Saturday, September 24, 2011
IC stepping up campaign against unlicensed insurers
BusinessWorld
Finance
Posted on September 21, 2011 09:59:40 PM
TACLOBAN CITY -- The Insurance Commission (IC) wants the registration of unlicensed insurance providers completed by the end of this year as part of efforts to convince poor households to avail of microinsurance.
Ma. Lourdes L. Ramos of the IC’s public assistance information division said the regulator has been stepping up the enforcement of the joint memorandum circular issued by the IC, Cooperative Development Authority (CDA) and Securities and Exchange Commission (SEC), that sets the government’s policy on informal insurance activities.
“Unlicensed insurance activities are usually done by cooperatives.
These are the groups that think it’s okay to do that. We want them to be formalized, place them on the mainstream and regulate their activities,” Ms. Ramos said in an interview during the three-day financial literacy roadshow on microinsurance in this city.
Under the joint IC-CDA-SEC Memorandum Circular 1-2010 issued January 29, 2010, all entities engaged in insurance activities are required to secure a certificate of authority from IC.
Informal insurance schemes should have closed by January, while those that want to formalize and continue to engage in the insurance business have up to this year to secure a certificate of authority.
“We want to protect the interest of members [of these informal insurance schemes] by regulating their activities. That way, clients are assured that they will get what’s due them,” Ms. Ramos said.
Joselito S. Almario, Department of Finance-National Credit Council (DOF-NCC) deputy executive director, said 2.9 million Filipinos are covered by informal insurance schemes not certified by the regulator.
“Formalizing these unlicensed insurance providers will help people appreciate the importance of securing insurance and assure their benefits,” Ms. Almario said -- S. Q. Meniano
Finance
Posted on September 21, 2011 09:59:40 PM
TACLOBAN CITY -- The Insurance Commission (IC) wants the registration of unlicensed insurance providers completed by the end of this year as part of efforts to convince poor households to avail of microinsurance.
Ma. Lourdes L. Ramos of the IC’s public assistance information division said the regulator has been stepping up the enforcement of the joint memorandum circular issued by the IC, Cooperative Development Authority (CDA) and Securities and Exchange Commission (SEC), that sets the government’s policy on informal insurance activities.
“Unlicensed insurance activities are usually done by cooperatives.
These are the groups that think it’s okay to do that. We want them to be formalized, place them on the mainstream and regulate their activities,” Ms. Ramos said in an interview during the three-day financial literacy roadshow on microinsurance in this city.
Under the joint IC-CDA-SEC Memorandum Circular 1-2010 issued January 29, 2010, all entities engaged in insurance activities are required to secure a certificate of authority from IC.
Informal insurance schemes should have closed by January, while those that want to formalize and continue to engage in the insurance business have up to this year to secure a certificate of authority.
“We want to protect the interest of members [of these informal insurance schemes] by regulating their activities. That way, clients are assured that they will get what’s due them,” Ms. Ramos said.
Joselito S. Almario, Department of Finance-National Credit Council (DOF-NCC) deputy executive director, said 2.9 million Filipinos are covered by informal insurance schemes not certified by the regulator.
“Formalizing these unlicensed insurance providers will help people appreciate the importance of securing insurance and assure their benefits,” Ms. Almario said -- S. Q. Meniano
Road show aims to increase awareness of microinsurance
Business World
Finance
Posted on September 19, 2011 04:24:17
TACLOBAN CITY -- The government yesterday kicked off a road show aimed at increasing awareness of microinsurance and risk protection.
Joselito S. Almario, deputy executive director of the Department of Finance-National Credit Council (DOF-NCC), said financial literacy seminars will be held in 15 other regions after Eastern Visayas.
Through this road show, he said the government is hopeful microinsurance would reach the poor communities.
“It has been an impression that insurance is only for those who are in the higher class. We are promoting microinsurance because this is intended for the low-income families. Premium on this product can be as low as P30 a month,” Mr. Almario told BusinessWorld at the sidelines of the seminar here yesterday.
