Breaking Barriers: How Microinsurance is the key to building ‘sustainable, resilient communities’

CAGAYAN DE ORO—From natural hazards to freak accidents, the unpredictability of life’s immense challenges can pose a huge financial trap in impoverished communities and marginalized sectors. As the Philippines’ faces increasing risks from climate change, health crises, and other livelihood-threatening hazards, microinsurance has been an emerging trend in the financial landscape since 2015.

As the new year rolls in, according to the Presidential Proclamation 1212 declaring January 2007 and every year hereafter as the “National Microinsurance Month” in the Philippines. CLIMBS Life and General Insurance Cooperative, as a leading life and non-life microinsurer since 1971, celebrates this month as an opportunity to reach the grassroots level and help underprivileged communities gain access to insurance products and services.

Understanding microinsurance and its role in financial inclusivity

Microinsurance is often found in developing countries, tailored to meet the unique needs of low-income communities and small-scale businesses. Using a community-centered lens, microinsurance has enabled insurers to provide a formidable coverage plan that allows individuals to pay smaller premiums. In addition to offering climate insurance, CLIMBS strives to serve as a cornerstone for the community—acting as a beacon of guidance and promoting financial inclusion for individuals from all walks of life.

Ensuring the overall health and well-being of its members, CLIMBS continues to offer its microinsurance products to its members using CoopAssurance Centers (CACs) as distribution channels for every member of the family. From life to non-life products, CACs have proven to be an instrumental tool for assessing individual needs and identifying the best services tailored to their preferences, lifestyle, and income.

National Microinsurance Month

This month highlights the importance of putting financial literacy into practice, reminding us that financial hardships can be avoided by taking proactive steps and managing finances wisely. Investing in insurance and microinsurance products has never been easier, with options available at the click of a button—just like adding items to your cart and completing payments through digital transfers.

Microinsurance offers individuals an accessible and straightforward way to secure the benefits of long-term investments. This innovative approach allows people to prepare for unexpected challenges, providing a financial safety net during times of crisis. It empowers people to face the future with confidence, knowing they have an extra layer of protection that safeguards their needs.