MANILA - Insurance Commissioner Dennis Funa is optimistic of the impact of the first package of tax reform on the insurance industry since people will have additional disposable income.
Funa said people would have more capacity to buy microinsurance with the implementation of the first package of the Tax Reform for Acceleration and Inclusion, or TRAIN, law this year, which gives workers' first P250,000 annual income a tax free rate.
“If they will have a bigger take-home pay, they will be planning for the future for their families or children and the micro sector is just there waiting for these wage earners,” he said.
Data released by the Insurance Commission Friday showed that mutual benefit associations, where bulk of the entities that sell microinsurance belong, posted an 11.57 percent rise in total assets last year, or P77.47 billion.
MBAs' premiums totaled P8.74 billion in 2017, up 16.89 percent from the previous year's P7.48 billion.
Funa declined to give any numbers for the possible expansion of microinsurance sales this year but cited that, to date, there are around 32 million Filipinos who have microinsurance.
He said the poor are starting to realize the necessity of having insurance and slowly embracing the opportunities to get one for themselves.
This is where microinsurance comes in, he said, “because microinsurance makes insurance coverage more affordable.”
He noted that “it's really difficult for big companies to sell micro because you have to go down to the barrios or municipalities”.*PNA
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