Gov’t readies rules for microinsurance

Gov't readies rules for microinsurance
By Ronnel Domingo
Philippine Daily Inquirer
First Posted 16:48:00 12/31/2010

MANILA, Philippines – The government is stepping up the preparation of rules for microinsurance as market for low-cost policies expands, Finance Undersecretary Gil S. Beltran said.

In an interview, Beltran said people who would be directly involved in implementing the rules—including officials of the Insurance Commission and accountants—were also being trained to ensure accurate reporting and analysis of relevant data.

"As we are developing performance indicators for microinsurance providers, industry players are being consulted," he added. "In such a way, companies will be ready once the regulations are issued."

Beltran said the market for microinsurance products and services had emerged over the years as more people get jobs and become aware of the importance of insurance coverage for health and others needs.

In November, microinsurance experts from all over the world called on private firms to develop insurance products for the poor as they cited the Philippines being among global leaders in promoting low-premium policies.

The International Labor Organization-backed MIN, together with Munich Re Foundation, organized the 6th International Microinsurance Conference that was held at the InterContinental Hotel in Makati City.

According to the National Credit Council, there is a "large growth potential" for the Philippine microinsurance market considering that penetration of insurance in general remains relatively low.

NCC data show that life insurance covers some 13 percent of the population while coverage of non-life insurance is "miniscule."

There are an estimated 2.9 million people covered by microinsurance as of 2009, but the potential market base waiting to be tapped is about 35 million people.

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