MICROINSURANCE: POLICY AND REGULATORY FRAMEWORK – WHY, HOW AND WHAT

BUILDING THE BACKBONE IN THE PHILIPPINES

INTERNATIONAL MICROINSURANCE CONFERENCELEARNING SESSION NIGERIAABUJA, NIGERIA SEPTEMBER 10-11, 2013

JOSELITO ALMARIODEPARTMENT OF FINANCE, PHILIPPINES

WHY THE FRAMEWORK

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

WHEN IT ALL BEGAN

GOVERNMENT SECTO

R

PRIVATE

SECTOR

2009 CONVERGENCE

POLICY/ REGULATORY BODIES

INSURANCE PROVIDERS (LIFE/NONLIFE - COMMERCIAL, COOPS, MUTUALS)INTERMEDIARIESMICROFINANCE INSTITUTIONSMAJOR STAKEHOLDERS

TECHNICALWORKING GROUPS

PUBLICCONSULTATIONS

HOW THE FRAMEWORK WAS DONE

Theme Identification

Creation of Technical Working Group

Drafting of framework

Consultation with public -

finalization of framework

Drafting and

issuance of guidelines/ regulations

Nationwide seminars, trainings

and

workshops

WHAT WERE COVERED

Market ConductProduct

Innovation and Development

Financial Literacy and

Advocacy

Consumer Value and Protection

POLICY AND REGULATORY

ENVIRONMENT

WHAT ARE THE LESSONS LEARNED

Public-private sector collaboration from the onset is critical

for financial inclusion reforms

Private sector ownership of the reforms ensures

continuity

Multi-sector representation is an effective venue/fora for continuous policy

dialogues

A comprehensive framework should let markets work - for all stakeholders

A CONDUCIVE AND ENABLING POLICY AND REGULATORY FRAMEWORK –

BUILDS THE BACKBONE FOR INSURANCE MARKETS TO WORK

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