By Iris C. Gonzales (The Philippine Star) Updated October 30, 2010 12:00 AM Comments (0)
MANILA, Philippines - The Philippines placed second in a study conducted by the Economic Intelligence Unit dubbed as Global Microscope on microfinance business environment.
The study was conducted among 54 developing countries. Among the different developing countries, Peru retained its position as the global leader on microfinance bureau’s environment.
According to the study, for the second year now, the Philippines and Bolivia top the Economic Intelligence Unit’s Global Microscope index. “The Philippines and Bolivia swapped positions and finished second and third, respectively, this year. Two newcomers, Pakistan and Kenya, joined the top 10, displacing Nicaragua and Uganda,” the study noted.
The three best-performing countries score especially well in two of the main index categories: regulatory framework and institutional development.
“The Philippines enjoys the best overall regulatory environment for microfinance, alongside Cambodia, which does not make the top 10 overall, and Pakistan which does,” it said.
The study noted key changes in the country’s microfinance environment. It noted that microfinance institutions in the Philippines or MFIs are able to offer a variety of services, and many do.
“Regulated MFIs can accept deposits, and those linked to the international payments system can accept remittances,” it said.
In terms of choices, clients in the Philippines have a wide choice of service providers, including local and national institutions.
Furthermore, the study noted that in 2010, the Bangko Sentral ng Pilipinas (BSP) began allowing rural, co-operative, and thrift banks to sell authorized micro-insurance products.
These institutions can be licensed as micro-insurance agents, and can only sell policies up to P190,000 or $4,000 under certain provisions, it noted.
The study also took note of the fact that in April 2010 the BSP issued a circular that set the rules for accrediting microfinance rating agencies, a move seen as encouraging local MFIs to be rated.
“Until recently, it was rare for microfinance banks (MFBs), rural banks, or thrift banks with microfinance operations to become externally rated,” the study said.
In 2010, BSP issued rules on the extension of housing microfinance and eased requirements for micro-lending in agriculture which the study said also contributed to the improvement in the microfinance environment.
At the same time, the study underscored the need to put in place a credit information system.
“The Credit Information System Act signed into law in September 2008 requires all regulated entities to submit positive and negative information to a new credit bureau under the Securities and Exchange Commission (SEC). However, the establishment of the Central Credit Information Corporation (CCIC) has not yet resulted in the operation of a functioning, active credit bureau, despite the fact that implementing rules and regulations (IRR) were approved in May 2009. According to local press, operations are now expected to begin in the third quarter of 2010,” it said
Saturday, October 30, 2010
Wednesday, October 27, 2010
Will the Government Spending Review impact your tenants?
HomeLet the Landlord and Tenant property insurance company has just sent out it's latest news letter to aagents. jml Property Services have been HomeLet agents for many years now.
The Coalition Government has put deficit reduction at the heart of its economic policy, arguing that the poor state of the UK's public finances poses a greater threat to economic recovery than cuts in spending.
According to the independent Institute for Fiscal Studies (IFS) the government's Budget measures will cut 77% of the £86bn through spending cuts, and the remaining 23% through tax increases. These cuts are likely to have a huge impact in most areas of the UK.
In cities like Liverpool the problem is exaggerated by the fact that almost 40% of all employment is in the public sector which faces the most change, this is an additional burden on the economy of Liverpool – hindering its recovery from the effects of the worst recession in living memory.
The number of tenants defaulting on their rent is likely to soar following minimal change in the rate of unemployment which is currently standing at 7.8% and additional job cuts which are likely to feature as a result of public sector spending cuts.
Commenting on the cuts HomeLet Managing Director John Boyle, said “Unemployment will get worse over the next few months as the affects of spending cuts start to have an impact on local economies. This could impact many tenants’ ability to pay the rent. For many landlords, especially those with geared investments the risk of rental arrears is a real worry.
“In 2009 we paid out £3m in Rent Guarantee claims and I expect this figure to rise in 2010, and in 2011. Landlords who are concerned about rent arrears need to talk to their local professional letting agent about comprehensive referencing and rent protection insurance.”
For more information about HomeLet Insurance Products Click Here
Clocks go back this weekend make sure your insurance is up to date
As the clocks are going back this weekend and the nights are getting longer, it is important that property owners turn their lights on and protect their properties from burglars.
During the winter months properties left in darkness in a street where all the other properties have lights on are much more likely to be targeted by criminals.
Install lights with plug-in automatic timer controls - timer lights convince any potential burglar that you're at home.
Have the lights switching themselves on and off in the bedroom, hall, kitchen, lounge and bathroom.
Make your home look occupied when you're out. Set the lighting timers to come on when it gets dark.
Switch lights on earlier (late afternoon/early evening) during the winter months when it gets dark earlier. In winter, it can get dark in the afternoon.
Another good idea to use a plug-in timer on your radio to make it sound as if someone is at home. Choose a radio station that has more talking than music like Radio 5 Live for excample.
If you're out or going away, ask a trusted neighbour to close your curtains for you.
If your curtains are not going to be drawn while you are out, consider using timer switches on low table lamps around the room, rather than the main ceiling light.
Install sensor lights on external walls of your property.
Make sure your windows and doors have adequate locks, you do not keep sat navs in view in a parked car or other valuables.
Keep your insurance up to date and if you are looking for Property Motor Travel Pet insurance and a lot more there are a lot of companies advertising on the jml Insurance Promitional site HERE
6th International Microinsurance Conference - Manila, the Philippines
Munich/Luxembourg – With the growing recognition that providing insurance services for the low-income populations plays a significant role in the achieving the United Nation’s Millennium Development Goals (MGDs), the 6th International Microinsurance Conference will take place this year in Manila, the Philippines. The conference, which will run between 9 – 11 November 2010, will host around 500 participants to discuss the solutions and challenges microinsurance faces in helping to achieve these goals.
The conference, which is organised by the Munich Re Foundation and the Microinsurance Network with support from GTZ/BMZ, the Department of Finance in the Philippines and Georgia State University’s Center for the Economic Analysis of Risk, will bring together representatives from across the microinsurance sector including insurance and reinsurance companies, international organisations, NGOs, development-aid agencies, academics, policymakers, regulators and supervisors.
Secretary of Finance Cesar V. Purisima, is expected to attend the opening of the conference confirming that microinsurance is of great importance to the government of the Philippines. The Secretary affirmed that, “through a strong public-private sector collaboration, microinsurance will be in the forefront of the Philippine Government’s efforts to provide our low-income sector and the poor protection from risks, providing them the means to rebuild their lives when unfortunate and unforeseen events occur.”
The agenda for the conference was put together following a call for proposals in March 2010 by a panel of renown experts and representatives from all corners of the microinsurance world. The focus will be on independent case studies and academic research on innovative and sustainable microinsurance programmes and/or products, focusing on key issues and challenges. These include new distribution channels, claims handling mechanisms, strategies for enabling the environment to develop microinsurance, solutions for natural disasters and finally insurance literacy.
