Butuan Training Seminar - August 11-12, 2017
Friday, September 1, 2017
The current situation of micro insurance distribution in the Philippines is primarily through micro finance institutions and pawnshops. The access to micro insurance is focused in urban areas while the rural areas remain underserved due to high distribution costs. This creates unhealthy pooled risks. In addition, there is a lack of understanding on the value of micro insurance, its benefits and obligations.
In January 2017, the German Development Cooperation (GIZ, an international development agency) and PruLife UK (a commercial insurance company) signed a contract to implement the MicroComm Project. Under the contract of PruLife, it brought CommLinked company to develop and manage the technological platform for MicroComm.
The intention of the project is to build online communities of people with similar profiles and interests. The online communities will provide content related to the interests of the groups and serve as platforms of discussion for local issues and concerns. These groups will provide access to financial literacy instruments and include links to insurance providers.
The aim of online communities is to reduce the distribution costs, widen financial literacy on microinsurance, and provide links to microinsurance products for new market segments.