to 5.5 million in December 2008, from 2.4 million in December 2006.
ADB said its $150-million Microfinance Development Program (MDP), approved on Nov. 22, 2005, helped create a “sound and market-oriented microfinance sector development path” for the Philippines.
The project had the goal of helping the Philippine government in addressing weaknesses in the microfinance sector and help poor Filipinos access quality financial services.“The objective of the MDP was to improve household incomes, reduce poverty and reduce the vulnerability of the poor,” ADB said in the report.
Microfinance is the provision of financial services to low-income clients who traditionally lack access to typical banking and related services.
Microfinance is also the idea that low-income individuals are capable of lifting themselves out of poverty if given access to financial services.
The National Credit Council, under the Finance department, served as the borrower and executing agency for the loan.
Aside from increasing the number of Filipinos who access microfinance services, the bank said MDP also helped in creating a total of 2.6 million jobs during the period of its implementation, along with the increase in the amount of microfinance and in the number of loan releases.
The ADB report added that performance standards of microfinance institutions in terms of portfolio quality, efficiency, sustainability outreach ratings and continued monitoring were also achieved, along with easy financial transactions through electronic banking and appropriate rural saving schemes that increased the clients’ savings mobilization.
“The MDP enhanced the enabling and regulatory environment as the Bangko Sentral ng Pilipinas formulated rules and regulations to promote microfinance operations by banks, allowing microfinance-oriented banks to open branches anywhere in the country, and promoting electronic banking with consumer protection, particularly for savings mobilization,” ADB said.
It added that the Securities and Exchange Commission managed to comply with the program’s required policy action of compelling microfinance-oriented non-government organizations to be transparent and observe full disclosure in their operations.
Assessing the MDP overall, the multilateral financial institution said it was “successful” in achieving its objectives with its high efficiency and likely sustainability.
Finance officials were not immediately available for comment as of yesterday. -- Jo Javan A. Cerda
Friday, November 12, 2010
Asia: Big scope for microinsurance in several countries
Asia Insurance Review Vol I Issue 184
The Philippines, Indonesia and India offer the biggest market opportunities for microinsurance because of their regulatory frameworks, strong cooperative systems and potential risks from extreme weather and disasters such as earthquakes and volcano eruptions, reports Reuters citing Mr Craig Churchill, head of the global Microinsurance Network and team leader of the International Labour Office's Microinsurance Innovation Facility.
He was speaking in conjunction with the three-day 6th International Microinsurance Conference in Manila that began on Tuesday. Around 500 participants are attending the event to discuss the solutions and challenges in microinsurance. The conference is organised by the Munich Re Foundation, Microinsurance Network, the Philippines' Department of Finance, and Georgia State University's Center for the Economic Analysis of Risk.
At present, over 140 million people, mostly in Africa and Asia, are covered by affordable insurance premiums, and studies showed the potential market is up to 3 billion, says the Munich Re Foundation and International Labour Organisation. More than half of microinsurance products are focused on life and health, while less than 10% cover farms.
"We're still at the experimental stage in offering products that could cover agriculture," said Mr Churchill, adding that there is huge potential growth for such products, citing the impact of typhoons Ketsana and Parma in the northern Philippines in late 2009.
Last month, German reinsurer Munich Re said that it would launch a reinsurance project in the Philippines to cover cooperative companies against extreme weather events. That will be the first microinsurance product in the country to offer farmers some protection against typhoons and flooding problems, to which the Philippines is prone.
Mr Joselito S Almario, a director of the Department of Finance, said that microinsurance has a potential Philippine market of nearly 35 million people willing to pay a premium of PHP20-30 (US$0.46-0.69) a week for coverage of up to PHP120,000 (US$2,771) in life and non-life benefits. At present, 14% of the Philippines' 96 million people have insurance, including 2.9 million people covered by microinsurance, mostly as members of cooperatives.
The Philippines, Indonesia and India offer the biggest market opportunities for microinsurance because of their regulatory frameworks, strong cooperative systems and potential risks from extreme weather and disasters such as earthquakes and volcano eruptions, reports Reuters citing Mr Craig Churchill, head of the global Microinsurance Network and team leader of the International Labour Office's Microinsurance Innovation Facility.
