MICROINSURANCE coverage went up by 15.39% year on year in the first quarter, driven mainly by the mutual benefit association (MBA) sector, the Insurance Commission (IC) said in a statement on Tuesday.
A total of 51.71 million lives were covered by microinsurance policies issued by insurance companies and MBAs as of end-March, up from 44.81 million lives in the same period last year, the IC said.
Of the 51.71 million insured lives, 28.82 million or 55.74% are insured by MBAs. This was a 11.95% increase from the 25.74 million in the same period last year.
Meanwhile, lives covered by life insurers through microinsurance policies rose by 12.01% to 16.75 million from 14.95 million.
Lives insured by nonlife insurance companies through microinsurance products jumped by 49.13% to 6.14 million from 4.12 million.
Total microinsurance premiums collected by insurance companies and MBAs also increased by 22.48% year on year, amounting to P3.25 billion at end-March from P2.65 billion, the IC said.
Broken down, microinsurance premiums collected by MBAs rose by 13.43% to P1.78 billion from P1.57 billion.
Premiums collected by life insurance companies likewise grew by 12.02% to P840.1 million from P749.96 million.
Microinsurance premiums collected by nonlife insurance companies jumped by 88.83% to P627.64 million from P332.38 million.
The IC said there were 48 regulated entities actively selling microinsurance products, made up of 23 MBAs, 12 life insurers, and 13 nonlife insurance companies.
“The Insurance Commission actively promotes microinsurance as a means for financial inclusion by allowing low-income earners to hedge against various risks such as death, injury and damage to livelihood or property,” it added.
Microinsurance products are those that can be purchased for premiums below 7.5% of the minimum wage in Metro Manila, computed daily.
These include micro-life and health insurance, and micro-agricultural insurance products.
“There are also micro pre-need products available, such as micro-memorial, educational, and pension plans,” the IC said. — AMCS
