The proclamation likewise designated the Insurance Commission (IC) and the Department of Finance (DOF) as the lead agencies and enjoining all in the government to "initiate and participate" in various activities.
Microinsurance refers to insurance business activity providing specific insurance products that meet the needs of the disadvantaged for risk protection and relief against distress and misfortune, such as accident insurance, life insurance and burial benefits whose premiums are made affordable to daily wage earners and other self-employed who earn less than the minimum wage. These are generally offered by insurance companies or mutual benefit associations which are all regulated and supervised by the IC.
The IC has already adopted a campaign called SEGURADO, or Solvency/Stability, Efficiency/Effectiveness, Good Governance, Understandable Coverage/Benefits, Risk Management, Accessibility/Affordability, Distribution/Development & Dividends and Outreach, to strengthen the micro-insurers.
IC Commissioner Evangeline Escobillo stressed that this was the agency’s response to the National Government’s campaign against poverty. "We will address poverty by giving the disadvantaged sector preferential access to social protection and low cost financial safety nets in partnership with the insurance industry," Escobillo said.
Recently, the IC went on a roadshow holding dialogues in Isabela and Nueva Ecija. It also assisted in the formation of a Micro Mutual Benefit Association in Virac, Catanduanes.