Options for Microinsurance Sales and Servicing

MABS Microinsurance Coordinator, Ruth Aseron shares lessons learned during the RBAP-MABS Regional Roundtable Conference 2010.

The RBAP-MABS Regional Roundtable Conferences in Manila and Davao each featured a session on Microinsurance that sought to provide participants insights on the various distribution models which rural banks are allowed to adopt.  Presented were perspectives on how rural banks should formalize its microinsurance distribution operations in compliance with the provisions of the National Regulatory Framework and with regulations issued by the Insurance Commission (IC) and the Bangko Sentral ng Pilipinas (BSP). The session focused especially on Section 6 of the Microinsurance National Regulatory Framework, …

Lower taxes on life insurance to boost microinsurance in the Philippines

Clients interested to access microinsurance services may now celebrate another legal development that allows for more affordable life insurance products with the recent signing of Republic Act (RA) 10001, which reduces taxes on life insurance premiums.

Under this new law, the tax rate for total premiums collected has been scaled down to 2% from the previous rate of 5% stated in Section 123 of the National Internal Revenue Code of 1997. The new law also provides for a revised documentary stamp tax scheme.

“It is expected that life insurance companies will reflect such reductions in the premiums … after the …