Microinsurance providers posted higher premium collections in 2023, as more Filipinos sought affordable protection plans especially amid growing threats from climate change.
Total premiums collected under microinsurance policies amounted to P13.54 billion last year, a 17.35-percent increase from the amount generated in 2022, the Insurance Commission (IC) reported.
The IC attributed the performance to “across-the-board” jump in collections by mutual benefit associations (MBAs) and life and non-life insurance firms.
Microinsurance products offer financial protection to the low-income earners against various risks such as death, injury and damage to livelihood or property. Under this plan, premiums collection can be purchased for not more than 7.5 percent of the minimum wage in Metro Manila.
Microinsurance products include micro-life and health insurance, and micro-agricultural insurance. There are also micro pre-need products available, such as micro-memorial, educational, and pension plans.
As of 2023, the number of lives insured under such products reached 56.62 million.
Dissecting the IC’s report, MBAs received P7.5 billion in contributions, up by 10.75 percent year-on-year. That amount was collected from MBA clients that reached 28.6 million by the end of 2023.Life insurance firms saw premium collections jump by 14.4 percent to P3.7 billion, protecting the lives of 15.64 million Filipinos.
Lastly, non-life insurance providers collected P2.4 billion, up 51.51 percent and insuring 12.37 million lives.
For IC, financial instruments like microinsurance play a crucial role in improving Filipinos’ resilience against natural disasters.
The IC also sees microinsurance as an ideal product to broaden access to financial services in the country.
That said, the regulator was targeting to increase the number of microinsurance providers. As of the third quarter last year, the latest data available, there were 49 microinsurance companies in the Philippines. — Ian Nicolas P. Cigaral