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Microinsurance now covers 50 million Pinoys
Citing unaudited quarterly reports from microinsurance providers such as mutual benefit associations (MBAs) and life and non-life insurance companies, the IC said the total estimated number of lives covered by microinsurance products ending the fourth quarter of 2020 reached 50.35 million.
STAR/File

Microinsurance now covers 50 million Pinoys

Czeriza Valencia (The Philippine Star) - May 7, 2021 - 12:00am

MANILA, Philippines — More Filipinos were covered by microinsurance as of last year, even with less collection of premiums by providers after extensions were made in the payment of contributions due to the pandemic, said the Insurance Commission (IC).

Citing unaudited quarterly reports from microinsurance providers such as mutual benefit associations (MBAs) and life and non-life insurance companies, the IC said the total estimated number of lives covered by microinsurance products ending the fourth quarter of 2020 reached 50.35 million.

This marked an 11.56 percent increase from the 45.13 million lives covered the fourth quarter of 2019.

Insurance Commissioner Dennis Funa said if the reports are confirmed by audited statements for 2020, the government’s target of having 50 million Filipinos covered by microinsurance would have been achieved two years ahead of the target year of 2022.

As of the last quarter of 2020, there were 44 firms providing microinsurance products in the country, 23 of which are MBAs, 10 life insurers and 11 non-life insurers.

During the period, MBAs continued to have the largest market share in terms of coverage, accounting for 57.52 percent of the total coverage at 28.96 individuals.

The life and non-life insurance sectors, meanwhile, accounted for 29.19 percent and 13.29 percent of the total coverage at 14.7 million and 6.69 million lives covered.

Difficult economic conditions last year slashed premium collections by micro insurers.

As of the fourth quarter of last year, microinsurance providers collected a total of P7.8 billion in premiums, lower by 14.5 percent from the P9.12 billion collected as of the last quarter of 2019.

Premium collections by MBAs amounted to P4.46 billion, 57.22 percent of the total.

Meanwhile, life insurers were able to collect P2.42 billion in premiums, accounting for 31.07 percent of the market, while non-life insurers collected P913.51 million in premiums, accounting for 11.71 percent of the market.

Compared with the last quarter of 2019, premium collections fell across-the-board by 25.46 percent in the non-life sector, 15.13 percent in the MBA sector, and 8.17 percent in the life sector.

Nonetheless, microinsurance coverage remained higher year-on-year as decreases in coverage in the non-life sector was offset by increased coverage in the MBA and life sector.

“It may be attributed to the effects of the extension of grace periods in microinsurance products and the grant of similar extensions in payment of microinsurance premiums or contributions due to the COVID-19 pandemic,” said Funa.

Among life insurers, the most coverage were provided by Pioneer Life Inc., followed by Climbs Life and General Insurance Corp., United Coconut Planters Life Assurance Corp., Cooperative Insurance System of the Philippines and Paramount Life and General Insurance Corp.

Among non-life insurers, the most coverage by microinsurance policies were provided by Pioneer Insurance & Surety Corp., followed by Visayan Surety & Insurance Corp., CARD Pioneer Microinsurance, Inc., UCPB General Insurance Co. Inc. and The Mercantile Insurance Co. Inc.

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