Of the many challenges the sector faces, insurance literacy is currently recognised as one of the most important hurdles to overcome. Educating the clients on the benefits of insurance is an indispensible ingredient to the success of any microinsurance programme and with the publication of a number of recent case studies, most notably a landscape study by the Insurance Education Working Group of the Microinsurance Network; good practices are emerging slowly, some of which will be presented during the conference.
The 6th International Microinsurance Conference, the longest running and most attended microinsurance conference there is, offers an indispensible added value to all those that attend and to the sector as a whole. From the first conference in Munich in 2005 through to the fifth one in Dakar (2009), which was the largest microinsurance conference ever with an attendance of over 450 representatives from 63 countries, the International Microinsurance Conference continues to provide a unique opportunity for attendees to move the sector forward though collaboration and communication.
The 6th International Microinsurance Conference in Manila, as Dirk Reinhard, Munich Re Foundation and Chairman of the Conference Steering Committee, points out “has taken on even more importance with the G20’s Financial Inclusion Experts Group (FIEG) identifying insurance as one of the fundamental financial services that requires extending in their nine Principles for Innovative Financial Inclusion”.
Over the last few years, microinsurance in the Philippines has been on the increase compared to the rest of world. But with a population of around 92 million and only 13.92 % have life insurance, penetration is still very low. Efforts are ongoing to change this though. The Department of Finance and the Insurance Commission recenltly formulated the National Strategy and Regulatory Framework for Microinsurance. Among others, it promotes greater access by the poor to small, affordable microinsurance products and requires the formalisation of all informal schemes of microinsurance provision by 2012 to ensure that clients are adequately protected. The Philippine Insurers and Reinsurers Association recently pledged to inform some 27 million Filipinos on the merits of securing insurance policies in support of the Government’s financial literacy campaign.
About the International Microinsurance Conference
Initiated and organised by the Munich Re Foundation in collaboration with the Microinsurance Network, the aim of the conference is to be the international platform where experts share information, knowledge and experience in microinsurance in order to overcome existing challenges.
About Munich Re Foundation
The Munich Re Foundation seeks to provide answers to overarching questions from a variety of perspectives in order to find sustainable solutions in the area of risk prevention. Questions concerning development are linked to risk management and poverty reduction.
For more information:
• Contact Dirk Reinhard/Martina Mayerhofer (info@munichre-foundation.org)
• Visit www.munichre-foundation.org
About the Microinsurance Network
The Microinsurance Network is a network of organisations involved in microinsurance. Its mission is to promote the development and proliferation of good-value insurance products for people on low-income by providing a platform for information sharing and stakeholder coordination.
For more information:
• Contact Matthew Genazzini (matthew.ada@microfinance.lu)
Visit www.microinsurancenetwork.org
The conference, which is organised by the Munich Re Foundation and the Microinsurance Network with support from GTZ/BMZ, the Department of Finance in the Philippines and Georgia State University’s Center for the Economic Analysis of Risk, will bring together representatives from across the microinsurance sector including insurance and reinsurance companies, international organisations, NGOs, development-aid agencies, academics, policymakers, regulators and supervisors.
Secretary of Finance Cesar V. Purisima, is expected to attend the opening of the conference confirming that microinsurance is of great importance to the government of the Philippines. The Secretary affirmed that, “through a strong public-private sector collaboration, microinsurance will be in the forefront of the Philippine Government’s efforts to provide our low-income sector and the poor protection from risks, providing them the means to rebuild their lives when unfortunate and unforeseen events occur.”
The agenda for the conference was put together following a call for proposals in March 2010 by a panel of renown experts and representatives from all corners of the microinsurance world. The focus will be on independent case studies and academic research on innovative and sustainable microinsurance programmes and/or products, focusing on key issues and challenges. These include new distribution channels, claims handling mechanisms, strategies for enabling the environment to develop microinsurance, solutions for natural disasters and finally insurance literacy.
Of the many challenges the sector faces, insurance literacy is currently recognised as one of the most important hurdles to overcome. Educating the clients on the benefits of insurance is an indispensible ingredient to the success of any microinsurance programme and with the publication of a number of recent case studies, most notably a landscape study by the Insurance Education Working Group of the Microinsurance Network; good practices are emerging slowly, some of which will be presented during the conference.
The 6th International Microinsurance Conference, the longest running and most attended microinsurance conference there is, offers an indispensible added value to all those that attend and to the sector as a whole. From the first conference in Munich in 2005 through to the fifth one in Dakar (2009), which was the largest microinsurance conference ever with an attendance of over 450 representatives from 63 countries, the International Microinsurance Conference continues to provide a unique opportunity for attendees to move the sector forward though collaboration and communication.
The 6th International Microinsurance Conference in Manila, as Dirk Reinhard, Munich Re Foundation and Chairman of the Conference Steering Committee, points out “has taken on even more importance with the G20’s Financial Inclusion Experts Group (FIEG) identifying insurance as one of the fundamental financial services that requires extending in their nine Principles for Innovative Financial Inclusion”.
Over the last few years, microinsurance in the Philippines has been on the increase compared to the rest of world. But with a population of around 92 million and only 13.92 % have life insurance, penetration is still very low. Efforts are ongoing to change this though. The Department of Finance and the Insurance Commission recenltly formulated the National Strategy and Regulatory Framework for Microinsurance. Among others, it promotes greater access by the poor to small, affordable microinsurance products and requires the formalisation of all informal schemes of microinsurance provision by 2012 to ensure that clients are adequately protected. The Philippine Insurers and Reinsurers Association recently pledged to inform some 27 million Filipinos on the merits of securing insurance policies in support of the Government’s financial literacy campaign.
About the International Microinsurance Conference
Initiated and organised by the Munich Re Foundation in collaboration with the Microinsurance Network, the aim of the conference is to be the international platform where experts share information, knowledge and experience in microinsurance in order to overcome existing challenges.
About Munich Re Foundation
The Munich Re Foundation seeks to provide answers to overarching questions from a variety of perspectives in order to find sustainable solutions in the area of risk prevention. Questions concerning development are linked to risk management and poverty reduction.
For more information:
• Contact Dirk Reinhard/Martina Mayerhofer (info@munichre-foundation.org)
• Visit www.munichre-foundation.org
About the Microinsurance Network
The Microinsurance Network is a network of organisations involved in microinsurance. Its mission is to promote the development and proliferation of good-value insurance products for people on low-income by providing a platform for information sharing and stakeholder coordination.
