INSURING
Supporting the development of microinsurance: An industry perspective
THE POOR
By Emmanuel R. Que Chairman, Philippine Insurers
and Reinsurers Association
ABOUT PIRA
• Philippine Insurers and Reinsurers Association
• 72 companies
• Rating organization
• Voice of the non-life insurance industry
ABOUT
PIRA
VISION: STRONG, UNIFIED,
INFLUENTIAL & COHESIVE NON-LIFE
INDUSTRY
RIGHTS & INTEREST
STRENGTH
GROWTH
SOCIO-ECONOMIC
DEVELOPMENT
FORUMS & DIALOGUES
UNITY, GOODWILL &
COOPERATION
ALLIANCES
• More than 100
years old
• P54.57 billion in
Gross Premiums
(2013)
• 4.4% growth rate
(2013)
• GPW = 1.42% of
GDP
NON-LIFE INSURANCE IN PH
SINGAPORE 6.1 %
MALAYSIA 4.8 %
THAILAND 4.3 %
VIETNAM 1.55 %
PHILIPPINES 1.42%
INDONESIA 1.3 %
INSURANCE PENETRATION
• 25 million live below poverty line
• 50% of population say they are poor
SAD REALITY IN PH
• 100 million people (2013)
• Environment risks: Accidents, crimes,
natural calamities
• Typical solution: Loan sharks
SAD REALITY IN PH
• Health risks: Sickness, injury, death
LONG TERM SOLUTION
MICROINSURANCE
TIMELINE
1997
Planting
of seeds
2004
Intro with
micro
finance
2006
Policy
and
regulation
launch
2010
National
Strategy
launch
PIRA TECHNICAL SUB-COMMITTEE ON MICROINSURANCE
Fulfill PIRA’s role in the National Microinsurance Initiatives (Inter-agency Projects)
• Technical Working Groups
• Partnership with LGUs
• Microinsurance Conferences
• IIAP Seminars on Microinsurance
National Strategy
Regulatory Framework
Financial Literacy
Alternative Dispute
Resolution Framework
WHAT PIRA HAS DONE
BEFORE 2009
• Only MBA's have microinsurance
• No microinsurance agent category
• Only 3.1 million people have
microinsurance
END OF 2012
• 35 insurance companies have
microinsurance
• IC has approved 80 microinsurance
products
• 17 new MBA's licensed to offer
microinsurance
• IC has licensed 124 microinsurance agents,
34 of which are rural banks • More than 12 million people
have microinsurance
SUCCESS STORY
YOLANDA EXPERIENCE
300 kph winds, 6 landfalls
Affected people: 17 milion
people in 9 regions
Deaths: 6,300
Missing: 1,061
Injured: 28,689
DAMAGE: P39 BILLION
YOLANDA DEATH TOLL
SOURCE: NDRRMC
YOLANDA DAMAGES
SOURCE: NDRRMC
INSURED LOSSES
$500 million (P21 billion)
In PHP
Agriculture 19,559,379,136.11
Infrastructure 20,262,118,716.06
Total damages 39,821,497,852.17
WHAT MICROINSURANCE DID
• Used satellite imaging and crisis
maps to assess claims.
• Participated in “Agarang Proseso,
Benepisyong Sigurado” remote
claims office in Tacloban.
• Paid out P500 million worth of claims
within 10 days after Yolanda struck
WHAT MICROINSURANCE DID
OPPORTUNITIES
• More Filipinos are now conscious of
risks and the importance of being
insured.
• IC has relaxed requirements for
microinsurance companies, agents,
and products.
• IC has set up alternative dispute
resolutions for microinsurance.
CHALLENGES
• Climate change is getting worse
every year.
• Majority of Filipinos still rely on luck
and view insurance negatively.
• Insurance companies suffered badly
from Yolanda.
• High administrative costs hinder
development of new products.
CHALLENGES
Community-based &
Highly-clustered
Community-based &
Highly-clustered
Insurance Awareness
↓
SAVINGS & CREDIT
Simple & Transparent
Products Calamities
Technology
↓
Simplification & Cost-efficiency
WHAT WE WANT TO DO
Community-based &
Highly-clustered
Encourage more participation
from members
Continuous support to
Microinsurance Projects and
PPPs
Align support resources to
PIRA Technical Sub-Committee
on Microinsurance
PIRA Online Microinsurance
Library
Microinsurance seminars &
Financial Literacy Roadshows
PARTING SHOT
Microinsurance is a weapon against
poverty. The government and
private sector must work together to
develop it further.