MANILA, Philippines — CARD Pioneer Microinsurance Inc. (CPMI) has partnered with global accelerator Microinsurance Master to share best practices in protecting low-income households through simple, affordable and accessible insurance solutions.
Lorenzo Chan Jr., head of the Pioneer Group, said microinsurance is such an important tool for low-income families in emerging markets and developing countries like the Philippines, where almost 24 percent of the population are engaged in agriculture.
Data showed the damage to the agriculture sector caused by typhoons reached P304.25 billion between 2010 and 2020. In 2020 alone, typhoons wiped out P14.25 billion worth of agricultural goods.
“By making insurance products more affordable and accessible, you bring value to your customers by offering a solution to those who need it most,” Chan said.
Chan also stressed the role of public-private partnerships in making social development more inclusive through microinsurance.
Early this year, state-run Philippine Crop Insurance Corp. and CPMI entered a risk-sharing program that would benefit the agriculture sector by protecting them from risks such as flood, typhoon, drought, plant diseases, and pest infestation, among others.
This covers crops ranging from rice and corn to coffee, banana, sugar etc.
In an earlier global forum, Chan said the public and private partnership in agri-insurance is the first in the Philippine market.
“An effective collaboration between the two sectors is vital to provide sustainable and effective insurance products to farmers and ultimately help those who provide food for our tables manage the risks they face,” Chan said.
About 20 microinsurance practitioners from 14 different countries are attending the program to learn from Pioneer’s experience in growing its market from 270,000 to over 18 million enrollments in less than a decade. This is the Pioneer Group’s third time to host the Microinsurance Master in the Philippines.
CPMI is a joint venture between the Pioneer Group and CARD MRI, the country’s largest microfinance institution, to principally address the range of protection needs of the low-income population, including but not limited to coverage for calamity, agriculture, business interruption, health, accident and loss of life.
CARD MRI founder Aris Alip said the fulfillment of the company’s shared vision to eradicate poverty starts from providing Filipinos in the low income bracket affordable and accessible insurance.
“By understanding their needs and filling the gaps, we were able to not only grow our market but also to protect more Filipinos from unforeseen and unavoidable risks,” Alip said.