For more information:
• Contact Matthew Genazzini (matthew.ada@microfinance.lu)
Visit www.microinsurancenetwork.org
Insurers focus on microinsurance
(The Philippine Star) Updated October 26, 2010 12:00 AM Comments (0) View comments
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
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
Munich Re Launches Its First Microinsurance Product for Cooperatives in the Philippines
October 11, 2010 by Microfinance Africa
Filed under MICROFINANCE AROUND THE WORLD
Leave a Comment
By Iris Lai, Insurancenewsnet.com -
Munich Re has rolled out its first microinsurance product in the Philippines to provide protection for the lending capacity of cooperatives to low-income groups against extreme weather events.
The loan protection microinsurance product was developed for Coop Life Insurance & Mutual Services, a cooperative life insurer for local cooperatives and members in the Philippines, in partnership with Deutsche Gesellschaft fur Technische Zusammenarbeit, a German government-owned enterprise for international sustainable development projects.
Munich Re is the sole reinsurer for this microinsurance product, distributed through more than 1,800 cooperatives in the Philippines. Coop Life is the composite insurance provider for cooperatives with products offered for life, property and health protection. It is also the primary insurer for local cooperatives and offers them portfolio protection.
The product will enable low-income households in the Philippines to receive benefits through their cooperative after devastating natural events. For the cooperatives, the microinsurance plan will guarantee liquidity of the loan portfolio and will provide quick payout via Coop Life, said Munich Re in a statement.
Munich Re is also looking into development of other new microinsurance products in the Philippines, said Thomas Mahl, business development manager at Munich Re Singapore. The partnership with GTZ is important to promote social responsibility for catastrophe protection in delivering benefits to the target group, he said.
The Philippines is highly exposed to extreme weather events such as typhoons, torrential rain and subsequent floods, creating financial risks to microfinancial institutions. Typhoon Morakot was among the top 10 largest global natural catastrophe in 2009, causing 614 deaths, US$1.6 billion in economic losses and US$110 million in insured losses, according to Munich Re.
Natural disasters interrupt the cash flow of cooperatives as member borrowers often cannot repay their loans, leading to insolvency of the cooperatives. In the Philippines, the cooperatives currently lend money at a higher interest rate, creating an additional financial burden to the low-income borrower.
The microinsurance product “will help cooperatives to spread the risk, secure their liquidity and enhance their micro-lending capacity even in critical times, at the same time making loans affordable to their members,” said Mahl.
In addition to reinsurance coverage, Munich Re will offer support in satellite data monitoring and analysis. There has been a great demand for catastrophe risk protection in Asia. Mahl said the reinsurer is looking to develop this product in other countries.
As extreme weather events induced by climate changes are likely to increase, Munich Re said microinsurance instruments are expected to gain relevance for affected communities as well as insurers’ portfolio.
The partnership with cooperatives could scale up the microinsurance coverage on a group level across the county, said Mahl. Also, these cooperatives offer extensive distribution and administration supports for product penetration.
Filed under MICROFINANCE AROUND THE WORLD
Leave a Comment
By Iris Lai, Insurancenewsnet.com -
Munich Re has rolled out its first microinsurance product in the Philippines to provide protection for the lending capacity of cooperatives to low-income groups against extreme weather events.
The loan protection microinsurance product was developed for Coop Life Insurance & Mutual Services, a cooperative life insurer for local cooperatives and members in the Philippines, in partnership with Deutsche Gesellschaft fur Technische Zusammenarbeit, a German government-owned enterprise for international sustainable development projects.
Munich Re is the sole reinsurer for this microinsurance product, distributed through more than 1,800 cooperatives in the Philippines. Coop Life is the composite insurance provider for cooperatives with products offered for life, property and health protection. It is also the primary insurer for local cooperatives and offers them portfolio protection.
The product will enable low-income households in the Philippines to receive benefits through their cooperative after devastating natural events. For the cooperatives, the microinsurance plan will guarantee liquidity of the loan portfolio and will provide quick payout via Coop Life, said Munich Re in a statement.
Munich Re is also looking into development of other new microinsurance products in the Philippines, said Thomas Mahl, business development manager at Munich Re Singapore. The partnership with GTZ is important to promote social responsibility for catastrophe protection in delivering benefits to the target group, he said.
The Philippines is highly exposed to extreme weather events such as typhoons, torrential rain and subsequent floods, creating financial risks to microfinancial institutions. Typhoon Morakot was among the top 10 largest global natural catastrophe in 2009, causing 614 deaths, US$1.6 billion in economic losses and US$110 million in insured losses, according to Munich Re.
Natural disasters interrupt the cash flow of cooperatives as member borrowers often cannot repay their loans, leading to insolvency of the cooperatives. In the Philippines, the cooperatives currently lend money at a higher interest rate, creating an additional financial burden to the low-income borrower.
The microinsurance product “will help cooperatives to spread the risk, secure their liquidity and enhance their micro-lending capacity even in critical times, at the same time making loans affordable to their members,” said Mahl.
In addition to reinsurance coverage, Munich Re will offer support in satellite data monitoring and analysis. There has been a great demand for catastrophe risk protection in Asia. Mahl said the reinsurer is looking to develop this product in other countries.
As extreme weather events induced by climate changes are likely to increase, Munich Re said microinsurance instruments are expected to gain relevance for affected communities as well as insurers’ portfolio.
The partnership with cooperatives could scale up the microinsurance coverage on a group level across the county, said Mahl. Also, these cooperatives offer extensive distribution and administration supports for product penetration.
Insurers intensify call for microinsurance after ‘Juan’
Insurers intensify call for microinsurance after ‘Juan’
GMANews.TV
GMANews.TV - Monday, October 25
In the aftermath of typhoon Juan (international code: Megi) which devastated northern Luzon last week, insurers have intensified the call for farmers to buy microinsurance.
“Nature has once again reminded all us of the importance of being insured. Last year, it was typhoon Ondoy that flooded cars and houses. Now, it’s typhoon Juan that devastated farm lands," Philippine Insurers and Reinsurers Association (PIRA) chairman Michael Rellosa said this weekend.
“We really need to develop microinsurance — or insurance for the poor and marginalized — to protect our poor countrymen who are exposed to various risks, including natural calamities," Rellosa said in an interview.
He pointed out that some local insurance companies are now developing products for farmers.
An example is the crop insurance of one company that insures the capital used by the farmer in planting his field, Rellosa said.
The insurance company will indemnify the farmer for the capital he used should the area be declared under a state of calamity, he added.
Rellosa said microinsurance is still confronting several challenges in areas of distribution, claims handling, and the lack of insurance literacy among the poor. “Right now, 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," he said.
Promoting security
Meanwhile, PIRA has partnered again with the Philippine Insurers Club (PIC) for the Insurance Consciousness Week (ICW), starting Oct. 26-30, 2010, that carries the theme “Promoting Security and Stability through Insurance Awareness."
The week will start with a thanksgiving mass at the Insurance Commission and dialogues with marginalized sectors on their perception of insurance and how the industry can appreciate insurance better, said PIC president Leticia Pagharion.
Charity works have also been lined up, she said.
