Cebuana Lhuillier and Pioneer Insurance, two of the country’s leaders in microinsurance, have forged a partnership in a bid to continue expanding the number of Filipinos covered by insurance.
from left to right: Geric G. Laude – FVP, Microinsurance Head, Pioneer Group, Lorenzo O. Chan Jr. – President, Retail Organization Head, Pioneer Group, David C. Coyukiat – Pioneer Group Head, Ambassador Philippe Jones Lhuillier – Chairman, Cebuana Lhuiller, Jean Henri D. Lhuillier – President and CEO, Cebuana Lhuillier and Jonathan Batangan – General Manager, Cebuana Lhuillier Insurance Solutions
What is a Microinsurance Program?
Microinsurance Program offers insurance products at a more affordable price targeting the lower C and D socio-economic classes.
Cebuana Lhuillier and Pioneer Insurance Partnership
Last July 24, 2015, Jean Henri Lhuillier, President and Chief Executive Officer of Cebuana Lhuillier, signed a memorandum of agreement with President and Retail Organization Head for Pioneer Insurance, Lorenzo Chan Jr., naming Pioneer as the underwriter of the Alagang Cebuana program.
Alagang Cebuana Program
Alagang Cebuana is a microinsurance program that offers insurance products at a more affordable price.
The two companies aim to cover more Filipinos under the Alagang Cebuana Plus Program, which for P25 will cover an individual up to P20,000 in personal accident coverage and P5,000 fire insurance for a maximum of four months.
“We have full trust and confidence in Pioneer Life Insurance, as it is one, if not the strongest microinsurance providers in the country today. The well-oiled machinery of Pioneer Insurance will be complemented by our 24/7 service outlets,” Lhuillier said. “This partnership will change how microinsurance is done in the country as insurance claims can now be processed anytime of the day, anywhere in the Philippines. And they get their insurance claim in cash.”
“Microinsurance is really about giving Filipinos the resources they need to continue with their lives even when a loss – of property or of a loved one – throws off their finances. Our partnership with Cebuana Lhuillier allows us to bring these benefits to more Filipinos, especially the ones who need it most,” Chan said.
The country’s microinsurance industry has one of the largest potentials for growth. Industry statistics indicate that there is an estimated 80 million Filipinos categorized as the target market of micro insurance.
“But of the 80 million, only 21 million have been tapped,” said Geric Laude, head for microinsurance of Pioneer. “Distribution is thus key to bringing insurance to more Filipinos.”
Since its inception in 2008, the Alagang Cebuana program has grown exponentially from 50,000 policies in a month to as much as 1.7 million for the same period. In 2014 alone, the program issued 16.7 million certificates that cover about 5 million Filipinos.
“The Philippines has one of the highest micro insurance coverages in the world at 21 percent of its population,” said Jonathan Batangan, general manager for Cebuana Lhuillier Insurance Solutions (CLIS). “However, many Filipinos are still deprived of social protection and economic inclusion. The Alagang Cebuana program, which is backed by two industry experts, will bridge that gap.”
Cebuana Lhuillier has enrolled more than 5 million Filipinos through its microinsurance programs and has settled more than P120 million claims in collaboration with insurance partners. Through CLIS, the company has commenced offering sachet insurance as early as 1998, long before the microinsurance sector was formalized in the country.
Pioneer started offering microinsurance policies in 2008 with an initial 28,760 enrollments. By the end of 2014, the company had well over 1.6 million enrollments in its microinsurance programs.