Only 13% of the country’s population has life insurance while only 1% is covered by non-life insurance, he noted.
Since the government introduced microinsurance last year, however, he said commercial insurance companies have gained some two million clients.
After the financial literacy seminars, Mr. Almario said the government aimed to form a corps of microinsurance advocates from government, insurance companies, civil society, support organizations, and donors.
“These future microinsurance advocates are envisioned to help address two causes of low insurance coverage among the low-income sector -- the lack of awareness of insurance and low financial literacy level,” he said.
The road show is being held by the Insurance Commission with assistance from the DOF-NCC, German International Cooperation-Microinsurance Innovations Program for Social Security (GIZ-MIPSS) and Asian Development Bank-Japan Fund for Poverty Reduction (ADB-JFPR).
GIZ-MIPSS senior finance adviser Dante O. Portula said in a separate interview the international agency has been assisting the government under a four-year program that will expire in 2012.
“We have to popularize microinsurance. Disasters such as illnesses, injuries, or even death of family members, loss of property or natural catastrophes could happen to anybody -- but low-income families have to cope even harder with these risks because the effect on their limited financial possibilities could be fatal,” Mr. Portula said.
He said GIZ has been assisting the government capacitate insurance providers. -- Sarwell Q. Meniano
Finance
Posted on September 19, 2011 04:24:17
TACLOBAN CITY -- The government yesterday kicked off a road show aimed at increasing awareness of microinsurance and risk protection.
Joselito S. Almario, deputy executive director of the Department of Finance-National Credit Council (DOF-NCC), said financial literacy seminars will be held in 15 other regions after Eastern Visayas.
Through this road show, he said the government is hopeful microinsurance would reach the poor communities.
“It has been an impression that insurance is only for those who are in the higher class. We are promoting microinsurance because this is intended for the low-income families. Premium on this product can be as low as P30 a month,” Mr. Almario told BusinessWorld at the sidelines of the seminar here yesterday.
Only 13% of the country’s population has life insurance while only 1% is covered by non-life insurance, he noted.
Since the government introduced microinsurance last year, however, he said commercial insurance companies have gained some two million clients.
After the financial literacy seminars, Mr. Almario said the government aimed to form a corps of microinsurance advocates from government, insurance companies, civil society, support organizations, and donors.
“These future microinsurance advocates are envisioned to help address two causes of low insurance coverage among the low-income sector -- the lack of awareness of insurance and low financial literacy level,” he said.
The road show is being held by the Insurance Commission with assistance from the DOF-NCC, German International Cooperation-Microinsurance Innovations Program for Social Security (GIZ-MIPSS) and Asian Development Bank-Japan Fund for Poverty Reduction (ADB-JFPR).
GIZ-MIPSS senior finance adviser Dante O. Portula said in a separate interview the international agency has been assisting the government under a four-year program that will expire in 2012.
“We have to popularize microinsurance. Disasters such as illnesses, injuries, or even death of family members, loss of property or natural catastrophes could happen to anybody -- but low-income families have to cope even harder with these risks because the effect on their limited financial possibilities could be fatal,” Mr. Portula said.
He said GIZ has been assisting the government capacitate insurance providers. -- Sarwell Q. Meniano
Thursday, August 18, 2011
Philippines: Eight life insurers consider forming "super brokerage"
Asia Insurance Review
Eight life insurers in the Philippines are jointly seeking a permanent solution to their capitalisation problem which is to increase their minimum paid-up capital to PHP125 million (US$2.95 million) each as required by a ruling of the Insurance Commission and the Department of Finance.
To meet this target, these insurers are considering forming a "super brokerage", according to the Philippine Star. While the "super brokerage" will be a single entity, the individual stakeholders will still write their own policies. Another option is to consolidate through mergers and acquisition (M&A) among two or three insurers.
The eight insurers comprise one major player ranked between sixth and 10th in the industry in terms of premium income last year, two medium sized life insurers ranked from 11th to 20th, and five smaller companies.
