THE PHILIPPINE GOVERNMENT’S RESPONSE By. Dir. Joselito Almario

MAJOR FINANCIAL PRODUCTS OF FINANCIAL INCLUSION CreditSavings Payment Transfers RemittancesInsurance

POOR INSURANCE PENETRATION IN LOW INCOME SECTOR ABSENCE OF POLICY AND REGULATORY FRAMEWORK Vague government policy direction Unclear regulations and guidelines on microinsurance Hesitant providers INAPPROPRIATE PRODUCTS Not tailor-fitted Unaffordable Complex and complicated contracts Cumbersome requirements LACK OF AWARENESS Distrust of insurance providers “Leave it to destiny” mentality No immediate benefits Additional financial burden

AFTER MICROCREDIT, NOW MICROINSURANCE 4  Work has begun with private sector and technical assistance support from the Asian Development Bank (ADB) and the German International Cooperation (GIZ) Microinsurance National Strategy and Regulatory Framework launched Government Circulars on Microinsurance Issued Perform- ance Standards Micro- insurance Product Development Financial Literacy and Advocacy

INCREASING SUPPLY PROVIDERS Commercial Insurers Coop Insurance Societies Mutual Benefit Associations Pre-Need Companies HMOs DELIVERY MECHANISMS Direct Delivery thru non- traditional means Partnerships and Tie-ups with MFIs Microinsurance Agents and Brokers ENABLING ENVIRONMENT Lower capitalization requirements Additional admitted assets Relaxed licensing requirements for agents Performance Standards

INCREASING DEMAND INNOVATIVE PRODUCTS AffordableSimple contracts Tailor-fitted to needs Relaxed Terms and Conditions FINANCIAL LITERACY CAMPAIGNS Comprehensive encompassing all stakeholders Cover all geographical areas Learning centers CLIENT PROTECTION Formalization of informal insurance providers Redress and grievance mechanisms Use of Alternative Dispute Resolution

MOVING FORWARD INCREASE PUBLIC AWARENESS ON INPORTANCE OF RISK PROTECTION BUILD CAPACITIES OF PROVIDERS AND DELIVERY CHANNELS SUPPORT PRODUCT INNOVATIONS THROUGH RELAXED REGULATIONS PROMOTE PUBLIC- PRIVATE SECTOR PARTNERSHIPS BY CONSENSUS BUILDIG BUILD ON THE CONDUCIVE POLICY AND REGULATORY ENVIRONMENT