MICROCAPITAL BRIEF: Philippine Government Promote Microinsurance With Support from Asian Development Bank (ADB)

The Philippine Department of Finance has announced that the government is “promoting micro-insurance as strategy to protect low income earners and the informal sector from uncertain events or risks” such as “typhoons, floods and earthquakes.” The Asian Development Bank (ADB) is providing technical assistance for the program, which includes financial literacy programs and approvals of insurance companies to provide microinsurance products. The program so far covers 3 percent of the target 25 million low-income Filipinos, who include store owners, farmers, fishermen and microentrepreneurs. The goal is to insure 5 million people by 2020 [1] [2].

As of 2010, the 93 microfinance institutions (MFIs) in the Philippines that report to the US-based nonprofit Microfinance Information Exchange (MIX) have aggregate deposits of USD 454 million, USD 632 million in loans, 3 million active borrowers and 3.7 million depositors.

By Brendan Millan, Research Associate

About Asian Development Bank (ADB): Established in 1966 and headquartered in Manila, the Philippines, ADB is a development finance institution that consists of sixty-seven members, of which forty-eight are located in the region. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants, equity investments and guarantees to private companies in member countries. ADB reported a total capitalization of USD 64 billion as of December 31, 2010.

Sources and Resources:

[1] Philippine Information Agency: “Microinsurance Puts financial Protection Within Reach of Poor” by Jaime S. Cabag. http://www.pia.gov.ph/news/index.php?article=901330395573

[2] Business World: “Life Insrance Industry Sees Double-digit Growth This Year.”, http://www.bworldonline.com/content.php?section=Economy&title=Life-insurance-industry-sees-double-digit-growth-this-year&id=46749

MicroCapital.org Article, February 13, 2012, “Microcredit, Microinsurance Client Numbers Rising in The Philippines”, https://www.microcapital.org/microcapital-brief-microcredit-microinsurance-client-numbers-rising-in-the-philippines/

MicroCapital.org Article, February 9, 2012, “Microfinance Credit Bureau (MiDAS) Launched by Microfinance Institutions in the Philippines”, https://www.microcapital.org/microcapital-brief-microfinance-credit-bureau-midas-launched-by-microfinance-institutions-in-philippines/

MicroCapital.org Article, December 12, 2011, “Philippine Central Bank May Raise Microfinance Loan Ceiling, Roll Out Central Credit Information Corporation (CCIC) by Year End”, https://www.microcapital.org/microcapital-brief-philippine-central-bank-may-raise-microfinance-loan-ceiling-roll-out-central-credit-information-corporation-ccic-by-year-end/

MicroCapital.org Article, January 19, 2011, “Bankers Association of the Philippines – Credit Bureau Incorporated (BAP-CB) Offers Rural Banks, Microfinance Providers Access to Credit Information System”, https://www.microcapital.org/microcapital-brief-bankers-association-of-the-philippines-bap-to-launch-online-credit-information-bureau-run-by-microfinance-institutions-mfis/

MicroCapital Universe profile: Asian Development Bank (ADB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Development+Bank+%28ADB%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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