He was speaking in conjunction with the three-day 6th International Microinsurance Conference in Manila that began on Tuesday. Around 500 participants are attending the event to discuss the solutions and challenges in microinsurance. The conference is organised by the Munich Re Foundation, Microinsurance Network, the Philippines' Department of Finance, and Georgia State University's Center for the Economic Analysis of Risk.
At present, over 140 million people, mostly in Africa and Asia, are covered by affordable insurance premiums, and studies showed the potential market is up to 3 billion, says the Munich Re Foundation and International Labour Organisation. More than half of microinsurance products are focused on life and health, while less than 10% cover farms.
"We're still at the experimental stage in offering products that could cover agriculture," said Mr Churchill, adding that there is huge potential growth for such products, citing the impact of typhoons Ketsana and Parma in the northern Philippines in late 2009.
Last month, German reinsurer Munich Re said that it would launch a reinsurance project in the Philippines to cover cooperative companies against extreme weather events. That will be the first microinsurance product in the country to offer farmers some protection against typhoons and flooding problems, to which the Philippines is prone.
Mr Joselito S Almario, a director of the Department of Finance, said that microinsurance has a potential Philippine market of nearly 35 million people willing to pay a premium of PHP20-30 (US$0.46-0.69) a week for coverage of up to PHP120,000 (US$2,771) in life and non-life benefits. At present, 14% of the Philippines' 96 million people have insurance, including 2.9 million people covered by microinsurance, mostly as members of cooperatives.
Micro-insurance regulatory framework set
BusinessWorld, Finance
Posted on 02:04 PM, November 10, 2010
Breaking News ( Updated as of 01:54 PM )
A REGULATORY framework for micro-insurance companies will be implemented in January, officials said on the second day of the sixth International Micro-insurance Conference in Makati City.
"The performance standards [regulations] will take in effect by January 2011," said Vida T. Chiong, Insurance Commission deputy commissioner and officer-in-charge.
"This will serve as a guide for the commission and other stakeholders to determine the viability of a [micro-insurance] company -- if it has the capacity to settle claims in the future," she added.
Ms. Chiong said the standards will provide "regulatory space" to micro-insurers with "lower" requirements for putting up a micro-insurance compared to those stipulated in the Insurance Code.
Geraldine Desiderio-Garcia, chairman of the micro-insurance committee of the Philippine Life Insurers Association, said in a lecture at the conference the standards will "formalize existing micro-insurance practices" such as cutting by half the P100-million capital requirement -- the fund to put up a micro-insurance firm -- for commercial insurers.
The standards, currently undergoing fine-tuning by a technical working group composed of government officials and private representatives, will be transmitted next month to a micro-insurance steering committee, headed by Finance Undersecretary Gil S. Beltran,, for review.
The Insurance Commission will give final approval of standards. -- Prinz P. Magtulis
Posted on 02:04 PM, November 10, 2010
Breaking News ( Updated as of 01:54 PM )
A REGULATORY framework for micro-insurance companies will be implemented in January, officials said on the second day of the sixth International Micro-insurance Conference in Makati City.
"The performance standards [regulations] will take in effect by January 2011," said Vida T. Chiong, Insurance Commission deputy commissioner and officer-in-charge.
"This will serve as a guide for the commission and other stakeholders to determine the viability of a [micro-insurance] company -- if it has the capacity to settle claims in the future," she added.
Ms. Chiong said the standards will provide "regulatory space" to micro-insurers with "lower" requirements for putting up a micro-insurance compared to those stipulated in the Insurance Code.
Geraldine Desiderio-Garcia, chairman of the micro-insurance committee of the Philippine Life Insurers Association, said in a lecture at the conference the standards will "formalize existing micro-insurance practices" such as cutting by half the P100-million capital requirement -- the fund to put up a micro-insurance firm -- for commercial insurers.
The standards, currently undergoing fine-tuning by a technical working group composed of government officials and private representatives, will be transmitted next month to a micro-insurance steering committee, headed by Finance Undersecretary Gil S. Beltran,, for review.
The Insurance Commission will give final approval of standards. -- Prinz P. Magtulis
Insurance standards readied
Insurance standards readied
BusinessWorld
Finance
Posted on 08:38 PM, November 10, 2010
REGULATORS are preparing “performance standards” for microinsurance providers to make sure their operations are sustainable and the poor, who are their clients, are protected.
