The Insurance Commission (IC) said it has already surpassed its 2016 target number of Filipinos to be covered by microinsurance.
In a statement on Tuesday, the regulator said it has a commitment to cover 27 million Filipinos by 2016.
“Through our initiatives in fostering inclusive insurance markets, we have again emerged as a model for microinsurance promotion in Asia with 29.03 million Filipinos covered with microinsurance as of the third quarter of 2015, surpassing our own commitment to cover 27 million Filipinos by 2016,” Insurance Commissioner Emmanuel Dooc said.
As of the third quarter of 2015, the IC noted that the microinsurance penetration rate hit 28.52 percent.
This means that 28.52 percent or 29.03 million individuals of the 101.80 million population are covered by microinsurance, it added.
“As the Philippines continue to take pride for being at the forefront of promoting microinsurance as an effective vehicle for financial inclusion and as a benchmark for other
Asian countries in terms of microinsurance market development, we are fueled to keeping our markets strong, stable and sustainable,” Dooc said.
This announcement was made during the 3rd South Asian Regulators’ Meet and International Insurance Conference held on May 12 to 13 in Kathmandu, Nepal.
The conference was attended by delegates from the international insurance regulators, insurers, reinsurers, brokers, donors, bankers and other relevant senior officials from Asia and Middle East.
Dooc mentioned that new product lines are hitting the Philippine market with the new microinsurance frameworks for agriculture, health and pre-need.
Adopted in October 2015, the Micro-Agri Framework formally introduced a parametric-based or index-based microinsurance wherein benefits shall be facilitated by microinsurance providers when predefined parameters or indices are breached.
The Micro Pre-Need Framework, also adopted in October last year, aims to provide the low-income sector access to pre-need products—memorial, education and pension plans.
As a means of achieving the objectives of the National Health Insurance Act of 2013, Micro-health Framework, on the other hand, was adopted to address the health needs of the general population, particularly the low-income and informal sectors.
“The Philippines remains aggressive in its campaign for inclusive economic growth as greater efforts and genuine programs should be delivered to those who have not yet risen from poverty,” Dooc said.
Dooc concluded his speech by stressing the importance of regulator-industry dialogue and cooperation.
The Commissioner announced the creation of the Mutual Exchange Forum on Inclusive Insurance or the MEFIN Network which brings together the insurance regulators and private sectors from six jurisdictions: the Philippines, Indonesia, Vietnam, Mongolia, Pakistan and Nepal to share views and pick out specific lessons that are relevant for the development of inclusive insurance in the country context.
Meanwhile, Dooc was elected to serve as the first chairman of the MEFIN Network, which will hold its first Regional Steering Committee meeting in July in Manila.