The stakes for them will rise further because by the end of the year, the minimum paid-up capital requirement for an insurer will be PHP175 million. The capital increase programme started in 2006 and will culminate in a PHP250 million minimum paid-up capital level by 2015. By then, the Asean Free Trade Agreement (AFTA) will take effect, breaking down barriers for doing business among Asean member nations.
At present, Philippine insurers are seen as being at a possible disadvantage because they rank second lowest, if not the lowest, among their Asean counterparts in terms of capital. Of the 32 players in the Philippine life insurance industry, the top 10 players, which are mostly foreign-controlled and account for nearly 80% of total premiums, have already exceeded PHP1 billion in terms of capital.
Eight life insurers in the Philippines are jointly seeking a permanent solution to their capitalisation problem which is to increase their minimum paid-up capital to PHP125 million (US$2.95 million) each as required by a ruling of the Insurance Commission and the Department of Finance.
To meet this target, these insurers are considering forming a "super brokerage", according to the Philippine Star. While the "super brokerage" will be a single entity, the individual stakeholders will still write their own policies. Another option is to consolidate through mergers and acquisition (M&A) among two or three insurers.
The eight insurers comprise one major player ranked between sixth and 10th in the industry in terms of premium income last year, two medium sized life insurers ranked from 11th to 20th, and five smaller companies.
The stakes for them will rise further because by the end of the year, the minimum paid-up capital requirement for an insurer will be PHP175 million. The capital increase programme started in 2006 and will culminate in a PHP250 million minimum paid-up capital level by 2015. By then, the Asean Free Trade Agreement (AFTA) will take effect, breaking down barriers for doing business among Asean member nations.
At present, Philippine insurers are seen as being at a possible disadvantage because they rank second lowest, if not the lowest, among their Asean counterparts in terms of capital. Of the 32 players in the Philippine life insurance industry, the top 10 players, which are mostly foreign-controlled and account for nearly 80% of total premiums, have already exceeded PHP1 billion in terms of capital.
Saturday, July 30, 2011
The movement for microinsurance
(The Philippine Star) Updated June 13, 2011 12:00 AM Comments (0)
MANILA, Philippines - As microinsurance gains more ground in mainstream banking and finance circles, more and more organizations have now taken strides to provide products that are affordable and accessible to members who need it the most. Pioneer Life, recently the first to be granted approval by the Insurance Commission for their microinsurance programs has found partners in organizations such as NGOs, microfinance associations, banks, cooperatives and direct selling companies for various tailor-fitted needs. Whether it’s accident, life or property coverage — safety and protection is now well within their reach.
“We have always strived to produce savings and insurance products that are affordable and easy to acquire. This is in line with our vision to become a model Filipino enterprise,” shares President and CEO of Pioneer Life Lorenzo Chan, Jr. “In order to do that, we have to go beyond serving the standard A-B and corporate markets. For us, microinsurance is a natural progression to bring a useful product to people who need it most.”
One of the biggest microfinance institutions in the country, GM Bank sealed its partnership with Pioneer Group for the provision of Property Insurance Coverage, including fire, flood, and earthquake assistance, as well as Personal Accident Insurance to its many associates and members. GM Bank, Inc. is composed of two of Nueva Ecija’s most respected rural banks; Munoz Rural Bank, Inc. and Community Rural Bank, Inc. The Protektahan program was specifically designed for the needs of not just GM Bank associates but their clients and members as well.
A direct selling marketing company has gained ground for various products that promote personal health and wellness – the 7-in-1 Vera Coffee, and V7 Grape Seed Oil Extract. It’s only fitting that the officers, staff and members of Vera7 be protected for their financial wellness too. This is the partnership agreement signed between Vera7 and Pioneer where a special savings and wellness program was developed for the coverage of Personal Accident with Accidental Death and Disablement Benefit (ADDB).
Providing insurance coverage for eligible bank borrowers under a Group Credit Life Insurance Policy, Cantilan Bank is another big name in the field of rural banks that have decided to give their trust to Pioneer. The specialization of the bank includes banking and countryside development services in the northern and southern part of Mindanao.