The ICW will end in Davao City, with the Davao Insurers Club expounding on how people from Mindanao could appreciate insurance, Pagharion added.
Aside from the ICW and the Micro Insurance Conference, PIRA is also co-hosting the Association of Southeast Asian Nations’ (Asean) Insurance Council meetings of insurance regulators and industry leaders from Southeast Asia, she said.
Pagharion said the association is also backing the Young Asean Managers Awards which recognize the promising future leaders of the region.
“We can therefore say that in the four weeks that will follow, all eyes of the insurance industry in the region will be focused on the Philippines. It is PIRA’s privilege to be given this opportunity," Rellosa said. — JE/VS, GMANEws.TV
GMANews.TV
GMANews.TV - Monday, October 25
In the aftermath of typhoon Juan (international code: Megi) which devastated northern Luzon last week, insurers have intensified the call for farmers to buy microinsurance.
“Nature has once again reminded all us of the importance of being insured. Last year, it was typhoon Ondoy that flooded cars and houses. Now, it’s typhoon Juan that devastated farm lands," Philippine Insurers and Reinsurers Association (PIRA) chairman Michael Rellosa said this weekend.
“We really need to develop microinsurance — or insurance for the poor and marginalized — to protect our poor countrymen who are exposed to various risks, including natural calamities," Rellosa said in an interview.
He pointed out that some local insurance companies are now developing products for farmers.
An example is the crop insurance of one company that insures the capital used by the farmer in planting his field, Rellosa said.
The insurance company will indemnify the farmer for the capital he used should the area be declared under a state of calamity, he added.
Rellosa said microinsurance is still confronting several challenges in areas of distribution, claims handling, and the lack of insurance literacy among the poor. “Right now, 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," he said.
Promoting security
Meanwhile, PIRA has partnered again with the Philippine Insurers Club (PIC) for the Insurance Consciousness Week (ICW), starting Oct. 26-30, 2010, that carries the theme “Promoting Security and Stability through Insurance Awareness."
The week will start with a thanksgiving mass at the Insurance Commission and dialogues with marginalized sectors on their perception of insurance and how the industry can appreciate insurance better, said PIC president Leticia Pagharion.
Charity works have also been lined up, she said.
The ICW will end in Davao City, with the Davao Insurers Club expounding on how people from Mindanao could appreciate insurance, Pagharion added.
Aside from the ICW and the Micro Insurance Conference, PIRA is also co-hosting the Association of Southeast Asian Nations’ (Asean) Insurance Council meetings of insurance regulators and industry leaders from Southeast Asia, she said.
Pagharion said the association is also backing the Young Asean Managers Awards which recognize the promising future leaders of the region.
“We can therefore say that in the four weeks that will follow, all eyes of the insurance industry in the region will be focused on the Philippines. It is PIRA’s privilege to be given this opportunity," Rellosa said. — JE/VS, GMANEws.TV
Monday, October 25, 2010
ABI Comments on flood investment Plans
The Association of British Insurers issued a Press Release on the 21st October "Spending Review – ABI comments on flood investment plans" 20th October 2010
Commenting on the announcement, in today’s Spending Review, on flood defence investment,
Nick Starling, the ABI’s Director of General Insurance and Health said:
“The Government is right to recognise the importance of continued investment in flood
defences. But we are disappointed that this will not be maintained at current levels,
given the scale of the problem and the wider economic benefits provided by flood
defences to our communities and businesses.
defences. But we are disappointed that this will not be maintained at current levels,
given the scale of the problem and the wider economic benefits provided by flood
defences to our communities and businesses.
“We urgently need a long-term plan to tackle the rising flood risk this country faces
over the next 25 years, especially as the Statement of Principles on Flood Insurance
comes to an end in 2013.
“In the last spending review, the previous Government committed to £2.15 billion for
three years 2008 - 2011. Today, the Government committed £2 billion over four years
2011- 2015”.
Further Information
The UK insurance industry is the third largest in the world and the largest in Europe. It is
a vital part of the UK economy, managing investments amounting to 24% of the UK’s total
net worth and contributing the fourth highest corporation tax of any sector. Employing over
275,000 people in the UK alone, the insurance industry is also one of this country’s major
exporters, with a fifth of its net premium income coming from overseas business.
Insurance helps individuals and businesses protect themselves against the everyday risks they face, enabling people to own homes, travel overseas, provide for a financially secure future and
run businesses. Insurance underpins a healthy and prosperous society, enabling businesses
and individuals to thrive, safe in the knowledge that problems can be handled and risks
carefully managed. Every day, our members pay out £155 million in benefits to pensioners and long - term savers as well as £58 million in general insurance claims. Source ABI
Do you live in an area that is affected by flooding or having difficulty getting insurance for your property? Then click Here
Friday, October 22, 2010
Spain and Italy doing well despite drop in Property searches
According to a posting on the Intasure Holiday home and second home insurance website blog:-New figures have revealed a drop in overseas property hunters during September, but some countries continued to perform well.
An overall drop in the number of Brits searching for an overseas property in September failed to rock the robust housing markets in Italy and Spain.
Although figures from Rightmove and Moneycorp revealed a 17 per cent drop in the number of people looking to become holiday home insurance customers compared to August, interest in Italy remained high, and property searches in Tenerife rose by 3.79 per cent.
Among the biggest losers was Greece, where searches fell by a huge 24.46 per cent, with the nation's perilous financial conditions undoubtedly playing a part in putting buyers off.
David Kerns, dealing manager at Moneycorp, said: "In addition to seasonal effects, the decline in searches for overseas property could also be due to the weakening of sterling throughout September against most major currencies."
Shelter Offshore advised property hunters that Spain could offer a relaxed and cultured place to live for retiring Brits.
Intasure is an international building and contents insurance specialist with a proven track record in pioneering new products. For more information Click Here
Thursday, October 21, 2010
HomeLet Insurance encourages Landlords to think about Rental Guarantee as difficult times face tenants
HomeLet Landlord and Tenant Insurance PRESS RELEASE - Thursday 21st October 2010
After months of speculation, the UK's "age of austerity" has begun; the government has announced the results of its Spending Review. HomeLet, the market leading provider of tenant referencing and Rent Guarantee services warns landlords these results could result in additional job losses and tenants defaulting on rent.
The coalition Government has put deficit reduction at the heart of its economic policy, arguing that the poor state of the UK's public finances poses a greater threat to economic recovery than cuts in spending.
According to the independent Institute for Fiscal Studies (IFS) the government's Budget measures will cut 77% of the £86bn through spending cuts, and the remaining 23% through tax increases.
It’s likely the spending cuts announced yesterday will come mostly from the public sector, these cuts are likely to have a huge impact in most areas of the UK and in particular Liverpool.
In Liverpool the problem is exaggerated by the fact that almost 40% of all employment is in public sector which faces the most change, this is an additional burden on the economy of Liverpool – hindering its recovery from the effects of the worst recession in living memory.