At the same time, they are planning a nationwide financial literacy campaign to increase awareness among the poor about the importance of microinsurance.
Vida T. Chiong, deputy commissioner and officer-in-charge of the Insurance Commission (IC), shared with participants of the 6th International Microinsurance Conference in Makati City yesterday that the performance standards shall serve as a “guide for the commission... to determine... the capacity [of a microinsurer] to settle claims in the future.”
The standards go by the acronym “SEGURO,” for Stability, Efficiency, Governance, Understanding of the product, Risk Management and Outreach.
Microinsurance providers -- which include commercial insurers, cooperative insurance societies and mutual benefit associations -- will be evaluated based on their solvency and level of risk-based capital, among others.
Their performance, in terms of time they take to pay out claims, number of claims they reject, growth in number of clients and growth in premiums, will also be examined.
The standards are currently being fine-tuned by a technical working group composed of the IC, National Credit Council, Securities and Exchange Commission, Philippine Life Insurance Association, Inc. and the Philippine Insurers and Reinsurers Association.
These will be transmitted next month to a steering committee, headed by Finance Undersecretary Gil S. Beltran for review.
The IC will give final approval to the standards.
The plan is to have the standards in place by January 2011 and for microinsurance providers to report to the IC how they performed against the standards by 2012.
“The Insurance Commission shall use the performance standards to identify as early as possible those entities whose financial condition is a concern and recomend appropriate remedial measures, if necessary,” a draft IC circular states.
Meanwhile, Joselito A. Almario, a director at the Finance department, said a microinsurance literacy campaign is planned to start by January.
“It will run from January to June. We will go region to region to educate stakeholders, especially the poor, about microinsurance,” he said.
Modules will be provided during the regional campaign, Mr. Almario said, with stakeholders such as regulators, insurance firms, clients, and even legislators expected to learn “what they can contribute to boost the microinsurance industry in the country.” -- Prinz P. Magtulis
BusinessWorld
Finance
Posted on 08:38 PM, November 10, 2010
REGULATORS are preparing “performance standards” for microinsurance providers to make sure their operations are sustainable and the poor, who are their clients, are protected.
At the same time, they are planning a nationwide financial literacy campaign to increase awareness among the poor about the importance of microinsurance.
Vida T. Chiong, deputy commissioner and officer-in-charge of the Insurance Commission (IC), shared with participants of the 6th International Microinsurance Conference in Makati City yesterday that the performance standards shall serve as a “guide for the commission... to determine... the capacity [of a microinsurer] to settle claims in the future.”
The standards go by the acronym “SEGURO,” for Stability, Efficiency, Governance, Understanding of the product, Risk Management and Outreach.
Microinsurance providers -- which include commercial insurers, cooperative insurance societies and mutual benefit associations -- will be evaluated based on their solvency and level of risk-based capital, among others.
Their performance, in terms of time they take to pay out claims, number of claims they reject, growth in number of clients and growth in premiums, will also be examined.
The standards are currently being fine-tuned by a technical working group composed of the IC, National Credit Council, Securities and Exchange Commission, Philippine Life Insurance Association, Inc. and the Philippine Insurers and Reinsurers Association.
These will be transmitted next month to a steering committee, headed by Finance Undersecretary Gil S. Beltran for review.
The IC will give final approval to the standards.
The plan is to have the standards in place by January 2011 and for microinsurance providers to report to the IC how they performed against the standards by 2012.
“The Insurance Commission shall use the performance standards to identify as early as possible those entities whose financial condition is a concern and recomend appropriate remedial measures, if necessary,” a draft IC circular states.
Meanwhile, Joselito A. Almario, a director at the Finance department, said a microinsurance literacy campaign is planned to start by January.
“It will run from January to June. We will go region to region to educate stakeholders, especially the poor, about microinsurance,” he said.
Modules will be provided during the regional campaign, Mr. Almario said, with stakeholders such as regulators, insurance firms, clients, and even legislators expected to learn “what they can contribute to boost the microinsurance industry in the country.” -- Prinz P. Magtulis
Microinsurance sees growth opportunities in Asia
Reuters - Wednesday, November 10
MANILA, Nov 9 - India, Indonesia and the Philippines offer the biggest
opportunities for the fledging microinsurance industry, which has a potential market of 3 billion people, industry officials said on Tuesday.
