The number of lives covered by the microinsurance products of mutual benefit associations (MBAs) grew by 1.723m last year to 26.66m, but total premiums earned declined due to the COVID-19 pandemic, the Microinsurance MBA Association of the Philippines (MiMAP) has revealed.
MiMAP’s 18 MBA members increased the sector’s coverage by 7% from the 24.93m insured lives in 2019, MiMAP chairman emeritus Jaime Aristotle B Alip said at a forum last month, according to a report by Business World.
Premiums written, however, declined by 18% to PHP3.94bn ($82m) in 2020 from PHP4.81bn in 2019 because several clients found it more difficult to pay premiums during the pandemic, Mr Alip said.
Claims paid by MiMAP’s MBA members rose by 12% to PHP1.6bn in 2020 from PHP1.43bn in 2019. The average amount of death claims they received per day jumped by 12% to PHP4.38m last year, while the average daily number of payouts rose by 2% year on year to 182.
Data from the Insurance Commission (IC) show the number of lives covered by MBAs with their microinsurance products accounted for 69% of the total market share at end-June 2020, making it the top contributor in microinsurance.
MBAs’ microinsurance premium production accounted for 58.8% of the total premiums recorded in the first half of 2020.
Insurance commissioner Dennis Funa said that the microinsurance sector’s shift to digital and wider adoption of InsurTech will boost microinsurance business.