Microensurer Cebuana Lhuillier Insurance Solutions (CLIS) joined Business Call to Action (BCtA) in August 2017 with a commitment to increase the number of Filipinos covered by microinsurance from 6 million in 2016 to 8 million in 2020, expanding insurance coverage to 60 percent of the country’s population.

Located in the Pacific ‘Ring of Fire’, the Philippines is vulnerable to catastrophic events such as strong earthquakes, volcanic eruptions and more than 20 typhoons each year. Flash floods, landslides and road accidents both result from and contribute to these risks. With 21.6 percent of the population living in poverty – many in remote areas – the rate of insurance penetration remains low and the risks inherent in the country make most insurance products extremely expensive.

The country’s historic low level of coverage is a result of a lack of financial intermediaries in many parts of the country and a lack of insurance awareness. But as inclusive businesses such as CLIS step into this underserved market, the microinsurance sector is growing significantly along with consumers’ awareness and the availability of affordable products.
 
With established brand recognition thanks to CLIS’ nationwide network of shops, the company enables its partner insurers to avoid risk concentration – by spreading the risk nationwide CLIS cushions the impact of large-scale claims in any specific area. Its Claims RAPIDO service enables customers to receive immediate payouts – for example, in fire-stricken areas while the fire is still ongoing.

In designing its products, CLIS conducts extensive market research and focus group discussions to generate consumer insights. This enables it to craft products that meet Filipinos’ unique needs while keeping prices affordable. The result is bundled products such as the customized CARE line, which includes: PamilyaCARE (personal accident, medical, burial and fire insurance for families); TODACARE (group personal accident insurance for tricycle, jeepney and motorcycle drivers); and PassengerCARE (personal accident insurance for regular bus passengers).
 
By far, the company’s most successful product has been ACP Gold, a personal accident and life insurance package available to anyone between the ages of 7 and 70 that includes free tele-health consultations. Sold over the counter in CLIS’ shops, policies can also be purchased via mobile hubs in remote areas, through CLIS employees located within communities and online.

As a manifestation of CLIS' commitment in achieving inclusive insurance, it has spearheaded various initiatives to address three major areas crucial in increasing the level of insurance understanding and appreciation of Filipinos: microinsurance literacy (awareness), microinsurance service enhancement and disaster resiliency through microinsurance. In 2013, CLIS launched Microinsurance on Wheels where eight roving vans were deployed nationwide to promote awareness and increase access to the company's microinsurance products. Through the Barangay Cebuana, CLIS was able to reach 681 transport associations and barangays in the country. An innovative approach to promote awareness was also adopted with the creation of Micropinoy App, an IOS and android-based interactive app showcasing various insurance products offered by the company.

The CLIS inclusive business model has been so successful that many insurers are prioritizing it as an agent for their services. This is quite an accomplishment in a market that insurers previously avoided. And thanks to an aggressive marketing campaign, the company has been able to scale up its microinsurance business throughout the Philippine islands.