Cebuana Lhuillier expands microinsurance services

MANILA, Philippines - Cebuana Lhuillier Insurance Solutions (CLIS) has sold 12 million microinsurance policies since 2004, and it forecasts to sell an average of 1.2 million every month this year with the introduction of Alagang Cebuana Plus.

CLIS, a subsidiary of PJLI Lhuillier Inc., sells the microinsurance products of Malayan Insurance Inc., the most dominant player in the country’s non-life insurance industry.

Data from the Insurance Commission (IC) indicates that there are nine million live microinsurance policies-in-force.

Alagang Cebuana Plus is worth P25 with a life span of four months or theoretically, P75 for a one-year period.

The low-cost microinsurance has a coverage of P20,000 for accidental death/dismemberment benefits and another P5,000 fire-cash aid.

Since the insurance product is a non-life insurance product, it is classified under personal accident (PA) or a low-cost hybrid of fire insurance.

CLIS also launched the Microinsurance-on-Wheels, which aims to heighten microinsurance awareness among the low-income and vulnerable sectors and make affordable and quality insurance protection available to ordinary Filipinos using eight mobile hubs that will travel around the country. 

“This initiative will reach out to poor Filipinos, especially those from far-flung areas, to inform and educate them on the importance and advantages of microinsurance thus complementing the global campaign to promote microinsurance as an effective tool for social protection and financial inclusion,” CLIS general manager Jonathan Batangan said in a press briefing.

Batangan admitted that the claim amounts were small by life insurance standards but it will go a long way for the poor and underprivileged.

“Ordinary people see ‘insurance’ as something that only rich people can afford. We are offering ordinary Filipinos affordable insurance with the added benefits of accessibility, reliability and convenience,” he added.

The eight mobile hubs started roaming around Metro Manila, Cavite, Laguna and Batangas as early as May this year. By 2014, the Microinsurance-on-Wheels will roam on key locations in Metro Manila, South Luzon, Central Luzon, North Luzon, Visayas and Mindanao.

CLIS has settled more than P20 million claims last year.

The 24-hour Claims Bayad Agad settlement system allows policyholders or their beneficiaries may get their claim proceeds from a Cebuana Lhuillier branch anywhere in the Philippines within 24 hours through Cebuana Lhuillier Pera Padala.

Batangan said they are also studying new products that will cover personal and flood, and personal and earthquake microinsurance products.

Malayan Insurance and the rest of the country’s non-life insurance industry are developing natural disaster insurance products. One product would cover all natural disasters while another would cover only earthquake.

Cebuana Lhuillier, also a subsidiary of PJLI Lhuillier, has more than 1,500 outlets nationwide. It has developed from a pawnshop to a multi-layer provider that offers bills payments, international and domestic money transfers (remittance service), airtime loading center, and cash-in, cash-out outlets of telcos.