ADB's support for Emerging Microinsurance under JFPR9118: “Developing Microinsurance in PHI”

Download ADB's support for Emerging Microinsurance under JFPR9118: “Developing Microinsurance in PHI”

Post on 26-May-2015

373 views

Category:

Economy & Finance

0 download

DESCRIPTION

This presentation was delivered by Mr Hiroyuki Aoki (Senior Financial Sector Specialist-SERD/ SEPF at Asian Development Bank, The Philippines) at the ICMIF-AOA Development Network Seminar (18-20 September 2013; Manila, The Philippines)

TRANSCRIPT

<ul><li> 1. 1 ADBs Support for Emerging Microinsurance under JFPR9118: Developing Microinsurance in PHI Hiroyuki Aoki Senior Financial Sector Specialist, SERD/SEPF Asian Development Bank ICMIF-AOA Development Network Seminar 20 September 2013 Manila, Philippines </li></ul> <p> 2. 2 Outline Introduction What is a Microinsurance? Past ADBs Supports for Microfinance in the Philippines JFPR9118: Developing Microinsurance in PHI What We Achieved Some Thoughts for Next Steps 3. 3 Introduction What is a Microinsurance? 4. 4 What is a Microinsurance? General Understanding: Insurance service for the Poor One of Financial Services for the Poor? The Poor needs risk protection measures in addition to credit, saving, remittance and payment services. A Tool for Social Welfare or Social Protection? Health/medical insurance for complementary to public health system, or alternative in some countries Agro/Crop Insurance for the Farmers? Because the farmers are poor! 5. 5 What is a Microinsurance? Assumption: Microinsurance is the insurance service to accommodate the cash flows of the Poor (sometimes called affordability). Small Amount of Premium? Small policies means many transactions with small amounts. New Technology to Reduce the Costs? Mobile banking, e-payment or Paperless Policies, etc Government Subsidy? Typical for Agro/Crop Products 6. 6 What is a Microinsurance? Challenge: How can we manage various stakeholders under various constraints? Policy makers Regulators/Supervisors Other Government Agencies Microinsurance Providers/Distributors Beneficiaries Communities/Local Governments Development Partners We need some common understanding!!! 7. 7 Past ADBs Supports for Microfinance in the Philippines 8. 8 ADB Microfinance Development Strategy in 2000 Goal To ensure permanent access to institutional financial services for the majority of poor and low income households and their microenterprises through the development of sustainable microfinance systems Definition of Microfinance Broad range of financial services such as deposits, loans, payment services, money transfers and insurance to poor and low income households and their microenterprises 9. 9 Philippine Microfinance Strategy Approach Increased role of the private sector Government to focus on establishing the enabling policy and regulatory environment Adoption of market oriented financial and credit policies Non-participation of government line agencies in implementing credit programs 10. 10 Past ADB Supports for Microfinance Microfinance Development Program (2005-2007) A program loan that called for further development of the microfinance sector through the strengthening of the microfinance policy environment, improvement of regulatory capacity, MFI capacity, and financial literacy JFPR9088: Developing Financial Cooperatives (2006-2010) Support to the MDP program loan above Assisted the Government in further improving the regulatory environment for credit and savings cooperatives engaged in microfinance services. 11. 11 JFPR9118: Developing Microinsurance in PHI 12. 12 Why Microinsurance Development? Past projects mostly address the savings and credit needs of the poor With sustainable access to savings and credit services, both MFIs and government recognized the need for risk protection Low income households need insurance to address their risk protection Then, the need to develop the Philippine Microinsurance Industry 13. 13 JFPR9118: Developing MI in PHI Four-year grant project with the following three components (2008-2012) Component 1: Improving Regulatory Framework for Microinsurance Component 2: Strengthening the Capacity of Government regulators and Microinsurance Providers Component 3: Promoting Financial Literacy on Microinsurance 14. 14 What are the progress? Component 1: Improving Regulatory Framework for Microinsurance The Microinsurance Regulatory Framework was prepared in 2009 The Performance Standards (PS) SEGURO for Microinsurance was developed in 2010 S for Solvency, E for Efficiency, G for Governance, U for Understanding of Product by Clients, R for Risk Based Capital and O for Outreach 15. 15 What are the progress? Component 2: Strengthening the Capacity of Government regulators and Microinsurance Providers The Module and Training Program on the Performance Standards were developed and implemented for both Regulators and Microinsurance Providers in 2011/2012 16. 16 What are the progress? Component 3: Promoting Financial Literacy on Microinsurance The Materials for Financial Literacy Campaign was developed in 2009 Regional Financial Literacy Roadshow has been implemented in 2011/2012 17. 17 What We Achieved 18. 18 Formalization of Microinsurance Sector Approval and Launch of the Regulatory Framework for Microinsurance Revised Regulation on Microisnrance Products Formalization of Informal Microinsurance Schemes Training and Licensing of Agents Insurance Commission has got the ability and responsibility to monitor the Microinsurance Industry and related reliable statistics became available! 19. 19 Market Development of Microinsurance Product Development More variety of products from life and non-life, not just a credit life product (about 60 products in 2011, 40 life and 20 non-life) Product Providers New entries from insurance industry and diverse players in the market, MBAs, Cooperatives and Insurance Companies (44 providers in 2011, 17 MBAs, 2 Coops and 25 Insurance Companies) Outreach 3.5 million policies were issued in 2011 26.7 million of population out of 90 million are below poverty line. Well above 10% coverage for the Poor. 20. 20 Some Thoughts for Next Steps 21. THANK YOU! Hiroyuki Aoki Senior Financial Sector Specialist, SERD/SEPF haoki@adb.org </p>

Recommended

View more >