MANILA, Philippines - The Insurance Commission (IC) and the pre-need companies are working on introducing micro pre-need products by the end of 2015.
The proposed micro pre-need products are already up for approval, said IC Commissioner Emmanuel Dooc.
“We will see the sale of these products within the year,” Dooc told reporters in a press briefing yesterday.
The approval of the new pre-need products still hinges on the acceptance of the industry of an IC-proposed regulatory framework similar to the national strategy on microinsurance signed in December 2009.
IC Microinsurance Division chief Rosalina V. Bactol said they would consult with the Philippine Federation of Pre-Need Plan Companies this week to finalize and schedule its immediate implementation.
Pre-need products include pension, memorial and education. Payment for pre-need products are generally fixed for five years, either quarterly, semi-annually and annually.
Bactol said the mode of payment for the micro pre-need products would be monthly but still payable in five years.
There are 16 pre-need companies still operating, the most popular and profitable of which is St. Peter Life Plan Inc. It has only one product – memorial – but has developed ancillary such as the innovative online “burol” services.
Only six companies still sell education plans, while 11 have pension plans.
The IC official said the micro products would likely be pension and memorial, “but there is a plan to introduce another for education as there is still demand.”
Meanwhile, the second tranche of payments to the educational plan holders of Prudentialife Plans Inc. (PPI), has been set late this month. These payments forms part of the liquidation process of the pre-need company.
“The claiming period starts on Sept. 21, 2015 until Nov. 13, 2015 based on the schedule published in the website of the Commission,” Dooc said.
The list in the website is according to the planholders specific schedules for claiming, which in turn is based on the amount of the checks.