This regulatory impact assessment in microinsurance (RIA-MI) is the first effort of this nature. Drawing on other RIA methodologies, the RIA-MI was specifically developed for testing with one of the pioneers in microinsurance regulation, the Philippines.
This insurance needs assessment aims to investigate the need for and experience with insurance products of MSMEs in the Philippines. With 99 percent of registered enterprises in the Philippines being MSMEs they are a crucial part of the country’s economy. The study at hand sheds light on risks these enterprises are exposed to and moreover, how business owners cope with an occurring risk as well as how they plan for relief in the long run. On the supply side this study assesses what products are already available for MSMEs, on which ways these products are distributed to the clients and what challenges the insurers face on the market as well as on part of regulation.
On 8th November 2013, Typhoon Haiyan, known locally in the Philippines as Yolanda, was a Super Typhoon with the highest wind speeds ever seen on land. By the end of the day, the typhoon would have crossed land six times and left a path of destruction that impacted over 16 million people and displaced almost 4.1 million people2 . In addition to the high winds, the typhoon had an unprecedented storm surge that was the main cause of death for the 6,300 casualties.
Most recently, the Philippines was cited as the third best country with the most conducive environment for financial inclusion among 55 countries in the world. Despite this accolade however, only about 63% of the total munipalities in the country have banking offices and only 2 out of 10 households have a deposit account in a bank.
Microinsurance is the silent offspring of the insurance and financial inclusion domain. Although informal and community-based insurances have existed for a long time, the history of formal insurance provision is relatively young in Asia and Oceania. To create a vibrant sector and understand the dynamics of this industry, it is imperative that the stakeholders are made aware of the status of microinsurance.
Erratic and extreme weather caused by climate change due to global warming, as well as exposure to environmental hazards, result in Natural Catastrophes (NatCat). Activities aimed to develop resilience against various risks focus on policy enhancements towards disaster preparedness and mitigation. The development of risk transfer instruments such as Disaster Risk Finance is part of adaptation measures which have yet to be fully understood, designed and implemented in Asia.
The Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia (RFPI Asia), GIZ's flagship voyager on inclusive insurance also known as RFPI Asia, set sail in Manila two years ago. In its maiden voyage, RFPI Asia sails toward the harbors of MEFIN partners as Indonesia, Mongolia, Nepal, Philippines, Thailand and Vietnam with one binding purpose: The regulatory and supervisory conditions for effective insurance protection for low-income sectors in Asia are improved.
German Development Cooperation (GIZ) and Insurance Institute for Asia and the Pacific (IIAP), sole insurance training institution in the Philippines, formally sealed last month the microinsurance training partnership agreement. The partnership combines four decades of expertise in capacity development. Predominantly, the agreement will mainstream inclusive insurance (II) or microinsurance (MI) through capacity building programs to enhance the capacities of insurance regulators, companies and support institutions.
Think of microinsurance products for the poor Indonesians. Dr. Muliaman D. Hadad, chairman of the Board of Commissioners, Otoritas Jasa Keuangan (OJK) - the Financial Services Authority of Indonesia has nailed the point home before the insurance industry in his recent public speech at the Pasar Asuransi Micro Indonesia held at Bogor, West Java.
Microinsurance in Asia and Oceania is growing fast. A number of governments such as India, Indonesia and the Philippines have started developing a regulatory framework to facilitate the development of innovative solutions. As more and more stakeholders see the potential of microinsurance for the insurance industry and for economic development in the region, the demand for detailed data on the status of microinsurance grows. However, until now, only sparse information on the latest trends, main growth drivers and key market development topics has been available.
Dokumen ini adalah Grand Design Pengembangan Asuransi Mikro Indonesia yang dihasilkan oleh Tim Pengembangan Asuransi Mikro – Otoritas Jasa Keuangan (Tim), sebuah tim yang dibentuk untuk mengkaji, mengembangkan dan mengimplementasikan asuransi mikro dan asuransi mikro syariah di Indonesia. Anggota tim dimaksud berasal dari Otoritas Jasa Keuangan, Asosiasi Asuransi Asuransi Umum Indonesia, Asosiasi Asuransi Jiwa Indonesia, dan Asosiasi Asuransi Syariah Indonesia.
Referring and on the basis of the Paragraph of 6.1.2 , 6.2.3. of the Law of Authority of The FRC and the Paragraph 13.1.3 of the Insurance Law have the announcement that: I. The Resolution No198 which was approved on 22nd of May,2013 by FRC, there should be added the following amendments to the Paragraph 2 of 2.1 and Paragraph 3 of 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10 of the Regulation "The requirements put in front of the Insurers and the Resolution for defining the indicators to be followed by The Insurers".
It is expedient to undergo management relating to operation and management of business in micro insurance business of insured, the Beema Samiti (Insurance Board) by exercising the right delegated by Section 8 of Insurance Act 2049 have formed the following directives relating management and operation in micro insurance business.
The development of the Philippine Microfinance In‐ dustry proved that the provision of formal financial services, particularly savings and credit, to the poor is a viable and sustainable activity. A large number of private financial institutions, notably rural, cooperative and thrift banks, cooperatives and non‐government organizations, including commercial banks acting as wholesaler of microfinance funds, are now actively engaged in providing the poor greater access to micro credit to finance their livelihood and small business activities.
The Medium Term Philippine Development Plan (MTPDP) recognizes the role of government to put ap‐ propriate safety nets and risk protection for the poor. “The poor and marginalized groups in the Philippines face various risks – temporary and permanent loss of employment, inability to cope with abrupt changes in the prices of basic commodities, illness and physical injury, violence and the lack of peace and order, old age, etc.
Nearly 28 million Filipinos have low income and live below the poverty threshold (Philippine Poverty Situation, 2006). Typically a family of three to six members, commonly residing in densely populated urban areas or remote rural areas with little or no access to health care, usually taking odd jobs, usually short on budget to maintain a healthy lifestyle, they, too, are most vulnerable to various risks that hamper their development.
Animation About Disaster (English version)
Animation About Disaster (English version)
This market assessment was carried out by the Deutsche Gesellschaft fur International Zusammenarbeit Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia program (GIZ RFPI Asia), funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). Its completion is made possible by the support of the Otoritas Jasa Keuangan (OJK, Financial Services Authority) of Indonesia and the Asosiasi Asuransi Syariah Indonesia (Indonesia Syariah Insurance Association). GIZ RFPI Asia expresses its gratitude to colleagues from OJK and AASI who were instrumental in the design, implementation and evaluation of the results of this assessment.
This market assessment was carried out by the Deutsche Gesellschaft für Internationale Zusammenarbeit Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia program (GIZ RFPI Asia), funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). Its completion was made possible by the support of the Financial Regulatory Commission of Mongolia (FRC). GIZ RFPI Asia expresses its gratitude to colleagues from the FRC who were instrumental in the design, implementation and evaluation of the results of this assessment.