The Philippine Insurance Commission and the Department of Finance – National Credit Council today inked a partnership with German International Cooperation (GIZ) to sustain the push for microinsurance in the country.
Under the new program Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia), the three parties will be cooperating to further enhance the operating environment of microinsurance in the Philippines. The partnership will focus on policy and regulatory enhancements on such themes as alternative disputes resolution (ADR), index-based and technology-based insurance, micro-small-and-medium sized enterprises (MSMEs) and disaster mitigation and management.
Insurance Commissioner Emmanuel Dooc stated that from 2011 to 2012, life premium production grew from PhP86 to PhP120 billion. He is optimistic that the partnership for microinsurance can contribute to life premium incomes reaching PhP150 billion soon.
This renewal of commitment is an offshoot of gains reaped through a previous GIZ microinsurance program that provided assistance from 2009 to 2012. The GIZ- Microinsurance Innovations Program for Social Security (MIPSS) supported the creation of the national strategy and the financial literacy roadmap for microinsurance and the alternative disputes resolution framework. Together with the Asian Development Bank, the regulatory framework for microinsurance was also developed in 2010.
RFPI Asia is the follow-up three-year regional program that will draw on the Philippine experience of enhancing the regulatory conditions for microinsurance. In many Asian countries, enabling environments that promote microinsurance consumer protection and market development are still lacking. RFPI Asia will serve as a knowledge-sharing and capacity-building platform to help insurance regulatory authorities of selected Asian countries respond to their microinsurance needs and gaps.
“RFPI Asia will showcase the Philippine experience to inspire other Asian insurance regulators in fostering a demand-driven microinsurance market development,” relayed Program Director Dr. Antonis Malagardis.
DOF Undersecretary Gil Beltran stated at the event that the continued cooperation to promote microinsurance will hopefully contribute to keeping, and even exceeding, the 6.6% economic growth of the country.