Number of microinsurance policyholders to double by 2015

Business World - Efforts of the government and the private insurance sector and the presence of “adequate” distribution channels are seen to increase the number of microinsurance policyholders to about seven million by 2015.

“The contribution of the private insurance sector and the government and the use of adequate distribution channels such as community-based organizations and rural banks is approximated to increase the number of microinsurance policyholders to seven million by 2015 from three million in 2010,” Antonis Malagardis, program manager of German Agency for International Cooperation (GIZ) Microinsurance Innovations Program for Social Security, told BusinessWorld in an interview last week.

“Well-developed distribution channels are crucial to bringing the microinsurance products and services to the low-income people,” he said.

There are currently eight microinsurance providers from the nonlife industry, seven from the life industry and 15 from mutual benefit associations.

Mr. Malagardis said the figure could be achieved through the government’s continued promotion of microinsurance through the financial literacy campaign being conducted by the Department of Finance in the country.

The Insurance Commission (IC) and the GIZ are conducting financial literacy campaign in the country until August.

For his part, Michael J. McCord, president of the Microinsurance Centre, LLC, in a statement released over the weekend by Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS), said that technology and rural banks will serve as “key distribution points” to increase the presence of microinsurance in the country.

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