Philippines was one of the six countries first to sign the MEFIN Declaration of May 2013 (also known as Cebu Declaration) and signify support to the promotion of inclusive insurance as a strategy for poverty reduction in the region. In January 2016, the Philippines renewed its commitment to the MEFIN Network, which was then formalized as a regional platform for peer-to-peer exchange of knowledge and experiences in inclusive insurance.
The Insurance Commission is the insurance regulator of the Philippines. An agency under the Department of Finance, the Commission supervises and regulates the operations of insurance and reinsurance corporations. In 2015, it was assigned authority to supervise and regulate pre-need companies. During the same year, the supervision and regulation of Health Management Organizations was also transferred to the Commission from the Department of Health.
The Philippines is home to an estimated 108 million people with diverse languages, religions, and ethnicity. The Philippines is the world's fifth-largest island country with an area of 300,000 km².
Located in the western Pacific Ocean, it is composed of 7,107 islands grouped into three geographical areas: Luzon, Visayas, and Mindanao. Located on the Pacific Ring of Fire and close to the equator, the Philippines is prone to earthquakes and typhoons but also endowed with abundant natural resources and some of the world's greatest biodiversity.
Philippines Gini ratio, the coefficient that measures the inequality among income distribution, lies at 44.0 and the HDI at 0.712, ranking 106th in the world.
The Philippines Insurance Commission has been an active member of the MEFIN since May 2013 and recognizes the relevance of peer-to-peer exchange among regulators and the insurance sector to develop the microinsurance market. Microinsurance operators have been active in the Philippines for the past ten years, through three regimes, operating on four pillars. Clear-cut government policies increased participation resulting in 38 million insured individuals in 2018 and to 40 million covered individuals in 2019.
One of the recent milestones of the Philippine's insurance industry was the signing of Republic Act No. 10607 President Benigno S. Aquino Ill last August 15, 2013. It amended the 38-year old Presidential Decree No. 612, otherwise known as "The Insurance Code". An increase in the paid-up capital requirements for both life and non-life insurance companies was introduced in the amended Insurance Code to strengthen the country's insurance sector.
GIZ RFPI Ill is actively developing solutions and new strategies for implementing Climate Risk Insurance in the Philippines. In 2019, several TWG and NTF meetings were held. At the moment, every effort is being made to ensure that the new products developed cover at least 4 million beneficiaries.
The Philippines' geographic location and characteristics: high exposure, fragility, and lack of coping capacity make it a high-risk country. Its ten-year moving average of annual disaster events shows 1,800 deaths and economic losses of USO 1.6 billion. Around 38.9 million Filipinos and 5% from the informal sector are highly at risk from losses. The lack of best practices on financial modelling, particularly for the poorest populations, is affecting society.