2025 National microinsurance forum: Championing financial inclusion


FROM THE MARGINS
 

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Last Jan. 27, 2025, the SMX Convention Center in Pasay City became the epicenter of groundbreaking discussions as over 400 stakeholders gathered for the National Microinsurance Forum. This annual event, held in celebration of National Microinsurance Month, underscored the critical role of microinsurance in fostering a more inclusive and resilient society. Organized by the Microinsurance MBA Association of the Philippines Inc. (MiMAP) in partnership with the Insurance Commission and key players, the forum showcased microinsurance’s profound impact on low-income communities and emphasized partnerships as a driving force for financial inclusion. 


The forum opened with inspiring remarks from industry leaders, including Insurance Commissioner Reynaldo Regalado, BSP Assistant Governor Pia Roman Tayag, and NEDA Director Desiree Joy Narvaez. It was followed by insightful briefings on the regulatory challenges, the socio-economic environment in which microinsurance operates, and the opportunities and threats facing the microinsurance industry.  I am glad that the regulators’ speeches underscored a collective commitment to building a robust microinsurance ecosystem prioritizing inclusivity, innovation, and sustainability – aptly demonstrated by the awarding of the Micro-Takaful insurance license to CARD MBA.  This is a significant step toward reaching Muslim communities, one of our most vulnerable and financially-excluded sectors. 


Microinsurance, a rapidly expanding sector, has become a lifeline for millions of Filipinos.  Offering accessible and affordable risk protection, microinsurance covered 57 million lives as of end-December 2023, 51 percent of which are insured by microinsurance mutual benefit associations (Mi-MBAs). MiMAP, serving as a resource hub for 20 Mi-MBAs, has been instrumental in this growth, providing governance, management, and operational support to enhance the sector’s reach and efficiency.


Microinsurance is more than just a safety net—it is a vehicle for empowerment and resilience. For millions of poor and marginalized Filipinos, it provides financial protection that helps them navigate unforeseen events like illness, natural disasters, or the death of a family breadwinner. By covering basic needs, such as hospital expenses or funeral costs, microinsurance ensures families are not forced to borrow from loan sharks or sell essential assets during emergencies. Families with microinsurance are more likely to send children to school, invest in small businesses, and participate in community activities—laying the foundation for a more inclusive and resilient society.

 

Panel sessions and takeaways


With the theme "Partnerships for Greater Financial Inclusion," the forum featured three panel discussions that explored strategies to expand microinsurance coverage:

  • Partnerships for strengthening governance and sustainability for microinsurance
     
  • Partnerships for Islamic insurance: Is there a need for microtakaful in the Philippines?
     
  • How can technology make a difference in expanding and deepening microinsurance outreach?


I was honored to join industry leaders in the first panel, composed of Commissioner Regalado,  Michael Rellosa (Philippine Insurers and Reinsurers Association), Rahul Hora (Philippine Life Insurance Association), and Jonathan Batangan (Microinsurance Intermediaries and Practitioners Association of the Philippines). I appreciated Commissioner Regalado’s usual support of microinsurance, which is important not just because of its contribution to the economy in terms of premium contributions, but its penetration ratio or number of lives insured. 


Our panel’s discussion centered on the role of microinsurance in the achievement of the Social Development Goals (SDGs), as well as the importance of self-regulation for the different insurance industry sectors. Since the industry is already matured, we noted that Self-Regulatory Organizations (SROs) can be organized, with stakeholders following compliance requirements and safeguards for consumer protection.  SROs can strengthen the insurance industry, with policy support, tax incentives, and continued financial literacy and education.


The role of fintech and digital applications in reaching more sectors and ensuring speedy payment claims was also discussed, the panel noting the need to reach the underserved and unserved segments through different distribution channels like microfinance institutions, MBAs, pawnshops, and other networks, including 4Ps beneficiaries, tricycle operators and drivers’ associations, pawnshops, among others.


The panel discussion on Microtakaful focused on how the Sharia-compliant insurance model addresses the unique needs of Muslim communities, while the panel discussion on technology highlighted its transformative role in reshaping the industry.  


One of the key takeaways was the need for continued collaboration to overcome barriers and create lasting impact. Public-private partnerships, coupled with regulatory support, can drive the development of products tailored to specific needs, like agricultural microinsurance and microhealth products.
 

Shared vision for the future
 

The 2025 National Microinsurance Forum reaffirmed the sector’s pivotal role in empowering low-income communities to navigate uncertainties. Microinsurance not only provides financial protection but fosters resilience, self-reliance, and community development.


The message was clear: microinsurance is more than just a financial product—it is a catalyst for transformative change. By fostering partnerships, embracing innovation, and strengthening regulatory frameworks, the microinsurance industry can continue to provide meaningful protection to millions of Filipinos, paving the way for a more inclusive and equitable future.

 

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“Digitalization and the use of insurtech innovations in creating microinsurance products is a promising opportunity that we need to explore.” – Insurance Commissioner Reynaldo Regalado

 

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)