This year, the Microinsurance Network, in partnership with the GIZ RFIP Philippines, commissioned a study examining how insurers reacted to the catastrophic typhoon Haiyan, and how microinsurance helped people in the Philippines recover from the disaster. Ahead of the publication of the full study, the Microinsurance Network has released an infographic outlining the key findings. The study will be released in early 2015.
The Philippines is one of the more evolved microinsurance markets, with 19.95 million lives and properties covered and a 20.6% coverage ratio in 2012. Typhoon Haiyan presented an opportunity to gauge how microinsurance performed as a risk management mechanism.
The aftermath of the typhoon proved a testing time for providers and the insurance commission, requiring innovative interim solutions. In response to the typhoon, the commission set up Claims Action Centres in badly affected areas and relaxed documentation requirements to speed up claims processing. At the time of the study, 111,000 microinsurance claims were paid – some USD 12 million – and compensation was split between financing housing repairs and restarting livelihoods. As a consequence of the typhoon, many providers reported a surge in interest in insurance from potential customers. This can only be good news, given the arrival of typhoon Hagupit last week.