The Philippine Insurers and Reinsurers Association (PIRA) is optimistic about opportunities to expand microinsurance, which could improve insurance penetration in the country.
In a press briefing, PIRA executive director Michael F. Rellosa said, “We see a lot of opportunities to grow the microinsurance segment. First of all, Senator [Cynthia A.] Villar is drafting a Bill to come up with new products for agri insurance — not only for crops but also for livestock.”
“The government is now opening up agricultural insurance to the private sector,” he said. “We’re creating new products for our farmers.”
He noted that the state-owned Philippine Crop Insurance Corp is currently the sole firm offering crop insurance, according to a report in Business World.
Mr Rellosa added that micro agri insurance is a first step to diversifying microinsurance products. He also floated the idea of micro health and micro burial insurance products.
PIRA is optimistic that more non-life insurers will start offering microinsurance products in the future.
There are only four firms which are currently offering these products such as Malayan Insurance and Pioneer Insurance & Surety Corp.