MANILA, Philippines — Filipinos continue to be more aware of the need for social protection evident in the increase in insurance contributions from low-income people, reaching P6.7 billion in the first semester.
Data released by the Insurance Commission (IC) showed that total premium from microinsurance providers went up by 22.68 percent to P6.7 billion from January to June compared to P5.46 billion in the same period last year.
Similarly, the number of lives insured under microinsurance products inched up seven percent to 52.54 million in end-June from 49.03 million Filipinos.
Microinsurance is specifically targeted toward low-income households or those who have limited savings. It covers compensation for illness, accidents and death.
The IC has been noting improvement in collected premiums, as well as the number of insured lives, amid better public awareness of the necessity of having affordable insurance products.
The IC has been promoting microinsurance among low-income earners, as a means to prepare for emergencies that can drain resources, such as deaths, injury, and damage to property or livelihood.
Of the total premiums in the first half, mutual benefit associations (MBAs) covered the bulk or 54 percent at P3.63 billion. This is an 11 percent growth from the P3.27 billion in 2022.
Life insurers also saw contributions improve by 20 percent to P1.79 billion, covering 27 percent of the total.
Non-life insurers, on the other hand, cornered the remaining 19 percent at P1.28 billion, surging by a little over 80 percent from the 2022 level of P695.29 million.
The number of lives insured by MBAs, life and non-life insurance companies also increased across the board.
As of the first semester, there are 48 regulated entities actively engaged in the sale of microinsurance.
Microinsurance products include micro pre-need, micro-life and health insurance, and micro-agricultural insurance.
Many Filipinos who buy microinsurance are daily wage earners. The premiums should not be more than 7.5 percent of the current daily minimum wage in Metro Manila, computed on a daily basis. – By:Louise Maureen Simeon – The Philippine Star