Microinsurance offers coverage for people with low incomes, including products such as life insurance, and is branching into areas such as offering farmers polices against extreme weather.
Over 140 million people, mostly in Africa and Asia, are now covered by affordable insurance premiums, and studies showed the potential market is up to 3 billion, the Munich Re Foundation and International Labour Organisation said ahead of a three-day microinsurance conference in Manila.
Craig Churchill, head of the global Microinsurance Network, said more than half of microinsurance products were focused on life and health while less than 10 percent cover farms.
"We're still at the experimental stage in offering products that could cover agriculture," he said, adding there was huge potential growth for such products, citing impacts of typhoons Ketsana and Parma in the northern Philippines in late 2009.
Those typhoons, and Typhoon Megi in October, caused deaths, flooding, landslides, and damage to crops and infrastructure.
Last month, German reinsurer Munich Re said it would launch a reinsurance project in the Philippines to cover co-operative companies against extreme weather events. [ID:nLDE69A1DM]
That will be the first microinsurance product in the country to offer farmers some protection against perennial typhoon and flooding problems. Another three groups offer non-life products.
Churchill said the Philippines, Indonesia and India offer the biggest market opportunities due to their regulatory frameworks, strong co-operative system and potential risks from extreme weather and disasters such as earthquake and volcanoes.
About 14 percent of the Philippines' 96 million people have insurance, including 2.9 million people covered by microinsurance, mostly as members of co-operatives,
Joselito Almario of the Finance Department said.
He said microinsurance had a potential Philippine market of nearly 35 million people willing to pay a premium of 20-30 pesos a week for coverage of up to 120,000 pesos in life and non-life benefits.
"It costs them just a pack of cigarettes a day," said Almario, who is also deputy executive director of the national credit council.
The government has set a maximum daily premium of 20 pesos, 5 percent of the daily minimum wage in Metro Manila, for life and health insurance products offering payouts of up to 200,000 pesos for more than a dozen insurers, including rural banks and co-operatives
MANILA, Nov 9 - India, Indonesia and the Philippines offer the biggest
opportunities for the fledging microinsurance industry, which has a potential market of 3 billion people, industry officials said on Tuesday.
Microinsurance offers coverage for people with low incomes, including products such as life insurance, and is branching into areas such as offering farmers polices against extreme weather.
Over 140 million people, mostly in Africa and Asia, are now covered by affordable insurance premiums, and studies showed the potential market is up to 3 billion, the Munich Re Foundation and International Labour Organisation said ahead of a three-day microinsurance conference in Manila.
Craig Churchill, head of the global Microinsurance Network, said more than half of microinsurance products were focused on life and health while less than 10 percent cover farms.
"We're still at the experimental stage in offering products that could cover agriculture," he said, adding there was huge potential growth for such products, citing impacts of typhoons Ketsana and Parma in the northern Philippines in late 2009.
Those typhoons, and Typhoon Megi in October, caused deaths, flooding, landslides, and damage to crops and infrastructure.
Last month, German reinsurer Munich Re
That will be the first microinsurance product in the country to offer farmers some protection against perennial typhoon and flooding problems. Another three groups offer non-life products.
Churchill said the Philippines, Indonesia and India offer the biggest market opportunities due to their regulatory frameworks, strong co-operative system and potential risks from extreme weather and disasters such as earthquake and volcanoes.
About 14 percent of the Philippines' 96 million people have insurance, including 2.9 million people covered by microinsurance, mostly as members of co-operatives,
Joselito Almario of the Finance Department said.
He said microinsurance had a potential Philippine market of nearly 35 million people willing to pay a premium of 20-30 pesos a week for coverage of up to 120,000 pesos in life and non-life benefits.
"It costs them just a pack of cigarettes a day," said Almario, who is also deputy executive director of the national credit council.
The government has set a maximum daily premium of 20 pesos, 5 percent of the daily minimum wage in Metro Manila, for life and health insurance products offering payouts of up to 200,000 pesos for more than a dozen insurers, including rural banks and co-operatives
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