By Chino S. Leyco
Individuals covered by microinsurance catering to low-income people further increased in the first-half of the year, preliminary data from the Insurance Commission showed.
Insurance Commissioner Dennis B. Funa said that 36.55 million individuals are covered by microinsurance products at end-June this year, up by 28.6 percent compared with 28.42 million in the same period last year.
“The mutual benefit associations (MBAs) sector [remained] as the consistent frontrunner in terms of number of lives covered and premium production,” Funa said in a statement.
Taking up 58.59 percent of the market share in terms of number of individuals covered, the mutual benefit association sector covered 21.45 million members and dependents as of June this yea, an increase of 24 percent year-on-year from 17.28 million.
“We also saw a significant increase in the number of insured covered by the life insurance sector to 11.45 million lives covered as of end of June, up by 37.58 percent from 8.32 million during the same period last year,” Funa said.
“The non-life insurance sector likewise recorded a 29.31 percent increase in the number of individuals covered by microinsurance to 3.65 million from 2.82 million year-on-year,” he added.
Meanwhile, the commission also reported that premium productions and contributions reached P3.71 billion in the first six-months of the year, up by 12 percent from P3.3 billion in the previous year.
Based on the sector’s performance report as of the second quarter, the MBAs accounted for 59.3 percent of the total premium production amounting to P2.2 billion, followed by the life insurance with 29.51 percent or P1.1 billion, and the non-life insurance with 11.19 percent or P415.30 million.
At present, 42 companies are engaged in providing microinsurance products composed of 22 MBAs, 11 life insurance companies, and nine non-life insurance companies.
Earlier, Philippine American Life and General Life and General Insurance Co. (Philam Life) and Allianz PNB Life Insurance, Inc. both announced their respective plans in venturing into the microinsurance business.
“The consistent growth in the number of lives insured and premium production demonstrates the effectiveness of the microinsurance scheme in providing insurance solutions to everybody especially to the low-income households,” said Commissioner Funa.
“And we are pleased that more insurance companies are expressing their interest in developing new microinsurance products to help narrow the country’s protection gap,” he added.