Insurers focus on microinsurance

MANILA, Philippines - Microinsurance will be one of the key topics of the Insurance Consciousness Week (ICW) from Oct. 26 to 30, to be co-promoted by the Philippine Insurers and Reinsurers Association (PIRA) and the Philippine Insurers Club (PIC).

PIRA chairman Michael Rellosa said microinsurance — or insurance for the poor and the marginalized — would be the main highlight of the ICW, which was declared 10 years ago by then President Joseph Estrada.

“Nature has once again reminded all us of the importance of being insured. Last year it was tropical storm Ondoy that flooded cars and houses. Now it’s typhoon Juan that devastated our farmlands. We really need to develop micro insurance to protect our poor countrymen who are exposed to various risks, including natural calamities,” Rellosa said.

He added that all over the world, insurance groups are looking at microinsurance as a tool to alleviate poverty. German reinsurance firm Munich Reinsurance Gmh (MunichRe), for one, is sponsoring the 6th International Microinsurance Conference which to be held in the Philippines next month.

The event is expected to draw at least 500 participants and over 80 speakers and facilitators from around the world. These participants include representatives from insurance and reinsurance companies, international organizations, non-government organizations (NGOs), development-aid agencies, the academe, policymakers, regulators and supervisors.

Rellosa said microinsurance is still facing various challenges in areas of distribution, claims handling and the lack of insurance literacy among the poor.

“Majority of our countrymen view insurance as an added expense when they should consider it as an investment and as a tool to manage the risks that they cannot handle. We need to educate them and the ICW is one way of reaching out to them,” he said.

Aside from the ICW and the Micro Insurance Conference, PIRA is also co-hosting the ASEAN Insurance Council meetings of insurance regulators and industry leaders from Southeast Asia. The association is also backing the Young ASEAN Managers Awards, which recognize the promising future leaders of the region.