World Kitchen Workers Service Cooperative, made up of some 80 kitchen workers and individuals part of the food service industry and other restaurants, has signed up for protection with Pioneer. Eligible borrowers of the cooperative will automatically be covered under a Group Credit Life Insurance Policy as well as Tr3asure Principle Accumulator Program, another Business Development initiative that implements a savings component, too.
Through these various partnerships, Pioneer Life aims to strengthen its foray into microinsurance and take a step closer in the end goal that is transforming every Filipino into a saver. In partnership with NGOs and institutions offering microfinance, Pioneer’s offerings of microinsurance programs meet the peculiar needs of this market and tailorfit to the requirements of a group. This early, the claims made by beneficiaries have helped keep kids in school and widows get back on their feet. “Microinsurance is an opportunity for us to reach out to more people regardless of where they are or what they do,” says Pioneer Life VP for Microinsurance Geric Laude. “We develop our programs only after we truly understand what their needs are.”
MANILA, Philippines - As microinsurance gains more ground in mainstream banking and finance circles, more and more organizations have now taken strides to provide products that are affordable and accessible to members who need it the most. Pioneer Life, recently the first to be granted approval by the Insurance Commission for their microinsurance programs has found partners in organizations such as NGOs, microfinance associations, banks, cooperatives and direct selling companies for various tailor-fitted needs. Whether it’s accident, life or property coverage — safety and protection is now well within their reach.
“We have always strived to produce savings and insurance products that are affordable and easy to acquire. This is in line with our vision to become a model Filipino enterprise,” shares President and CEO of Pioneer Life Lorenzo Chan, Jr. “In order to do that, we have to go beyond serving the standard A-B and corporate markets. For us, microinsurance is a natural progression to bring a useful product to people who need it most.”
One of the biggest microfinance institutions in the country, GM Bank sealed its partnership with Pioneer Group for the provision of Property Insurance Coverage, including fire, flood, and earthquake assistance, as well as Personal Accident Insurance to its many associates and members. GM Bank, Inc. is composed of two of Nueva Ecija’s most respected rural banks; Munoz Rural Bank, Inc. and Community Rural Bank, Inc. The Protektahan program was specifically designed for the needs of not just GM Bank associates but their clients and members as well.
A direct selling marketing company has gained ground for various products that promote personal health and wellness – the 7-in-1 Vera Coffee, and V7 Grape Seed Oil Extract. It’s only fitting that the officers, staff and members of Vera7 be protected for their financial wellness too. This is the partnership agreement signed between Vera7 and Pioneer where a special savings and wellness program was developed for the coverage of Personal Accident with Accidental Death and Disablement Benefit (ADDB).
Providing insurance coverage for eligible bank borrowers under a Group Credit Life Insurance Policy, Cantilan Bank is another big name in the field of rural banks that have decided to give their trust to Pioneer. The specialization of the bank includes banking and countryside development services in the northern and southern part of Mindanao.
World Kitchen Workers Service Cooperative, made up of some 80 kitchen workers and individuals part of the food service industry and other restaurants, has signed up for protection with Pioneer. Eligible borrowers of the cooperative will automatically be covered under a Group Credit Life Insurance Policy as well as Tr3asure Principle Accumulator Program, another Business Development initiative that implements a savings component, too.
Through these various partnerships, Pioneer Life aims to strengthen its foray into microinsurance and take a step closer in the end goal that is transforming every Filipino into a saver. In partnership with NGOs and institutions offering microfinance, Pioneer’s offerings of microinsurance programs meet the peculiar needs of this market and tailorfit to the requirements of a group. This early, the claims made by beneficiaries have helped keep kids in school and widows get back on their feet. “Microinsurance is an opportunity for us to reach out to more people regardless of where they are or what they do,” says Pioneer Life VP for Microinsurance Geric Laude. “We develop our programs only after we truly understand what their needs are.”
Subscribe to:
Posts (Atom)