The number of tenants defaulting on their rent is likely to soar following minimal change in the rate of unemployment which is currently standing at 7.8% and additional job cuts which are likely to feature as a result of public sector spending cuts.
HomeLet processes around 30,000 tenant references every month, a majority of which are for applicants aged between 18 and 24.
“Youth unemployment is at its highest rate for 15 years and it will get worse over the next few months as the affects of spending cuts start to have an impact on local economies,” said John Boyle, HomeLet’s Managing Director.
“This could have a significant impact on the private rented sector in regions which rely on young people entering full-time employment and moving into rented accommodation, rather than staying in the family home”
“For landlords, particularly those who rely on the monthly rental income from their property to pay the mortgage, even one month’s arrears in this financial climate can spell disaster.”
“To avoid becoming a victim of these spending cut changes John encourages landlords who are concerned about rent arrears to consider taking out rent protection insurance.”
“In 2009 HomeLet paid out £3 million in Rent Guarantee claims and I anticipate that this figure will continue to rise during the remainder of 2010 as more and more tenants find themselves out of work and unable to meet their financial commitments" John commented.
“But, we also understand that finding a rented property whilst you’re unemployed can be hard, that’s why HomeLet Rent Guarantee can even cover unemployed tenants,” said John.
HomeLet’s Rent Guarantee policies, available through approved letting agents, cover rental payments for up to 12 months and all legal costs incurred in evicting the tenant as a result of non-payment of rent up to a maximum of £50,000, depending on the policy.
HomeLet is the UK’s largest tenant referencing, Rent Guarantee and specialist insurance provider for the lettings industry and has around 3,000 approved letting agents nationwide.
HomeLet pays out an average £3m in Rent Guarantee claims every year.
HomeLet have been shortlisted for the 2010 Landlord & Letting Awards.
Rentguard Insurance Update
Equity Red Star has joined the Rentguard Insurance panel of insurers who underwrite their Owner Occupied Buildings and Contents and Tenant Contents Insurance policies.
These insurances cover the loss or damage from standard perils on buildings, contents and personal possessions for Owner Occupied policies and contents and personal possessions for Tenants Contents policies – with full accidental damage cover available as an addition for both.
For more information about Rentguard Insurance Products Click Here
HomeLet Mousemat for Tenant's Contents Insurance
HomeLet agents received a mousemat in their post recently. HomeLet the major Landlord and Tenant insurance provider in the UK
The theme of this mousemate is Tenants love HomeLet insurance because of the following:
- There's one easy rate for the whole of the UK
- They help to protect their deposit
- It takes less than 5 minutes to arrange cover
- Tens of thousands of tenants trust HomeLet to protect their belongings
- HomeLet pay out £6 million in claims each year
- Homelet helped 1 million tenants move in the last three years.
HomeLet have made some exciting changes to their popular Tenant's Contents Insurance+
- They have given the literature a brand new fresh look
- The application form for applying for Tenant's Contents Insurance has been simplified and is much easier to fill out.
- They now have a simple pricing structure no matter where a tenant is located in the country.
- Policies can now be arranged six months in advance of the start of the tenancy- this is something that HomeLet has found particularly popular for students, doctors and teachers because they often know where they're going to be living far in advance of starting their job or studies. Most tenancy agreements now include a clause stating that the tenant must take out his/her own insurance to cover the personal belongings and the agent or landlord need to see this before the tenant moves in.
Wednesday, October 20, 2010
Somali payment system attracts attention from a strange source
A recent statement released by a Somali rebel group, al-Shabab and carried by Reuters was reported on widely. (Read here and here, amongst others). According to the statement, al-Shabab states that the the local mobile payment system (referred to as Zaad) is a threat to the local economy and must be discontinued by the end of the year. This story was distributed widely by an eager western press. In the eyes of many, Somali is a country of pirates with an economy based on extortion. Nothing can be further from the truth.The condemnation of the Somali government of the ban by the rebel group was not reported on at all. (Read here). In the press release the government shows much support for the mobile banking service, highlighting the huge benefits provided by the service to the population of Somalia. Furthermore, little gets reported on the strong economy of the country based on agriculture and diaspora all over the world remitting money back into the country. The economy is not performing optimally because of the instability created by rebel groups, but is reported to be growing at rates of 4% per year. Not too bad for any country. GDP per capita is about $330 which is only slightly lower than Kenya, but higher than Tanzania for instance.
What is a pity is that very little has been said about Zaad, the local mobile payment service under the spotlight. Zaad is a locally developed and managed service available all through the country and available on all mobile operators. According to all accounts and as far as I can ascertain, it is a very well designed service and one of the first to become operational on the continent. It utilise USSD as a carrier and security implementation seems to be well though out. It seems to be rich in features and can be compared with the best available. This seems to be a really good story that should have been reported on more widely. (Read the Zaad website here).
According to Wikipedia, al-Shabaab recently decreed that gold and silver dental fillings were un-Islamic, and dispatched patrols to yank them out of people's mouths. (Read here). It is a pity that a world-class service (like Zaad) be made known to the world in conjunction with a radical group like al-Shabaab.
Monday, October 18, 2010
Insurance 4 half term holidays
We are now in mid October and despite announcements of Government spending cuts in the UK this week, life still goes on.
Many people will be taking half term holidays in the next few days and as the last days of summer have now gone and colder weather unfortunately on its way are heading off to hotter destinations for a short break that will take them through to Halloween. Some people of course prefer a city break.
So if you are off to the Algarve or Amsterdam make sure that you have proper insurance. As a lot of people now make their travel arrangements You will need Travel Insurance. Holiday delayed? Missed departure? Lost your passport? Personal money stolen? Catastrophe, fire, flood, earthquake or storm, Medical Emergency, Hospital, Emergency Dental Treatment, Legal Advice, Mugging etc are just some of the reasons to do this. You will need to check carefully what is covered and not covered when you buy Travel Insurance.
You can now also buy Financial Failure Insurance, Pre-existing medical Travel Insurance, Kidnap & Ransom Insurance, Ski and winter sports insurance and Emergency Medical Travel Insurance. The over 50s age group are not forgotten either and with more and more people who have finished their working career, but have a good disposable income taking a break it is essential that they too have the appropriate cover.
The jml Insurance site has a lot of insurance companies advertising their products. You make the arrangements direct with the provider on line. Companies include Direct Travel, Essential Travel, Endsleigh, Staysure, Simple, Primary, insureme4, JS Insurance, Travel insurance Medical, Travelplan Direct, Protect my Holiday Home, Kinsure and Equity and General Insurance Services.
When you take your break, you will often hire a car. When you rent a car you need to insure the excess on your hire car with a daily insurance policy daily policy from around £1.94 per day or with an economical annual policy from around £40.00 a year. Do you know that it could cost you £500) or more for any damage to your rental car? This is even if it is not not your fault.
