Government, private sector ink microinsurance manifesto

MANILA, Philippines - A manifesto outlining the country’s masterplan for microinsurance was launched recently involving six key government agencies.

The one-page document spells out the country’s goals for insuring low-income Filipinos as protection for risks brought about by climate change.

Finance Undersecretary Gil Beltran said that microinsurance is one of the best tool for poor countrymen to help them adapt to climate change.

“With microinsurance, they have a better chance of recovering from financial shocks caused by typhoons, floods and other natural or man-made calamities,” he added.

Microinsurance is insurance sold in sachet form. It cost as low as P25 and provide payouts as low as P5,000. It sold to farmers, fisherfolk, vendors, and other low-income groups.

Beltran said the signing of the manifesto signals a more active cooperation among government agencies, and between government and the private sector for the continued development of microinsurance.

Aside from the Department of Finance, the agencies that signed the manifesto were the Insurance Commission, the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, and the Climate Change Commission.

Representatives from the Japanese and German governments as well as more than 200 private companies with microinsurance products witnessed the signing.

Beltran added that the number of Filipinos with microinsurance has already grown tremendously from a low of three million in 2008 to unofficially 28 million as of end of 2014.

This is the reason why the Philippines now leads Asia Oceania in the percentage of population with microinsurance.

He also cited the P700 million paid by microinsurance for those who suffered from Typhoon Yolanda, was the highest microinsurance payout for a single incident so far.

Yet despite these achievements, there was still so much work to do.

“More than 80 percent of the population is at risk of the negative impact of climate change. We must ensure that all of them are protected,” he said.