The Finance Department of the Philippines government recently estimated that, if all the recipients of government-led microfinance programs were covered, the premiums could yield around PHP 2.5 billion (USD 54 million) annually. “At PHP 1 (USD .02) per day of premium covering just the risk protection needs of seven million microfinance clients, annual business potential will amount to PHP 2.5 billion (USD 54 million),” said Joselito S. Almario, deputy executive director of the Finance Department’s National Credit Council. “It is just a conservative figure. It is based on just one microinsurance product. It does not include other potential clients such as those in the informal sector and those who are self-employed. It is also based on a daily premium of PHP 1 (USD .02).”

Finance officials said that the potential beneficiaries of the low-priced insurance schemes could be as high as 42 million, based on the assumption that each of the seven million microfinance clients belongs to a family of six.

By Jay Kumar, Research Assistant

Additional Sources:
1.) http://www.gmanews.tv/story/182749/microinsurance-to-yield-p25b-dof-says