Market Research Logo

Microinsurance Market in the Philippines 2016-2020

Microinsurance Market in the Philippines 2016-2020

About Micro-Insurance Products

Micro-insurance products are coverage policies targeted at households with low income levels. Micro-insurance plans provide tailored insurance coverage policies for individuals with little or low saving plans. Such policies provide lower value assets and compensation for injury, illness, or death to an individual than in other insurance policies. Micro-insurance companies assist poor families by offering customized insurance plans to meet the specific needs of the customers. The value of the coverage policy is lower compared to other insurance plans because of which the policyholder pays smaller premiums to the insurance company than in the case of a usual plan. The micro-insurance market is stronger in developing countries which offer high growth opportunities for the insurance industry.

Technavio’s analysts forecast the micro-insurance market in the Philippines to grow at a CAGR of 21.47% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the micro-insurance market in the Philippines for 2016-2020. To calculate the market size, the report considered the premiums earned from accidental micro-insurance, life micro-insurance, health micro-insurance, agriculture micro-insurance, and property micro-insurance from the Philippines market.Technavio's report, Micro-Insurance Market in the Philippines 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors

  • AIG Philippines
  • Asian Life and General Assurance
  • CARD Pioneer
  • CLIMBS Life
Other prominent vendors
  • AFP General lnsurance
  • PNB MetLife
  • xMicroEnsure
Market driver
  • Encouraging regulatory environment
  • For a full, detailed list, view our report
Market challenge
  • Lack of trained staff to explain insurance products to the poor
  • For a full, detailed list, view our report
Market trend
  • Increase in financial inclusion programs
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Micro-Insurance Market in the Philippines 2016-2020

Technavio recognizes the following companies as the key players in the micro-insurance market in the Philippines: AIG Philippines, Asian Life and General Assurance, CARD Pioneer, and CLIMBS Life.

Other Prominent Vendors in the market are: AFP General lnsurance, PNB MetLife, and xMicroEnsure.

Commenting on the report, an analyst from Technavio’s team said: “Increase in financial inclusion programs will be a key trend for market growth. It is important to focus on the financially inclusive ecosystems especially for low-income clients, including small and medium enterprises. The financial inclusion empowers the poor to manage their finances and reduce their vulnerability to financial distress, debt, and poverty. The majority of populations in the Philippines do not have access to insurance with a bank or any other formal institution. The government in the Philippines focuses more on financial inclusion policies as it is considered an important strategy for growth of the micro-insurance market. The financial inclusion in micro-insurance is given to low-income clients who are excluded from the traditional commercial insurance schemes because they come from the informal sector, have irregular cash flows, or have seasonal fluctuations in earning capacity.”

According to the report, different valuation strategies will be a key driver for market growth. Micro-insurance is subject to normal industry cyclicals. Market players therefore formulate different strategies to earn positive yields and generate cash flows. These techniques help to bring in stable earnings year-on-year for players in the micro-insurance industry. While micro-insurance players remain subject to business cyclicals, the growth resulting from changes in premiums may not affect much of the relative growth prospects of the industry players. However, it is important to note that a micro-insurance company’s underwriting activities do cast an effect on the valuation of the insurer. This applies to instances when the insurance company hikes the rate of premium.

Further, the report states that if we look at the current market scenario, there has been low penetration of micro-insurance as there is a lack of insurance culture amongst the population. So, to increase market penetration, the government and top players in the market should tap the low-income market segment. The lack of general awareness about micro-insurance as a protection tool and details about the types of insurances pose major challenges to market growth. This lack of awareness often keeps potential clients away. Micro-insurance service providers offer services at a slow pace. The claim settlement process is a vital component in the whole process flow as it is crucial for the goodwill of the micro-insurance company.

Companies Mentioned

AIG Philippines, Asian Life and General Assurance, CARD Pioneer, CLIMBS Life, AFP General lnsurance, PNB MetLife, xMicroEnsure.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
      • Table Products offered by micro-insurance providers
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Definition of micro-insurance
    • Key players in micro-insurance value chain
      • Table Key players in micro-insurance value chain
    • Micro-insurance transaction
      • Table Life cycle of micro-insurance
    • Role of policy and regulation in shaping business environment of micro-insurance sector
      • Table Role of policy and regulation in shaping business environment of micro-insurance sector
    • Difference between traditional insurance and micro-insurance
      • Table Difference between traditional insurance and micro-insurance
  • Market landscape
    • Market overview
      • Table Products offered by micro-insurance providers
      • Table Concept of life insurance based on two fundamental principles
      • Table Personal uses of life insurance business
      • Table Types of life insurance
      • Table Primary reasons for investing in life insurance
      • Table Types of property insurance
      • Table Damages and losses covered under property insurance
    • Market size and forecast
      • Table Global micro-insurance market in Philippines 2015-2020 ($ millions)
      • Table Premium generated and forecasted from different micro-insurance products 2015-2020
      • Table Market share of micro-insurance products in Philippines 2015 and 2020
      • Table Reasons for upgrading capital management
      • Table Strategies to manage significant risks for low-income people
    • Five forces analysis
      • Table Five forces analysis
  • Market drivers
    • Encouraging regulatory environment
    • Impact of growing urbanization on markets pertaining to life micro-insurance, health micro-insurance, and various kinds of agricultural insurance
      • Table Whole life insurance policy features
    • Different valuation strategies
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Decapitalization due to high insurance claims
    • Lack of trained staff to explain insurance products to the poor
    • Difficulty in credit assessment
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Increase in financial inclusion programs
    • Micro-insurance becoming mandatory
      • Table Benefits of mandatory coverage
    • Leveraging social media channels for better market penetration and better customer connectivity
      • Table Social media benefits to insurance firms
      • Table Innovations in customer services
      • Table Factors that drive customer satisfaction
      • Table Customer connectivity
  • Vendor landscape
    • Competitive landscape
    • Other prominent vendors
      • Table Other prominent vendors
  • Key vendor analysis
    • AIG Philippines
      • Table AIG Philippines: Key takeaways
    • Asian Life and General Assurance
      • Table Recent developments
      • Table Asian Life and General Assurance: Key takeaways
    • CARD Pioneer
      • Table CARD Pioneer: Service portfolio
      • Table Recent developments
      • Table CARD Pioneer: Key takeaways
    • CLIMBS Life
      • Table CLIMBS Life: Product and service portfolio
      • Table Recent developments
      • Table CLIMBS Life: Key takeaways
  • Appendix
    • List of abbreviations
  • Explore Technavio

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report