When you rent a car, you will find that your car rental agreement normally includes cover for Collision Damage Waiver - CDW (damage to the rental vehicle) and Theft. There is almost always an excess on the Collision Damage Waiver and Theft.
You are however still liable for the Excess on CDW and Theft. When a rental car is damaged or stolen, the driver is asked to pay the first portion of the repair or replacement costs. This is known as the Excess.
You can of course do this via the car hire company; however it will normally cost you a lot more money to do this that way. The easiest way is to buy your “excess insurance” in advance. If you are taking several holidays (or business trips) in a year, the cheaper way is to buy an annual policy and prices start around £40 per year for European cover.
The insurance4carrental.com website has a very good selection of car hire, motorhome hire and van hire excess insurance companies who advertise on the site. You make arrangements direct and what is more several of them offer insurance for “older drivers” up to the age of 85 years old.
Companies advertising include Essential Travel, Insurance4carhire, iCarhireinsurance, Questor, Daily Excess, Odyssey and insuremyvanhire..
Find out more Here
Have a great Half term holiday break
Friday, October 15, 2010
Landlord & Letting Awards to take place November 17th 2010
People with buy to let insurance and others in the property sector might like to note that the 2010 Landlord & Letting Awards is set to take place on November 17th at the Birmingham NEC.
Thus far, 400 entries have been received, with categories including campaigner, financial services, furniture, landlord of the year, letting agent of the year and best website.
Those who are successfully shortlisted will be able to attend a ceremony at the Hilton Hotel, hosted by businessman, TV presenter and landlord Craig Phillips, who set up his own company in the 90s and, after winning 2000's Big Brother series, raised more than half a million pounds for charity.
Finalists include: Landlord Action, LettingFocus, the Association of Leasehold Enfranchisement Practitioners and the Residential Landlords Association.
Last year's winners include: Lanes Lettings & Management, Reardon Properties, PestFreeHome and David Phillips Furniture, as well as Property Earth and Umbrella Property Rentals.
Simple is a trading name of TPS (Insurance Admin Services) Limited. TPS (Insurance Admin Services) Limited is authorised and regulated by the Financial Services Authority (number 311788). Registered Office:Cast House, Old Mill Business Park, Gibraltar Island Road, Leeds, West Yorkshire, LS10 1RJ. Registered in England number 02587396
Source Simple Landlords Insurance
See also: HomeLet & Simple insurance amongst those shortlisted for Landlord & Lettings Awards 2010
For more on Simple Landlords Insurance - Click Here
Microinsurance Momentum in the Philippines
Microinsurance Momentum in the Philippines
by Kate McKee: Friday, October 8, 2010
CGAP
When hundreds of practitioners from around the world descend on Manila next month for the annual microinsurance conference, they’ll have a chance to observe firsthand a sector on the move. Sure, right now only 13.92 % of Filipinos have life insurance and penetration (premiums to GDP) is only 1.05%. But access is growing. And recent field research shows that once it is explained to them, low-income people say they want insurance and are willing to pay 20-30 pesos (US$.45-.$60) a week for it. As insurance providers begin to target the low-income market, they are offering a range of products: whole life; accident, burial and medical benefits plans; asset protection for microentrepreneurs hit by fire, lightning, flood, typhoon or earthquakes; and weather index crop insurance.
Over a hundred practitioners gathered in Manila on Friday, October 1 for a consultation on the new “Roadmap for Financial Literacy on Microinsurance,” an action plan prepared by a Technical Working Group comprised of all the key stakeholders from government, the microfinance and cooperative sectors and the insurance industry. This work has been supported by ambitious sector-building programs of the Asian Development Bank and GTZ that aim to institutionalize industry standards, develop products and carry out a nationwide microinsurance literacy and advocacy campaign.
The Roadmap is accompanied by a new “National Strategy and Regulatory Framework for Microinsurance” that aims to promote orderly growth in the sector while protecting consumers by requiring retail sellers of insurance policies to either register a Mutual Benefit Association (MBA) or team up with a regulated insurer. The focus is strictly on sustainable insurance provided by private providers, distributed by financial institutions who are close to the poor, and paid for by low-income people who see insurance as a good value proposition (referred to as “the paying poor”). The day before, the Financial Monetary Board had authorized mini-branches to widen financial access points, with microinsurance mentioned specifically as a permissible product.
The new rules are being rolled out through these road shows along with a broad financial literacy campaign. Itoy Almario (National Credit Council – Department of Finance), who has spearheaded the Roadmap process, pointed out that it is not just clients but also regulators and those in the industry who need a different mind-set – “Insurance is not just for the rich.”
One aspect of the whole process that stands out is the integration of client protection right from the beginning. Almario was quick to remind the audience that the current problem is not just misunderstanding of insurance by poorer Filipinos, but outright mistrust. Simple, plain-language contracts and claims settlement within 10 days would be a good starting point to building more trust. Consumer protection and client rights and benefits are central messages in the campaign.
This focus mirrors similar work in other countries and at the global level. For example, CGAP is commissioning a chapter for the forthcoming new version of the Micro-insurance Compendium (the first was co-published by the International Labor Organization and the Munich Re Foundation on nascent approaches to consumer protection regulation. While we tend to fear that regulation will increase costs and price poor people out of the market, this may be a case where basic rules of the game actually build trust and hence help build the market, rather than stifling innovation. The Smart Campaign is working on guidelines that apply the core client protection principles to micro-insurance, and the MicroInsurance Network is launching a task force on how to promote transparency and fair treatment as the sector expands.
In the Philippines, it looks like the three essential ingredients of responsible finance – industry standards, access-friendly regulation, and financial capability initiatives – are coming together in the microinsurance sector.
–Kate McKee
by Kate McKee: Friday, October 8, 2010
CGAP
When hundreds of practitioners from around the world descend on Manila next month for the annual microinsurance conference, they’ll have a chance to observe firsthand a sector on the move. Sure, right now only 13.92 % of Filipinos have life insurance and penetration (premiums to GDP) is only 1.05%. But access is growing. And recent field research shows that once it is explained to them, low-income people say they want insurance and are willing to pay 20-30 pesos (US$.45-.$60) a week for it. As insurance providers begin to target the low-income market, they are offering a range of products: whole life; accident, burial and medical benefits plans; asset protection for microentrepreneurs hit by fire, lightning, flood, typhoon or earthquakes; and weather index crop insurance.
Over a hundred practitioners gathered in Manila on Friday, October 1 for a consultation on the new “Roadmap for Financial Literacy on Microinsurance,” an action plan prepared by a Technical Working Group comprised of all the key stakeholders from government, the microfinance and cooperative sectors and the insurance industry. This work has been supported by ambitious sector-building programs of the Asian Development Bank and GTZ that aim to institutionalize industry standards, develop products and carry out a nationwide microinsurance literacy and advocacy campaign.
