MICROCAPITAL BRIEF: Manulife Financial Introduces Life Microinsurance Product for Philippines, Plans to Expand Sales in Vietnam

Consistent with its plans reported by MicroCapital in March, Manulife Philippines, a subsidiary of Canada-based Manulife Financial, has launched a microinsurance product that provides life and accident protection to low-income Filipinos. Monthly premiums for the new product, named FirstProtect, start at PHP 471 (approximately USD 10.50) with a term of ten years and a payout in case of death during the term. However, if the death is the result of an accident, the policy pays 300 percent of the standard coverage amount. FirstProtect policyholders receive a maturity benefit if they survive the policy period, whereby Manulife will return 25 percent of the premiums collected [1].

Manulife is also launching a related insurance product, FirstProtect Plus, which offers a periodic dividend that can be claimed in cash, used to reduce premiums or saved with Manulife in the form of interest-bearing deposits. If FirstProtect Plus holders survive the entire policy period, Manulife will return 50 percent of the premiums collected [1].

Manulife is also pushing its microinsurance products elsewhere in Southeast Asia. The expansion into the Philippines follows the sale of 80,000 policies since 2009 in nine provinces of Vietnam. Manulife Vietnam CEO Carl Gustini reports a goal of selling at least 50,000 more policies in twelve new provinces in the coming year. In an interview with Bloomberg News, Mr Gustini also mentioned plans to eventually introduce family insurance products and possibly mutual funds in Vietnam, an experiment that may be replicated in the Philippines in the future [2].

By Rohan Trivedi, Research Associate

About Manulife Financial:
Manulife Financial is a Canadian financial services company with operations in 22 countries and territories. Manulife’s products and services include individual and group life insurance, group health insurance, pension products, annuities, mutual funds, banking products and asset management services for 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. As of March 31, 2011, Manulife Financial reported total assets of CAD 424 billion (USD 436 billion).

Sources and Additional Resources:

[1] Bloomberg: “Manulife Plans to Boost Insurance Sales to Poor in Vietnam”, http://www.bloomberg.com/news/2011-05-19/manulife-plans-to-boost-insurance-sales-to-poor-in-vietnam-in-expansion.html

[2] BusinessWorld Online: “Manulife launches first microinsurance product”, http://www.bworldonline.com/content.php?section=Finance&title=Manulife-launches-first-microinsurance-product&id=30933

MicroCapital.org story, March 1, 2011: “MICROCAPITAL BRIEF: Manulife Philippines to Offer Microinsurance Products to Low-Income Filipino Households”, https://www.microcapital.org/microcapital-brief-manulife-philippines-to-offer-microinsurance-products-to-low-income-filipino-households/

MicroCapital Universe Profile: 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/

Similar Posts: