Microinsurance role in financial protection addressed at APEC Disaster Risk Finance sessions

Thursday, April 30, 2015
Delegates from Asia-Pacific Economic Cooperation (APEC) member economies met for two days in Bacolod City, Philippines to discuss “Disaster Risk Finance – APEC Roadmap for Resilient Economies”. Delegates heard first-hand how microinsurance can protect the working poor against the consequences of natural calamities, such as Typhoon Haiyan or the recent Nepal earthquake.
Philippines Insurance Commissioner Emmanuel F. Dooc declared insurance "the main tool to achieve financial inclusion" and went on to highlight the importance of inclusive growth “where every individual can contribute to the development of a robust and resilient economy that, in turn, provides opportunities for all”.
The Microinsurance Network was pleased to cooperate with APEC on this meeting, which was hosted by the Philippine Government and jointly organised with the Department of Finance, Republic of the Philippines, APEC Business Advisory Council (ABAC) and the Asian Development Bank (ADB). Microinsurance Network Board Chair Michael McCord and Executive Director Véronique Faber contributed to the roadmap, underlining the important role of microinsurance in increasing resilience and fostering inclusive growth
The objective of this meeting was to provide input to the APEC Finance Ministers who are drafting a long-range programme called the “Cebu Action Plan.” It will highlight the importance of providing risk management tools to individuals and Small and Medium size Enterprises (SMEs). Participants made a strong case for inclusion of microinsurance, especially for countries with low-insurance penetration by traditional channels.
The discussions during the meeting concluded that effective sustainable development can only come about from strengthening the economic infrastructure related to risk as laid down in last month’s approved Sendai Framework for Disaster Risk Reduction 2015-2030, and from increasing access to a broad base of financial services, in which insurance plays an essential role in mitigating risks when they do occur.
Read the full press release here
Image: © APEC 2015