Microinsurance Framework Presentation Diamond Hotel 01 31-12.ppt

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Highlights the key elements of the National Strategy and Regulatory Framework on Microinsurance in the Philippines. Presented during the Advocacy Seminar on Microinsurance held on January 27, 2012 at the Diamond Hotel, Manila.

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Microinsurance Framework Presentation Diamond Hotel 01 31-12.ppt

  1. 1. FINANCIAL INCLUSION AND MICROINSURANCE – THE FRAMEWORKFINANCIAL LITERACY ADVOCACY SEMINAR ONMICROINSURANCEVenueDate
  2. 2. PAST GOVERNMENT INITIATIVES 1999– 2010 1999 – Laws, Rules and Rationalizati Regulation 1997 – on of National Government s issued Strategy and Directed Regulatory Credit1993 - Framework ProgramsNational forCredit MicrofinanceCouncil
  3. 3. WHERE ARE WE NOW Few large • 1,410 MFIs MFIs with • 7 million clients outreach of • Commercialless than half banks providing a million wholesale funds clients in to retail MFIs 1997
  4. 4. ECONOMIST INTELLIGENCE UNIT STUDY ON MICROFINANCE 2010• Ranks the Philippines among 54 countries: 2nd in overall 1st in Regulatory microfinance Framework business environment 4th in 18th in Institutional Investment Development climate
  5. 5. MAJOR FINANCIAL PRODUCTS OF FINANCIAL INCLUSION Payment Credit Savings Transfers Remittances Insurance
  6. 6. POOR INSURANCE PENETRATION IN LOW INCOME SECTORABSENCE OF POLICY INAPPROPRIATE LACK OF AND REGULATORY PRODUCTS AWARENESS FRAMEWORK• Vague government • Not tailor-fitted • Distrust of insurance policy direction • Unaffordable providers• Unclear regulations • Complex and • “Leave it to destiny” and guidelines on complicated contracts mentality microinsurance • Cumbersome • No immediate benefits• Hesitant providers requirements • Additional financial burden
  7. 7. AFTER MICROCREDIT, NOW MICROINSURANCE• Work has begun Microinsurance National with private Strategy and Regulatory sector and Framework launched technical assistance support from the Asian Government Circulars on Development Microinsurance Issued Bank (ADB) and the German International Cooperation Microinsurance Financial Performance Product Literacy and (GIZ) Standards Development Advocacy
  8. 8. INCREASING SUPPLY DELIVERY ENABLINGPROVIDERS MECHANISMS ENVIRONMENT Commercial Non-traditional Relaxed entry Insurers mechanisms (e.g. requirements pawnshops, e- Coop Insurance commerce) Societies Conducive private Partnerships and sector participation Mutual Benefit Tie-ups with Associations community-based organizations Clear rules and Pre-Need regulations Companies Entities as Microinsurance Good governance HMOs agents/brokers and Transparency
  9. 9. INCREASING DEMAND FINANCIALINNOVATIVE CLIENT LITERACY PRODUCTS PROTECTION CAMPAIGNS Affordable Comprehensive Formalization of encompassing all 9 informal insurance stakeholders providers Simple contracts Redress and Cover all 16 grievance regional areas Tailor-fitted to mechanisms needs Use of AlternativeRelaxed Terms and Learning centers Dispute Resolution Conditions
  10. 10. ROLE OF THE GOVERNMENT Other National Policy and Local Agencies and Regulatory Government Instrumentaliti Agencies Units (LGUs) es• Enabling policy • Networks and • Collaboration and regulatory linkages with with private environment microinsuranc sector• Measures e providers providers supportive of • Inclusion of • Institutionalizat financial Micoinsurance ion of Redress inclusion in programs Mechanisms• Guidelines for • Basic support • Public mainstreaming services awareness informal and education insurance
  11. 11. ROLE OF THE PRIVATE SECTOR PRODUCT MARKET FINANCIALINNOVATION DEEPENING LITERACY• Design and • Expand • Educate the provide channels for masses on simple, the safe, the affordable efficient and importance and effective of risk accessible delivery protection innovative with fast and build microinsuran claims trust among ce products payments the general public
  12. 12. MOVING FORWARD PROMOTE SUPPORT BUILD ON THEPUBLIC-PRIVATE PRODUCT CONDUCIVE SECTOR INNOVATIONS POLICY ANDPARTNERSHIPS THROUGH REGULATORYBY CONSENSUS RELAXED ENVIRONMENT BUILDING REGULATIONS BUILD CAPACITIES INCREASE PUBLIC OF PROVIDERS AWARENESS ON AND DELIVERY INPORTANCE OF CHANNELS RISK PROTECTION
  13. 13. Thank you!!!

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