Microinsurance now covering 7.8-million poor Pinoys
By Ted P. Torres (The Philippine Star) Updated September 13, 2012 12:00
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MANILA, Philippines - There are now 7.8 million Filipinos covered by
microinsurance, according to the Insurance Commission (IC).
During the national conference for microinsurance held at the Sofitel
Hotel yesterday, the IC said these Filipinos were covered by around five
million microinsurance policies.
IC Actuarial Division chief Reynaldo Vergara said the number of
microinsurance policies issued covered roughly one-third of the 27
million Filipinos classified as among the poorest in the country.
"They are the market for the microinsurance industry," Vergara added.
At the end of 2011, outstanding microinsurance policies stood at 3.5
million. The dramatic increase in the number of insured can be
attributed to the leap in the number of institutions now selling
microinsurance.
There are now 80 microinsurance products, 54 classified as life products
while 26 are non-life products. These are sold by commercial private
life insurance companies such as Philippine American Life and General
Insurance Co. (PhilamLife) and the Philippine Prudential Life Insurance
Co. Inc. (Philippine Prudential), which have joined the microinsurance
bandwagon.
Aside from insurers, those who can sell microinsurance products are
mutual benefit association (MBAs), cooperatives and credit unions.
Assisting in the expansion of the distribution network of the
microinsurance industry are microfinance institutions (MFIs) and rural
banks.
Vergara pointed out, however, that these institutions must have
undergone the required licensure training with the IC before they are
allowed to sell microinsurance products.
The microinsurance framework makes it clear that the premiums computed
on a daily basis will not exceed five percent of the current minimum
wage rate for non-agricultural workers in Metro Manila.
The maximum sum of guaranteed benefits is not more that 500 times the
daily minimum wage rate.
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