The Philippines is now being emulated as a gold standard in microinsurance. And Asia Insurance Review (AIR) recently came up with an article showing four ways that helped the Philippines achieve this feat. In an article published in its April 2022 issue, AIR interviewed the head of a Philippine microinsurance company who provided insights on how the country became a role model in providing insurance protection to underserved customers. CARD Pioneer president and Microinsurance Network board chair Mr. Lorenzo Chan told AIR that four major factors contributed to the rise of microinsurance in the Philippines. And these were: 1. The shift from company-centric to customer-centric. 2. Focusing on genuine claims. 3. Innovative approaches. And 4. Dealing with negative stereotypes. According to Mr. Chan, the unprecedented growth of microinsurance in the Philippines can be credited to the shift of mindset from "company- centric" to "customer-centric". “Rather than starting from our requirements which were originally crafted for the more traditionally affluent and corporate markets, we focused attention on the lower-income sector and what they needed,” he said. The AIR article noted that microinsurance companies were mindful of the fact that insurance is still a product that needed to be sold and were well aware of the need to build trust and credibility with what was then a new market – the "micro" market. To be able to do this, Insurance companies built partnerships with organizations that the mass or micro-markets patronized or were familiar with and trusted and these included microfinance institutions, rural banks, pawnshops, schools, NGOs and other types of retail outlets. Mr. Chan added that a partnership required working together to determine the needs of the target market. He explained that customization was necessary for both products and services such as simplified enrolment and claims processing. “Speedy and proper payment of claims is vital since claims settlement is ultimately the best articulation of the product’s value. While claims settlement sounds simple and straightforward, it is often a source of complaint,” Mr. Chan told AIR. Innovation was also a key in the public's acceptance of microinsurance. According to Mr. Chan, bundling of products at an affordable price and committing to settling claims within five days were the major novelties that made microinsurance sellable. . He added that to facilitate claims processing, the mobile ‘phone became the most convenient and effective tool for conducting interviews and validating claims by video. However, despite the steady progress in covering an increasing number of people, Mr. Chan said there is still a long way to go given the size of the market. He believes that there remains in some parts the negative stereotype of insurance as being expensive, too technical, hard to comprehend, quick to collect but slow to pay claims. And this is something microinsurance should address to sustain its growth. Insurance Commission's data reveals that 50.35 million Filipinos were already covered by microinsurance as of 31 December 2020, an increase of 11.56 % from the previous 12 months. The life and non-life insurance sectors accounted for 29.19% and 13.29% of the total coverage, and microinsurance providers collected a total of PHP7.8 billion ($162.8 million) in premiums.

Courtesy of the ASEAN Insurance Council

Global reinsurance broker, Gallagher Re, has outlined several developments in property reinsurance during the 1 April 2022 renewal period in the Philippine market. In its "1st View" report released last week, Gallagher Re highlighted the following developments: Renewal pricing highly dependent on loss activity, and the impact of Typhoon Rai/Odette on each buyer, dictated terms for renewal Loss impacted layers saw pricing increases anywhere between +20% and +35% Pricing for the higher attaching loss free layers ranged between -2% and +2% Proportional capacity continued to come at a premium with reinsurers lowering Event Limits, reducing commissions and broadening loss participation corridors Excess of Loss capacity remained adequate although levels of over-placement were lower compared to last renewal. No new Proportional capacity came into the market. Source: asiainsurancereview.com

Speaker: Mr. Alvin Arogo - VP and Head Research Division PNB Mr. Miguel Veneracion - Relationship Officer Multinationals Division PNB

INSURANCE claims related to Covid-19 totaled P16.71 billion between 2020 and 2021, with life insurance coverage accounting for more than half of the benefits, or roughly P9.05 billion, the Department of Finance (DoF) said. It said in a statement on Saturday that this was based on the Insurance Commission's (IC) report to Finance Secretary Carlos Dominguez 3rd, which also pointed out that 23 percent of Covid-19-related claims were paid between the beginning of the pandemic in March 2020 and the end of 2020, with the bulk of the claims — 77 percent or P12.82 billion — being claimed last year. IC Commissioner Dennis Funa said in the report that P9.05 billion in claims for life insurance plans translates to nearly 9,500 death payouts. For his part, the DoF said Dominguez noted that compared to data from the Department of Health of roughly 51,000 deaths related to Covid-19 as of the end of last year, less than a fifth, or 18.6 percent, were covered by insurance based on IC data. The low insurance coverage rate for pandemic-related deaths, he added, emphasizes the need of securing financial protection in advance of calamities and other unexpected incidents. Meanwhile, Funa explained that the rest of the pandemic-related insurance claims in 2020 and 2021 came from health maintenance organizations (HMOs), which accounted for 39 percent of the payouts or P6.44 billion, mutual benefit associations (MBAs), which accounted for 5 percent of the payouts or P833 million, and non-life policies, which accounted for 2 percent or P382 million. "Notably, the out-patient benefit, meaning people who were not confined in the hospital, have the highest number of claims paid with 413,000 for the whole of 2021. Followed by claims under other benefits at 54,000," he was quoted as saying in the report. Death benefits accounted for P6.8 billion, or 53 percent, of the total payout last year, Funa added, followed by in-patient benefits, or those confined in hospitals, at 27 percent, or P3.5 billion. Out-patient benefits amounted for 15 percent of claims in 2021, or P1.92 billion. "It is noteworthy that within 2021, all four industries have already exceeded at 35 percent of their claims payment for the entire 2020," the IC head continued. Source: manilatimes.net

