How the Philippines is redefining insurance for the poor

In recent weeks, a series of typhoons, along with the southwest monsoon, battered the Philippines, leaving a trail of devastation across many regions. Over six million Filipinos were affected, while infrastructure and agricultural losses reached billions.

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For many families, recovery is uncertain. But for one sari-sari store owner in Laguna, a microinsurance payout arrived just three days after the storm. That modest but timely support helped her reopen her store and resume earning a living — a reminder that in times of crisis, even small safety nets can make a big difference.

In a country that experiences more than 20 typhoons a year, this painful reality is not new. But each storm underscores a critical need: access to financial protection for the poor and most vulnerable. One solution is proving effective — mutual micro-insurance.

This was the central theme of a high-level “Peer-to-Peer Exchange for Insurance Regulators” held last July 28-30, jointly organized by the United Nations Development Programme (UNDP) Regional Office in Bangkok and the Philippines’ Insurance Commission. The three-day regional learning exchange brought together regulators and development partners from Bangladesh, Vietnam, and Thailand to learn from our experience in advancing microinsurance through mutuals, particularly the model developed by the Center for Agriculture and Rural Development Mutual Benefit Association (CARD MBA).

Community-led, policy-supported

Unlike conventional insurance, mutual microinsurance is built by and for the community. Members pool resources to cover risks together, often with minimal premiums. This approach is especially suited to low-income, rural populations that are underserved by commercial insurers.

In the Philippines, the mutual model has thrived thanks to supportive regulation and pioneering institutions like RIMANSI/MiMAP (Microinsurance MBAs Association of the Philippines), a network of micro-insurers whose members collectively insure more than 29 million lives.