Gov’t to fight poverty through microinsurance

Jan 2007
The Philippines , January, 26 2007 - President Arroyo signed Proclamation 212 declaring January as the Microinsurance month.

She also appointed the Insurance Commission (IC) and the Department of Finance as the lead agencies and enjoined all in the government to “initiate and participate” in various activities. Part of these activities are the launching of Micro-insurance month on the IC’s 58th anniversary celebration at the IC compound in UN Ave.


Roadshows are being conducted and the Insurance Commissioner had dialogues in Isabela and Nueva Ecija starting in December.


Insurance Commissioner Evangeline Escobillo and a team will be in Virac, Catanduanes for the formation of a new Micro Mutual Benefit Association and also to help the victims of typhoon Reming by distributing some relief goods coming from the different insurance companies and the IC.
Microinsurance refers to insurance business activity providing specific insurance products that meet the needs of the disadvantaged for risk protection and relief against distress and misfortune, such as accident insurance, life insurance and burial benefits whose premiums are made affordable to daily wage earners and other self-employed who earn less than the minimum wage.


These are generally offered by insurance companies or mutual benefit associations which are all regulated and supervised by the IC.
The IC has adopted a campaign called Segurado, which stands for Solvency/Stability, Efficiency/Effectiveness, Good Governance, Understandable Coverage/Benefits, Risk Management, Accessibility/Affordability, Distribution/Development and Dividends and Outreach, to strengthen micro-insurers.


Escobillo stressed that this was the agency’s response to the President’s unwavering campaign against poverty.
“We will address poverty by giving the disadvantaged sector preferential access to social protection and low cost financial safety nets in partnership with the insurance industry,” Escobillo said.
Department of Finance (DOF) Secretary Margarito Teves, for his part, explained that micro-insurance is one of the key factors for the government’s micro-finance efforts to succeed.


“Institutions offering loans to small entrepreneurs are more confident if the borrower has some degree of insurance protection,” he said.
The DOF also sees the declaration of January as Microinsurance Month as a strong step to fighting poverty.

Source : Sun Star website

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