Govt readies strategy for micro-insurance

THE Department of Finance will launch the National Strategy and the Regulatory Framework for Microinsurance on January 29 with the theme “Magpaseguro Para Protektado.” The milestone documents will outline the government’s policy thrusts and directions in providing the poor access to insurance products and services.

The project will create public awareness on the importance of providing appropriate risk protection for the poor through micro-insurance and will enjoin the private sector‘s participation in the delivery of simple and affordable insurance products for the low income and informal sectors of society.

The National Strategy for Microinsurance defines the objectives, the roles of the various stakeholders and the key strategies to be pursued in enhancing access to insurance of the poor.

It also discusses health insurance for the poor in the context of social protection. Strategies to encourage complementation of the products of PhilHealth by the private sector are also discussed. The strategy paper also provides directions toward mainstreaming informal insurance and insurance-like activities, as well as the promotion of public awareness and financial literacy.

The Regulatory Framework for Microinsurance, on the other hand, establishes the policy and regulatory environment that will encourage, enhance and facilitate the safe and sound provision of microinsurance products and services by the private sector. It also identifies and promotes a system that will protect the rights and privileges of those who are insured and ultimately enhance trust and confidence in the insurance industry and other providers of insurance-like and similar products and services.

The National Strategy and Regulatory Framework were crafted by technical working groups formed by the Finance department and have undergone a series of regional consultations nationwide in 2009.

It was approved by members of a steering committee comprised of representatives from the Finance department, Insurance Commission, Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, National Anti-Poverty Commission and Phil-Health in a meeting held on December 11, 2009.

The Asian Development Bank and the German Technical Cooperation are providing technical assistance to the Finance department for the development of the micro-insurance market in the Philippines.

The assistance will focus on the establishment of the appropriate policy and regulatory environment, building capacities of both regulators and providers in regulating and providing micro-in-surance services, as well as product development and financial literacy for both providers and clients of micro-insurance. –LAILANY P. GOMEZ REPORTER, Manila Times