The Philippine branch of Manulife Financial, a Canadian financial services provider, recently announced that it plans to add microinsurance to its product line-up. Manulife will offer life and accident insurance to low-income Filipino households with distribution handled by nongovernmental organizations (NGOs) and is also considering selling insurance through stores and post offices. In 2010 Manulife Philippines reported that income from insurance premiums totaled PHP 4.9 billion (USD 112 million), up 40 percent from 2009.
Manulife estimates that less than 10 percent of Filipinos are covered by life insurance. Analysts at Manulife believe poor people often consider insurance unnecessary, focusing their spending primarily on basic needs. David Wong, senior vice president of Manulife, said that the solution is to offer insurance at a price that low-income individuals can afford. Mr Wong reportedly said that the company’s microinsurance business in Vietnam has been successful and expects the Philippines business to be equally profitable.
By Julie Moksim, Research Associate
About Manulife Financial: Manulife Financial is a Canadian financial services company with a network that covers twenty-two countries and territories. Manulife’s products and services include individual life insurance, group life and health insurance, pension products, annuities, mutual funds and banking products. As of 2011, the company offers microinsurance in Vietnam and is launching the offering in the Philippines. Manulife also offers asset management services to institutional customers. In Canada and Asia, the company operates under the name Manulife Financial. In the United States, it operates primarily under the John Hancock brand name.
Sources and Additional Resources:
Philippine Daily Inquirer: “Manulife Unit in PH Eyes Sale of Microinsurance Products” by Michelle Remo, February 21, 2011, http://business.inquirer.net/money/topstories/view/20110222-321657/Manulife-unit-in-PH-eyes-sale-of-micro-insurance-products
MicroCapital.org Brief, February 4, 2011: Microinsurance Network Reviews 2010 Work on Performance Indicators, Technology, Standards Development, https://www.microcapital.org/microcapital-brief-microinsurance-network-reviews-2010-work-on-performance-indicators-technology-standards-development/
MicroCapital’s Microfinance Universe Network: Manulife Financial
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Manulife+Financial
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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