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.

1. FINANCIAL
INCLUSION AND
MICROINSURANCE
– THE FRAMEWORK
FINANCIAL LITERACY ADVOCACY SEMINAR ON
MICROINSURANCE
Venue
Date

2. PAST GOVERNMENT
INITIATIVES
1999– 2010
1999 – Laws, Rules
and
Rationalizati Regulation
1997 – on of
National Government s issued
Strategy and Directed
Regulatory Credit
1993 - Framework Programs
National for
Credit Microfinance
Council

3. WHERE ARE WE NOW
Few large • 1,410 MFIs
MFIs with • 7 million clients
outreach of • Commercial
less than half banks providing
a million wholesale funds
clients in to retail MFIs
1997

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. MAJOR FINANCIAL PRODUCTS
OF FINANCIAL INCLUSION
Payment
Credit Savings
Transfers
Remittances Insurance

6. POOR INSURANCE PENETRATION IN
LOW INCOME SECTOR
ABSENCE 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. 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. INCREASING SUPPLY
DELIVERY ENABLING
PROVIDERS 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. INCREASING DEMAND
FINANCIAL
INNOVATIVE 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 Alternative
Relaxed Terms and Learning centers
Dispute Resolution
Conditions

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. ROLE OF THE PRIVATE
SECTOR
PRODUCT MARKET FINANCIAL
INNOVATION 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. MOVING FORWARD
PROMOTE SUPPORT
BUILD ON THE
PUBLIC-PRIVATE PRODUCT
CONDUCIVE
SECTOR INNOVATIONS
POLICY AND
PARTNERSHIPS THROUGH
REGULATORY
BY CONSENSUS RELAXED
ENVIRONMENT
BUILDING REGULATIONS
BUILD CAPACITIES INCREASE PUBLIC
OF PROVIDERS AWARENESS ON
AND DELIVERY INPORTANCE OF
CHANNELS RISK PROTECTION

15. Thank you!!!