Insurance in Action: Why Protection Means Progress

Earlier this month, insurance professionals stood side by side beneath the Philippine flag as it rose against Manila’s city skyline.

Only 2% of Filipinos are insured. Industry leaders say it’s time to turn protection into a culture, not an afterthought.

The ceremony marked the beginning of Insurance Awareness Month, but the message that echoed through the air carried more weight than ceremony. It was a reminder that protection — real protection — remains out of reach for many Filipinos.

Despite living in one of the world’s most disaster-prone nations, where people are constantly tested by typhoons, floods, and earthquakes, fewer than two percent of Filipinos have any form of insurance.

“Insurance is a way of transferring risk,” explained Michael F. Rellosa, Executive Director of the Philippine Insurers and Reinsurers Association. “For a very small amount, you protect what you’ve worked hard for — your business, your car, your home.”

A Small Price for Peace of Mind

The concept of risk transfer is simple but profound. A property worth twenty million pesos can be insured for as little as twenty to twenty-five thousand a year.

“For a ₱20 million house, your premium may only be ₱23,000,” said Francis D. Papa Jr., Executive Director of the Insurance Institute for Asia and the Pacific. “That’s a small price for peace of mind.”

This idea of affordable protection is especially vital for micro, small, and medium enterprises (MSMEs) that form the backbone of the Philippine economy. History has shown how insurance can determine the speed of recovery after disasters.

“After Typhoon Haiyan, insured business owners were able to reopen in weeks,” recalled Joseph P. Carandang, President of the Philippine Insurers Club. “Others who had none took years to recover.”

Empowering MSMEs Through Risk Management

For entrepreneurs, insurance is not a luxury. It is a survival tool.

Business-friendly packages today allow SMEs to bundle coverage for fire, theft, and liability under one policy — lowering costs and simplifying management. “You can save on costs by identifying your true risks and bundling them into one comprehensive policy,” Rellosa noted.

Parametric insurance — a new model where payouts are triggered by measurable events such as rainfall or wind speed — is helping MSMEs recover faster after disasters. 

Even innovation has found its place in the industry.

Parametric insurance, for instance, uses measurable triggers like rainfall or wind speed to release payouts faster than traditional claims. The simplicity of such systems is transforming how local businesses prepare for typhoons and floods.

From Protection to Progress

Beyond financial recovery, insurance plays an unseen yet powerful role in national growth. By protecting assets and livelihoods, it encourages banks to lend and investors to take calculated risks.

In agriculture, insurers are now working with the Department of Agriculture and the World Bank to develop crop protection programs that make it easier for farmers to access credit.

“If crops are insured, banks are more willing to lend,” said Rellosa. “Insurance doesn’t just protect — it enables growth.”

Crop insurance protects farmers, boosts lending confidence, and strengthens food security — proof that protection fosters progress.

The same can be said of health and education.

From cashless HMO systems to reimbursement-based coverage for freelancers, insurance has evolved to match the modern Filipino lifestyle.

Papa added, “Education is the key to raising awareness. The more we train and certify professionals, the more protected our communities become.”

Insurance in Action

This year’s Insurance Awareness Month carries the theme “Insurance in Action.” It highlights three goals — awareness, progress, and collaboration.

The movement extends beyond the industry’s inner circle. Partnerships with organizations like JCI Manila are helping bring the message to schools, barangays, and workplaces.

“We want Filipinos to see insurance in action — not as a piece of paper, but as a promise of protection,” Carandang said.

Watch the NegoShow episode on Insurance Awareness Month 2025 as industry leaders explain why insurance is key to PH resilience, recovery, and growth. (Source: NegoShow | DWIZ 882 YouTube)

The challenge is no longer about availability but awareness. Insurance is within reach of every Filipino entrepreneur, employee, and family. What it takes now is the willingness to see it not as an expense but as empowerment.

“You can’t stop the typhoon or the earthquake,” Rellosa said. “But you can prepare for its aftermath.”

In that simple truth lies the power of protection — and the confidence that, whatever comes next, Filipinos can stand up again, rebuild, and move forward stronger than before — many thanks to insurance.

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