By Herminia S. Jacinto THIS article is inspired by the celebration of Women's Month this year and a column in this paper last week, titled "Why people are buying insurance during the pandemic." Allow me, dear reader, to pay tribute to the women who make insurance available to the clients (sellers of insurance products) and their women clients, the buyers. The pandemic is one time when people took a good look at their existing resources, which will support them just in case the inevitable happens. In the traditional Filipino family, the mother is usually responsible for the running of the household and providing for the day-to-day needs of the family. She decides what insurance protection her family will need. I recall one insurance agent told me that she spent days explaining to a businessman the value of getting adequate insurance protection on his life, but she could not get him to sign up. She almost gave up. But one fine day, the wife joined them in the meeting, and after listening to my friend about the benefits of insurance, the wife immediately said, "Go. We are signing up!" I am fully convinced that women make the best decisions in the family. Let us look at the Philippine insurance industry, which used to be dominated by men. Over time, women have become a formidable force in the insurance business occupying significant positions in their respective companies. The agency force in the life insurance business is a woman's world. Try attending an agency conference or other event of the agents and one can see that the top sellers are the women agents or financial advisors. Cheers to the superb convincing powers of these ladies! These women agents continue to reinvent themselves. They use state-of-the art gadgets in their selling activities. They are up to date with the latest developments in the country, investments, the stock market and fashion, of course. Most, if not all, of our qualifiers to the prestigious MDRT (Million Dollar Round Table) conferences in the United States are women. Allow me to pay tribute to some women leaders in the industry. First is none other than former Insurance commissioner Gregoria Cruz-Arnaldo, who was appointed by former president Ferdinand Marcos to head the Insurance Commission from 1970. It was during her tenure as Insurance commissioner that Presidential Decree 612, otherwise known as the insurance Code of the Philippines, was issued and implemented. Commissioner Cruz-Arnaldo organized and headed several organizations in Asean and Latin American and African countries. She founded the Association of Insurers and Reinsurers in Developing Countries, composed of companies from various countries, including the United States, Africa, Latin America, Europe and Asia, of course. The secretariat is based in the Philippines. Two other ladies, Adelita Vergel de Dios and Evangeline Escobillo, became Insurance commissioners at different periods after Mrs. Cruz-Arnaldo retired in 1985. In the private sector, the life insurance industry credits Ms. Esther Tan, former president of the Sun Life of Canada (Philippines) with building a huge number of life insurance agents, mostly ladies. Their agency force continues to be one of the best in the country. Insular Life Assurance Co. — the only mutual life company in the country — is now headed by Ms. Nina Aguas, chief executive officer (CEO) and executive chairman, its first lady CEO. There are many women executives in the life insurance companies, which shows that the women are the "nurturers" not only at home but also in their companies. The non-life insurance companies have been managed and led by ladies at one time or another. The chairman of the largest non-life insurance company, the Malayan Insurance Co., is Ms. Helen Dee. She chairs other companies in the Yuchengco Group but it was Malayan which first benefited from her leadership and expertise. She led the country in seeking support from global reinsurers for the reforms being instituted by the industry after suffering from heavy losses in the 1980s. Without reinsurance support, the industry cannot cover large risks and catastrophic events. Her sister, Yvonne Yuchengco, succeeded her as president but is now the vice chairman of the company. There are more empowered women in insurance but due to space constraints, I will write about them another time. Source: manilatimes.net

