CEBU, Philippines – The German Technical Corporation (GTZ) recently completed a workshop with key players in the micro-insurance industry in the Philippines aimed at strengthening the micro-insurance sector in the country.
Through the Micro- insurance Innovations Program for Social Security (MIPSS), GTZ in partnership with the Department of Finance-National Credit Council, introduced the operational 2009-2010 work plan to promote and further develop the micro-insurance industry of the country.
The recently concluded workshop grouped together 12 organizations that included the regulators of Insurance Commission (IC), Bangko Sentral Ng Pilipinas (BSP), Cooperative Development Authority (CDA), the Philippine Health Insurance Corporation (PhilHealth), and stakeholders from the private sector such as the Philippine Insurers and Reinsurers Association (PIRA), the Philippine Life Insurers Association (PLIA), and from the Cooperative Insurance Society represented by CLIMBS and CISP, the microinsurance resource center like RAMANSI, the Butuan Chamber of Commerce and Industry and the Micro-insurance Agency of the Philippines (MicroEnsure).
IC circular defines micro-insurance as “the insurance business activity of providing specific insurance products that meet the needs of the disadvantaged for risk protection and relief against distress or misfortune.”
It further defines micro-insurance product as “an insurance policy whereby the monthly premium does not exceed P1,050 and the maximum amount of life insurance coverage is not more than P175,000”.
According to GTZ, MIPSS targets to develop a national concept on Microinsurance in the context of social protection; develop a national strategy on consumer education and financial literacy; create a handbook and training manual on consumer education and protection; prepare a Risk-Based Capital system for Microinsurance Providers; develop innovative Microinsurance products including health insurance and develop innovative contract agreements to enhance channels of Microinsurance distribution.
An MIPSS office was recently opened in Manila at the Insurance Commission (IC) to provide opportunity for GTZ and IC to closely work on strategic issues concerning Microinsurance development in the country.
MIPSS, a development cooperation project between the Republic of the Philippines and the Federal Republic of Germany, aims to improve the protection from risks of the poor people of the Philippines.
MIPSS contributes to the efforts of the Philippine Government to improve the framework conditions for Microinsurance development in the country. It also is implemented in partnership with the Department of Finance through the National Credit Council and the IC.
GTZ, the German Government’s international development enterprise, has cooperated with the Philippine partners for more than 33 years. We strengthen the capacity of people and institutions to improve the lives of Filipinos in this generation and generations to come.