Promoting an Inclusive Insurance Market: Philippines experience

Transcription

1 Promoting an Inclusive Insurance Market: Philippines experience 11 th International Microinsurance Conference Casablanca, Morocco 3 rd 5 th November 2015 Dante Oliver Portula Senior Finance Adviser GIZ RFPI Asia Page 1

2 Outline A. Overview, landscape of Philippines financial systems B. Key results in Microinsurance market C. Market deepening new initiatives D. Market development strategies E. Microinsurance tools used F. Roles of various stakeholders G. Replication some conclusions Page 2

3 A. LANDSCAPE OF PHILIPPINES FINANCIAL SYSTEMS 98.8 Million population (2013), about 24.6 Million or 24.9% are poor. Financial intermediaries/banks (6/2015, BSP): 21 Universal banks, 15 Commercial banks 70 Thrift banks 503 rural banks, 29 cooperative banks 10 NBFIs with quasi banking; 5,939 NBFIs without quasi banking»5,807pawnshops (17,340 offices including branches) Insurance providers (12/2014, IC): 70 non-life companies 27 life companies (including 1 cooperative) 34 MBAs, of which 22 are MI-MBAs 4 composite companies (including 1 cooperative) 1 national reinsurer Insurance outreach (2013, 2014, IC): 32.45% of population has life insurance 31 Million microinsurance coverage 1.78% insurance penetration Page 3

4 B. KEY RESULTS BUSINESS VOLUME* 31.1M (2014) 23.7M (2013) 19.8M (2012) 4.9M (2009) Microinsurance coverage % share of industry coverage MI coverage: 44% MBAs, 32% non-life, 24% life Contributed 1.9% or USD85.5M to net premium of industry Premium: 56% MBA, 6% non-life, 37% life 78% loss ratio * Data source: Insurance Commission Page 4

5 B. KEY RESULTS INDUSTRY PARTICIPATION* 63 Licensed Insurance Providers (48% of 131) 18 Life Insurance Companies (67% of 27) 24 Non-Life Insurance Companies (34% of 70) 21 Mutual Benefit Associations (62% of 34) 164 Microinsurance Products Approved 170 licensed MI agents (48 RBs, 122 indivs.) * Data source: Insurance Commission Page 5

6 B. KEY RESULTS MI RESPONSE AFTER T. HAIYAN Based on the study Aiding the Disaster Recovery Process the effectiveness of microinsurance service providers response to Typhoon Haiyan (authors: Donna Swiderek, John Wipf) commissioned by GIZ-RFPI Asia and Microinsurance Network, 2014 Page 6

7 B. WHAT WERE DONE IN MICROINSURANCE Microinsurance Defined Microinsurance Providers Identified Branding and Slogan Conceived Formalization Process Clarified Microinsurance Agents/Brokers Created (CBOs included) Prototype Product Developed Contracts Simplified Performance Standards Formulated Reporting Standards Established MBA Chart of Accounts Revised Trainings on MI Advocacy and Seminars MI advocacy roadshows Alternative Dispute Resolution Mechanism Established MI institutionalized in the Insurance Code MI division established in the Insurance Commission Page

8 C. MARKET DEEPENING NEW INITIATIVES Enhanced Microinsurance Regulatory Framework and Regulations approved Agriculture Microinsurance (MicroAgri) Framework and Regulations approved Health Microinsurance (MicroHealth) Framework and Regulations drafted Ongoing drafting of Microinsurance Distribution Framework Ongoing drafting of Micropreneed (pension, education, memorial plans) Framework Page 8

9 D. MARKET DEVELOPMENT STRATEGIES Publicprivate collaboration Genuine industry dialogues Public seminars and consultations Multistakeholders approach in MI advocacy Page 9

10 E. MICROINSURANCE TOOLS USED* Training modules Audio Visual Presentations (AVPs) Jingles Flip chart Poster Brochures Frequently Asked Questions (FAQs) * Development of tools were jointly supported by GIZ and ADB JFPR Page 10

11 F. ROLES OF VARIOUS STAKEHOLDERS Legislators Regulators Government Agencies Insurance Providers Formulate laws on microinsurance Create more conducive and enabling regulatory environment for microinsurance Effectively link microinsurance providers and clients Provide basic support services Take lead in directly providing microinsurance products and services that are simple, affordable, innovative, and tailor-fitted to the needs of the low-income sector Page 11

12 F. ROLES OF VARIOUS STAKEHOLDERS Intermediaries Support Institutions Donors Facilitate provision of microinsurance products and services to clients through effective information dissemination, educational activities, and reliable services, including claims Provide business development services and promote financial literacy on microinsurance through capacity building for stakeholders Provide technical assistance and funding support to government and private entities Page 12

13 G. REPLICATION SOME CONCLUSIONS Set clear signal and proportionate regulations to encourage private sector participation Government and donors to enable the market, not spoon feed it. Be smart in subsidies Patience in the processes of dialogues and consultations Regulators and government programs to provide unified, consistent and complementary policy directions. Coordination is key. Adapt inclusive approach to encourage industry participation. Prototype products are more sustainable to having constructive competition Regular monitoring, efficient reporting and knowledge management Page 13

14 Thank you! Page 14