MANILA, Philippines - The Department of Finance (DOF) is preparing a blueprint that would regulate the microinsurance industry in the country with the aim of protecting consumers and improving people’s access to micro financing.
As such, the department is set to come out with the National Strategy and the Regulatory Framework for Microinsurance on Jan. 29.
Under the proposed blueprint, various stakeholders would implement strategies to enhance people’s access to microinsurance.
It also discusses health insurance for the poor in the context of social protection, particularly strategies to encourage complementation of the products of the Philippine Health Insurance Corp. (Philhealth) by the private sector.
Furthermore, the government through the proposed blueprint, aims to streamline informal insurance and insurance-like activities and the promotion of public awareness and financial literacy.
The government would establish 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 on the insurance industry and other providers of insurance-like and other similar products and services,” the department said.
The National Strategy and Regulatory Framework were crafted by technical working groups formed by the DOF and have undergone a series of regional consultations last year.
It was approved by members of a Steering Committee comprised of representatives from the DOF, Insurance Commission, Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, National Anti-Poverty Commission and the Philhealth in a meeting last month.
The upcoming launch of the framework on Jan. 29, is the culmination of the observance of the Microinsurance Month.
Under Presidential Proclamation 1212, January is declared as
Microinsurance Month and appointed the Insurance Commission (IC) and the DOF as the lead agencies.
In support of the government initiative, the Asian Development Bank (ADB) and the German Technical Cooperation (GTZ) is providing technical assistance to the DOF for the development of the microinsurance market in the Philippines.
The assistance focuses on the establishment of the appropriate policy and regulatory environment; building capacities of both regulators and providers in regulating and providing microinsurance services; product development and financial literacy for both providers and clients of microinsurance.