Microinsurance to bringing coverage to more Filipinos

Insurance Commission (IC) Commissioner Reynaldo Regalado is calling for a stronger push toward microinsurance as a way to bring insurance protection closer to millions of Filipinos who remain outside the formal financial system.

Speaking on Friday, Regalado underscored the role of microinsurance in widening access to coverage, noting that the product is specifically designed to meet the risk-protection needs of low-income individuals.

Under Republic Act No. 10607, or the Insurance Code, microinsurance premiums must not exceed 7.5 percent of the daily minimum wage for non-agricultural workers in Metro Manila, while guaranteed benefits are capped at 1,000 times the same daily wage.

Regalado expressed optimism about the overall trajectory of the domestic insurance industry, even as challenges remain. While full-year 2025 figures have yet to be released, data from the Insurance Commission showed that the combined net worth of life and non-life insurance companies, along with mutual benefit associations, reached PHP525.97 billion as of end-September last year.

This marked an 8.49 percent increase from P484.82 billion in the same period in 2024.

At the same time, the number of licensed insurance companies declined to 130 as of the third quarter, down from 137 a year earlier, reflecting ongoing consolidation in the sector.

Despite these gains, insurance penetration remains relatively low. As of end-September, penetration stood at 1.85 percent, an improvement from 1.74 percent the previous year but still short of the Commission’s target. Regalado said reaching the 2 percent mark will require closer coordination with industry stakeholders and a stronger focus on inclusive products.

Microinsurance, he said, already accounts for a significant share of insurance offerings and should be prioritized as a tool for advancing financial inclusion. Discussions are underway with the Cooperative Development Authority to expand access through cooperatives, which Regalado described as an effective entry point into communities.

“This is a good entry to communities,” he said.

To further strengthen outreach, Regalado said the Insurance Commission is expanding its regional presence. Offices in Cebu and Davao will be reinforced, while a new office in Baguio is set to open by the second quarter of the year, a move aimed at bringing regulatory services and insurance education closer to the public.