By: Ronnel W. Domingo
Philippine Daily Inquirer
1:22 am | Wednesday, November 23rd, 2011
Microinsurance in the Philippines could become as successful as
microcredit as it is expected to gain ground amid increasing number of
providers and rising demand, Finance Undersecretary Gil S. Beltran said
Tuesday.
According to a report that Beltran prepared, there has been an increase
in the number of microinsurance products, with some coming from
established insurance companies.
Other providers of low-premium insurance include cooperative insurance
societies, mutual benefit associations, pre-need companies and health
maintenance organizations.
Beltran said that in the Philippines—considered to be one of the more
developed microinsurance markets in the world—products are being
delivered through nontraditional means by partnerships with
microfinancing institutions, as well as through microinsurance agents
and brokers.
"Compared to commercial (mainstream insurance) products, microinsurance
products are affordable, involve simple contracts, have relaxed terms
and conditions," he said. "Some providers even offer policies that are
tailor-fit to the buyers' needs."
Also, lower capitalization requirements for microinsurance providers as
well as relaxed licensing requirements for agents are expected to foster
an enabling environment for the business, Beltran said.
"To ensure greater client protection, the government is working with
stakeholders toward the formalization of informal insurance providers,
institution of mechanisms for redress and grievance, and encouragement
of the use of alternative means to resolve disputes," he added.
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