The Philippine Insurers and Reinsurers Association (PIRA), in partnership with IPV Network and the Insurance Institute for Asia and the Pacific (IIAP), will be conducting a two-day free webinar on Cyber Security and the Insurance Industry on February 4 and 5, 2021, via Zoom meeting application. Entitled "Closing The Gap Cybersecurity and the Insurance Industry" this very important webinar will have inputs from foreign experts on very timely topics such as evaluating cyber risks, cyber security governance and compliance, cyber security incident response and recovery, and targeted threat intelligence. Mr. Ramon Dimacali, a former Chairman of PIRA and former President of IBM Philippines, IIAP, and FPG Insurance, will be the Keynote Speaker in the event. Mr. Michael Rellosa, PIRA Executive Director, and Mr. Francis Papa, IIAP Executive Director, and Ms. Ma. Divina T. Tablante, IIAP Education Director, will serve as Moderators. There will be four speakers for February 4. Mr. Itay Yanovski of CyberInt will present the Changing Cyber Threat Landscape. Mr. Ivan Jude Busgano of IPV Network will talk about Cybersecurity Governance and Compliance. Mr. Nir Greenberg of Illusive Networks will focus on Evaluating Risks and Implementing Controls. And, finally, Mr. Jonathan Nativ of Silverfort will speak about Keeping a Close Eye on Your Crown Jewels. For February 5, Mr. Alex Peleg of Cilynx/Cynergy, will present something about Cybersecurity Incident Response and Recovery, while Mr. Itay Yanovski will again speak, this time about Targeted Threat Intelligence. PIRA is inviting all Presidents and CEOs of insurance companies, including the Chief Technology Officers, Chief Finance Officers, Data Privacy Officers and Chief Compliance officers to attend this free webinar. PIRA Executive Director Mr. Michael Rellosa said that as all insurance companies accelerate their adoption of digital technologies to adapt to the challenges posed by the Covid-19 pandemic, their exposure to cyber threats increases dramatically. "This webinar aims to enlighten the leaders and decision-makers of all insurance companies on the realities of cyber security and to arm them with necessary knowledge and tools to protect their companies from cyber threats," Mr. Rellosa said. There is still no available data related to the extent of cyber crimes involving insurance companies in the Philippines. However, a recent Bangko Sentral ng Pilipinas (BSP) survey showed that banks have experienced cyber security attacks during the first nine months of the pandemic. These attacks ranged from disruption of the banks' system, stealing money and Internet Protocol addresses, hacking, malware, fraud, phishing and insider attacks. Three fourths of the surveyed banks said financial losses are the most worrisome impact of cybercrime events, followed by breaches on customer data and reputational risk. Those interested to attend the free webinar may register through the PIRA Secretariat before February 1, 2021.

AM Best believes that Putin's invasion of Ukraine is likely to impact the global insurance industry substantially in the near to midterm, particularly given the significant fallout in the capital markets and potential for widespread cyber attacks. The AM Best commentary, ‘Significant Implications of Ukraine Invasion on Global Insurance Industry’ said that the invasion has had an immediate negative impact on the stock markets worldwide, continued volatility remains likely, challenging efforts by the global central banks and the US Federal Reserve to contain inflation. It said the sanctions against Russia may also have severe knock-on effects not just on oil and commodity prices, but also tourism, as well as the economies of some of the world’s less resilient countries. AM Best financial analyst Anna Sheremeteva said, “Further sanctions may impact the ability of international insurers and reinsurers to underwrite Russian risks or make it more difficult for them to service claims on existing policies. She said, “Most affected would be those writing large energy and infrastructure risks, such as London Market insurers, and international reinsurers.” AM Best financial analyst Todor Kitin said, “Sanctions also will affect the balance sheets of Russian insurers and their relationships with international partners.” “The valuation of investments would be affected by a prolonged equity market downturn, any increase in the Russian Central Bank’s policy rate, or a widening of credit spreads. On the other side of the balance sheet, higher-than-anticipated inflation would impact claims costs, with potential implications for the adequacy of reserves.” Additionally, the impact of an escalating global conflict may increase the risk of a systemic cyber attack and cause substantial economic and insured losses. Heightened risk perception could lead to higher prices in an already hardening cyber market. Source: asiainsurancereview.com

LEADING medical and travel insurance provider Pacific Cross introduces FlexiShield, a second layer plan, designed to meet clients' needs in case their health maintenance organization (HMO) or health insurance plan reaches its maximum benefit limit. "An illness in the family has an impact both on an individual's health and their finances. Some medical conditions, especially those that require confinement, can become quite costly to treat," shares Victor Tanjuakio, president and chief executive officer of Pacific Cross. "We hope to help ease some of the worries that come with situations like these with FlexiShield." FlexiShield is a top-up coverage that fully complements existing HMO plans. As such, its premium is more affordable, compared to standalone medical plans. It extends the inpatient coverage upon exhaustion of the existing and active first layer HMO plan's maximum benefit limit. Members of corporate accounts, individuals, and families that are already covered by an HMO plan can avail of FlexiShield. Benefits include up to P2 million coverage, daily hospital income for non-hospital expenses, flexible availment options (no cash-out or reimbursement), and coverage for Covid-19. Inpatient charges, such as required diagnostic laboratory tests; prescribed medicines; anesthesia and surgical appliances; and intravenous chemotherapy, radiotherapy, and dialysis are also part of the plan's benefits as covered by the first layer HMO plan. Hospital expenses incurred after the first layer HMO plan's maximum benefit limit has been exhausted will be covered. "We hope that with the benefits that FlexiShield offers, we are able to give clients the peace of mind they need [in order that] they can focus on getting better," concludes Tanjuakio. For more information on FlexiShield, visit www.pacificcross.com.ph. Source: manilatimes.net