The Roadmap is accompanied by a new “National Strategy and Regulatory Framework for Microinsurance” that aims to promote orderly growth in the sector while protecting consumers by requiring retail sellers of insurance policies to either register a Mutual Benefit Association (MBA) or team up with a regulated insurer. The focus is strictly on sustainable insurance provided by private providers, distributed by financial institutions who are close to the poor, and paid for by low-income people who see insurance as a good value proposition (referred to as “the paying poor”). The day before, the Financial Monetary Board had authorized mini-branches to widen financial access points, with microinsurance mentioned specifically as a permissible product.
The new rules are being rolled out through these road shows along with a broad financial literacy campaign. Itoy Almario (National Credit Council – Department of Finance), who has spearheaded the Roadmap process, pointed out that it is not just clients but also regulators and those in the industry who need a different mind-set – “Insurance is not just for the rich.”
One aspect of the whole process that stands out is the integration of client protection right from the beginning. Almario was quick to remind the audience that the current problem is not just misunderstanding of insurance by poorer Filipinos, but outright mistrust. Simple, plain-language contracts and claims settlement within 10 days would be a good starting point to building more trust. Consumer protection and client rights and benefits are central messages in the campaign.
This focus mirrors similar work in other countries and at the global level. For example, CGAP is commissioning a chapter for the forthcoming new version of the Micro-insurance Compendium (the first was co-published by the International Labor Organization and the Munich Re Foundation on nascent approaches to consumer protection regulation. While we tend to fear that regulation will increase costs and price poor people out of the market, this may be a case where basic rules of the game actually build trust and hence help build the market, rather than stifling innovation. The Smart Campaign is working on guidelines that apply the core client protection principles to micro-insurance, and the MicroInsurance Network is launching a task force on how to promote transparency and fair treatment as the sector expands.
In the Philippines, it looks like the three essential ingredients of responsible finance – industry standards, access-friendly regulation, and financial capability initiatives – are coming together in the microinsurance sector.
–Kate McKee
Tuesday, October 12, 2010
What is needed for digital begging?
It is clear that the way that we pay and receive payments will change drastically in the next decade. Everything else changed as the digital revolution took hold of our world, so definitely, for sure money will change too.I was thinking about how payment behaviour will change. The things that we are used to in a cash economy as things change into digital money. Would it be possible to beg for instance? I was convinced that this would be difficult, predominantly because I believed that we will put the control of payment back in the hands of the payer.
Then I saw that the guys at Zoompass implemented a mechanism to ask people for money (Read here). As a matter of fact, the new feature even allows you to ask a whole bunch of people at the same time for money. I see where they are coming from... it is now possible to get the club fees paid in one smooth step. No more phoning or pleading to get the team's subscription paid. But this is also a great tool for beggars I think. With the help of digitisation, a beggar is now not limited to one victim at a time - one can now target a whole crowd at the same time.
The complexity of mobile infrastructure influence on mobile payments
On the right is a screenshot of my iPhone. It is a text "conversation" that I was recently confronted with. The text message that I sent to the recipient was reportedly not delivered. After some time, the recipient responded as if he did receive the message and then kept on responding five times every twenty minutes.We have all been exposed to such a situation and (although irritating), we understand that these networks are complex and things can go wrong. For us with a bit more technical back-ground, it is clear that although I was registered on the network, something went wrong with the data-entry on the networks SMS-C.
This is possibly acceptable, because no money was lost. I had to deal with a bit of inconvenience. However, if a financial transaction or instruction was carried on these "mis-behaving" messages, money may have been lost, or it would be possible that consumers would be extremely concerned. It is just not an option to deliver financial services on a platform with this behaviour.
Now for a moment consider how to build a system that sits on top of a platform with this kind of erratic behaviour (albeit infrequently). Difficult? Almost impossible? Hmmmm
Sunday, October 3, 2010
IC, Pira to entice poor Pinoys to get insurance
Business Mirror
Written by Jun Vallecera / Reporter
Sunday, 03 October 2010 10:40
POLICY crafters, regulators and industry players vowed on Friday to enlighten poor, but enterprising Filipinos, whether rural- or urban-based, on the merits of acquiring some form of protection against financial reverses and other forms of misfortune.
The Insurance Commission (IC), the Philippine Insurers and Reinsurers Association, the various small units engaged in microinsurance, and technocrats from the Department of Finance met at the Century Park Hotel in Manila and committed to inform as many of the estimated 27 million poor Filipinos who do not have any kind of risk protection at all.
Less than 3 million of these very poor Filipinos have purchased an insurance policy against sickness, dismemberment, property loss, natural perils or even death, and all because an overwhelming number of them are uninformed, said Joselito Almario, deputy executive director of the National Credit Council.
The event formalized the pursuit of what has always been an informal approach to microinsurance and, at the same time, marked the start of a literacy campaign and road show meant to mainstream the microinsurance program.
Almario said only about half of the less than 3 million Filipinos that bought microinsurance policies obtained them from the formal insurance providers, potentially exposing them to many more risks than just the loss of a house or limb.
He would not blame the formal sources of risk protection for not coming down to where their services are sorely needed on account of the high transaction costs, actuarial difficulties and other factors the microinsurance program faces.
Nevertheless, Almario said, the government recognized the need to bring the large swathe of the unprotected population in from the cold and provide them with a measure of risk-mitigating programs like microinsurance.
This was the reason the IC issued a circular in March that laid down policies on what was up to then informal microinsurance activities.
The IC followed up with another circular that set guidelines on the treatment of funds collected from informal microinsurance activities.
Right now, Almario said, performance standards are being set and some fine-tuning is done on the risk-based regulatory framework the IC implements to suit the microinsurance business.
Industry players are also being urged to come up with innovative products so more Filipinos are encouraged to take risk protection for contingent events.
In essence, microinsurance is all about policies written costing as small as P300 a year yielding benefits as large a P200,000, Almario said.
Written by Jun Vallecera / Reporter
Sunday, 03 October 2010 10:40
POLICY crafters, regulators and industry players vowed on Friday to enlighten poor, but enterprising Filipinos, whether rural- or urban-based, on the merits of acquiring some form of protection against financial reverses and other forms of misfortune.
The Insurance Commission (IC), the Philippine Insurers and Reinsurers Association, the various small units engaged in microinsurance, and technocrats from the Department of Finance met at the Century Park Hotel in Manila and committed to inform as many of the estimated 27 million poor Filipinos who do not have any kind of risk protection at all.
Less than 3 million of these very poor Filipinos have purchased an insurance policy against sickness, dismemberment, property loss, natural perils or even death, and all because an overwhelming number of them are uninformed, said Joselito Almario, deputy executive director of the National Credit Council.
The event formalized the pursuit of what has always been an informal approach to microinsurance and, at the same time, marked the start of a literacy campaign and road show meant to mainstream the microinsurance program.
