DOF: 28M low-income Pinoys covered by microinsurance as of end-2014

The National Strategy for Microinsurance (NSM) seems to be working, as coverage in the Philippines rose to 28.1 percent last year from 20 percent in 2012 to reflect an annual growth rate of 18.4 percent in terms of the number of people covered.

The strategy made financial services available and accessible to all, including the low-income sector, the Department of Finance (DOF), which created NSM, said on Monday.

The importance of microinsurance was highlighted in the aftermath of Typhoon Yolanda (international name: Haiyan).

According to the DOF, microinsurance providers were able to infuse close to half a billion pesos in typhoon-affected areas after paying out damage claims within the required 10-day period.

“We are seeing how microinsurance works in the Philippines: not only to protect the most vulnerable, but also our sustained and inclusive growth trajectory… When the most vulnerable wins, we all win,” Finance Secretary Cesar Purisima said.

Since the strategy was launched, more than 50 licensed insurance entities and 89 Insurance Commission-approved products have come about and covered 28 million Filipinos

“Boosting microinsurance coverage rates is an effective anti-poverty measure: we minimize vulnerabilities of the poor and enable them to rebuild the pieces of their dreams that crack when disaster hits,” Finance Undersecretary Gil Beltran said.

Designed for the low-income sector, the amount of microinsurance premiums, contributions, and fees per day does not exceed 7.5 percent of the current minimum wage rate for non-agricultural workers in Metro Manila. – Kathrina Charmaine Alvarez/VS, GMA News

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