The Insurance Commission (IC) plans to offer incentives to new players in the microinsurance sector to boost financial inclusion in the Philippines.
Insurance Commissioner Reynaldo A. Regalado revealed plans to introduce incentives and ease regulations for insurance firms entering the microinsurance market.
Recent IC data showed a 19.6% year-on-year increase in microinsurance premium income to P10.16 billion by end-September 2023.
While the microinsurance industry has grown, it only had 49 companies due to challenges in high-risk segments. Digital innovations are seen as a potential boost for microinsurance, especially in reaching remote populations.
The microinsurance industry is also exploring growth opportunities in agriculture, facing challenges like poor sales and high loss ratios. Agri-insurers struggle due to limited data availability at the municipal level.
Efforts are underway, led by the United Nations Development Programme, to collaborate with government departments and create a comprehensive database for the agri-insurance sector.
