German Development Cooperation (GIZ) and Insurance Institute for Asia and the Pacific (IIAP), sole insurance training institution in the Philippines, formally sealed last week the microinsurance training partnership agreement.
The partnership combines four decades of expertise in capacity development. Predominantly, the agreement will mainstream inclusive insurance (II) or microinsurance (MI) through capacity building programs to enhance the capacities of insurance regulators, companies and support institutions.
Through the partnership, GIZ responds to long drawn out demands of ASEAN countries for local training platforms on microinsurance. Currently, there is no training institution that offers microinsurance training programs in the region.
In addition, the pioneering partnership will support the development of international and national experts on microinsurance or inclusive insurance who will serve as a “training pool” that can conduct specific inclusive insurance /microinsurance courses throughout Asia.
Dr. Antonis Malagardis, program director of Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia (RFPI Asia), the GIZ flagship program on inclusive insurance in Asia and the Pacific, and Mr. Januario Aliwalas, executive director of IIAP led the ceremonial signing in Makati.
Dr. Malagardis recognized that the partnership with IIAP comes at a most opportune time when both organizations are ready to connect and work together on something concrete such as capacity building. "We welcome this partnership to carry out the advocacy together. GIZ and IIAP share this multiplier role to reach out to our partner countries", Dr. Malagardis remarked.
Meanwhile, Mr. Aliwalas noted that the partnership established the role of IIAP as microinsurance training vehicle of GIZ. IIAP wants to offer relevant courses such as microinsurance to the Asian countries such as Nepal and Mongolia where RFPI Asia operates, same countries that IIAP is looking at as target markets.
The Philippines, along with China and India are important performers within the microinsurance sector based on the Landscape of Microinsurance in Asia and Oceania 2013 Report. The GIZ-released report was in collaboration with Munich Re Foundation and Microinsurance Network.
The key findings in the study revealed that although the number of people covered by microinsurance in Asia is substantially higher, only 4.3% of people are covered when compared to 4.4% in Africa and 7.6% in Latin America. India, for example, is ahead of other countries in terms of microinsurance outreach. However, when competed to its overall population, only 9% are covered. In comparison to the Philippines which is also a pioneer like India in formulating first-ever microinsurance-specific regulations for their insurance industries, Philippines has coverage ratio of 20.6%.
"Our experience and knowledge gained so far we can share with countries that would need training and education in microinsurance. This is what we wanted to do and with GIZ, we can do more and reach more countries", Mr. Aliwalas concluded.