Non-profit association commends Philippine insurance industry for advancing financial inclusion

Non-profit association commends Philippine insurance industry for advancing financial inclusion | Insurance Business Asia

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Non-profit association commends Philippine insurance industry for advancing financial inclusion

MiN’s study reveals promising progress in Philippine insurance sector’s drive for financial inclusion

In a recent report, Luxembourg-based non-profit association Microinsurance Network (MiN) has commended the Philippine insurance industry for its significant strides in promoting financial inclusion for those in need.

MiN’s Landscape of Microinsurance 2022 Study tracked the adoption of inclusive insurance products and services and shed light on emerging trends aimed at bridging the people protection gap.

The study encompassed 253 insurance providers across 34 countries, offering insights into the progress made in Africa, Asia, Latin America, and the Caribbean, and the efforts to extend insurance coverage to underserved communities.

Katharine Pulvermacher, the executive director of MiN, emphasized the importance of providing industry overviews to foster growth and engagement in developing countries, particularly with the increased interest from diverse stakeholders.

These reports not only inform policy and business decisions but also influence product design and facilitate market entry for the private sector, Pulvermacher said.

The study highlighted several best practices, with particular emphasis on the Philippine insurance sector’s innovative approach to reaching its target market. For instance, the research explored how motorcycle distributors in the country serve as distribution partners for motorcycle insurance, effectively expanding the reach of insurance beyond traditional channels.

This inclusive approach has allowed the sector to address the unique needs of low-income families engaged in agriculture, supporting them with relevant microinsurance solutions.

Lorenzo Chan Jr., MiN chairman and head of the Pioneer Group of Insurance Companies, emphasized the vital role microinsurance plays in the lives and livelihoods of those at the lower end of the socioeconomic pyramid.

Microinsurance offers a safety net to individuals exposed to risks, regardless of their socio-economic class, providing them with the necessary protection to navigate uncertainties, Chan said.

MiN’s Landscape of Microinsurance research series has been published annually since 2010, offering a global benchmark for tracking the adoption of inclusive insurance products and services. The series aims to bridge the people protection gap and create meaningful change in the insurance landscape.