Almario said only about half of the less than 3 million Filipinos that bought microinsurance policies obtained them from the formal insurance providers, potentially exposing them to many more risks than just the loss of a house or limb.
He would not blame the formal sources of risk protection for not coming down to where their services are sorely needed on account of the high transaction costs, actuarial difficulties and other factors the microinsurance program faces.
Nevertheless, Almario said, the government recognized the need to bring the large swathe of the unprotected population in from the cold and provide them with a measure of risk-mitigating programs like microinsurance.
This was the reason the IC issued a circular in March that laid down policies on what was up to then informal microinsurance activities.
The IC followed up with another circular that set guidelines on the treatment of funds collected from informal microinsurance activities.
Right now, Almario said, performance standards are being set and some fine-tuning is done on the risk-based regulatory framework the IC implements to suit the microinsurance business.
Industry players are also being urged to come up with innovative products so more Filipinos are encouraged to take risk protection for contingent events.
In essence, microinsurance is all about policies written costing as small as P300 a year yielding benefits as large a P200,000, Almario said.
Gov’t eyes micro-insurance regulation next year
Business World
Finance
Posted on 06:36 PM, October 01, 2010
Gov’t eyes micro-insurance regulation next year
THE FINANCE Department is aiming to regulate all micro-insurance institutions by next year, with a technical working group finalizing a roadmap toward literacy in an indemnity targeting the low-income sector.
Finance Undersecretary Gil S. Beltran said the roadmap will help the government regulate micro-insurance companies, noting that there are many "fly-by-night" insurers without citing data.
"They are not exactly illegal. They are legitimate. It’s just that we have to move them all to the regulatory net," Mr. Beltran said at the sidelines of a micro-finance forum yesterday at the Century Park Hotel in Manila.
Mario C. Valdes, general manager of the Philippine Insurers and Reinsurers Association (PIRA) and member of the working group, said about 17,000 cooperatives offering insurance to their members should register with the Insurance Commission pursuant to its circular last January.
Memorandum Circular (MC) 1-2010 has laid out regulations covering micro-insurance, among them, that premiums to be paid by policy holders should not exceed 5% of the daily minimum wage in Metro Manila, and that insurance coverage should not be more than 500 times of it.
At current rates, micro-insurers should not charged policy holders more than P20 a day with coverage not exceeding P200,000 a year.
"We are targeting that by next year, all companies [offering micro-insurance] and their agents should be registered with the Insurance Commission," Mr. Valdes said by phone.
To do this, information dissemination about micro-insurance is ongoing nationwide. This is being facilitated by the working group composed of representatives from the Finance department-National Credit Council (NCC), Insurance Commission, Securities and Exchange Commission, and the National Anti-Poverty Commission, PIRA and other insurance associations, among others.
In the forum on Friday, NCC Executive Director Joselito S. Almario also said the working group would also distribute modules by the second quarter of next year to "increase knowledge" of different sectors such as the local government units and "potential clients" about micro-insurance.
"The problem is that companies offering micro-insurance do not know how to go down to the level of the informal sector, while informal sector is not even familiar about micro-insurance," Mr. Almario said in a separate interview.
He noted micro-insurance "had long been offered by insurance companies" only that the term was only coined by the government last January.
Michael F. Rellosa, president of the Fortune General Insurance Corp., cited an example. He said his company has been offering for five years now a one-time travel insurance, wherein policy holders who would travel in the future may pay only P50 for a coverage worth P100,000.
"If for example you would go to Baguio, you can avail yourself of this travel insurance. Para siyang tinge na insurance," Mr. Rellosa said in a separate interview.
Under MC 1-2010, micro-insurance is defined as "an activity providing specific insurance [and] insurance-like... products and services that meet the needs of the low-income sector for risk protection... and other contingent events."
Mr. Almario said they would call on insurance companies to have their agents attend trainings on micro-insurance later next year. "LGUs may also help us in promoting trainings for agents," he added. -- Prinz P. Magtulis
Finance
Posted on 06:36 PM, October 01, 2010
Gov’t eyes micro-insurance regulation next year
THE FINANCE Department is aiming to regulate all micro-insurance institutions by next year, with a technical working group finalizing a roadmap toward literacy in an indemnity targeting the low-income sector.
Finance Undersecretary Gil S. Beltran said the roadmap will help the government regulate micro-insurance companies, noting that there are many "fly-by-night" insurers without citing data.
"They are not exactly illegal. They are legitimate. It’s just that we have to move them all to the regulatory net," Mr. Beltran said at the sidelines of a micro-finance forum yesterday at the Century Park Hotel in Manila.
Mario C. Valdes, general manager of the Philippine Insurers and Reinsurers Association (PIRA) and member of the working group, said about 17,000 cooperatives offering insurance to their members should register with the Insurance Commission pursuant to its circular last January.
Memorandum Circular (MC) 1-2010 has laid out regulations covering micro-insurance, among them, that premiums to be paid by policy holders should not exceed 5% of the daily minimum wage in Metro Manila, and that insurance coverage should not be more than 500 times of it.
At current rates, micro-insurers should not charged policy holders more than P20 a day with coverage not exceeding P200,000 a year.
"We are targeting that by next year, all companies [offering micro-insurance] and their agents should be registered with the Insurance Commission," Mr. Valdes said by phone.
To do this, information dissemination about micro-insurance is ongoing nationwide. This is being facilitated by the working group composed of representatives from the Finance department-National Credit Council (NCC), Insurance Commission, Securities and Exchange Commission, and the National Anti-Poverty Commission, PIRA and other insurance associations, among others.
In the forum on Friday, NCC Executive Director Joselito S. Almario also said the working group would also distribute modules by the second quarter of next year to "increase knowledge" of different sectors such as the local government units and "potential clients" about micro-insurance.
"The problem is that companies offering micro-insurance do not know how to go down to the level of the informal sector, while informal sector is not even familiar about micro-insurance," Mr. Almario said in a separate interview.
He noted micro-insurance "had long been offered by insurance companies" only that the term was only coined by the government last January.
Michael F. Rellosa, president of the Fortune General Insurance Corp., cited an example. He said his company has been offering for five years now a one-time travel insurance, wherein policy holders who would travel in the future may pay only P50 for a coverage worth P100,000.
"If for example you would go to Baguio, you can avail yourself of this travel insurance. Para siyang tinge na insurance," Mr. Rellosa said in a separate interview.
Under MC 1-2010, micro-insurance is defined as "an activity providing specific insurance [and] insurance-like... products and services that meet the needs of the low-income sector for risk protection... and other contingent events."
Mr. Almario said they would call on insurance companies to have their agents attend trainings on micro-insurance later next year. "LGUs may also help us in promoting trainings for agents," he added. -- Prinz P. Magtulis
Subscribe to:
Posts (Atom)