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Market research analysts at Technavio have predicted that the microinsurance market in the Philippines will grow steadily during the next four years and will post a CAGR of more than 21% by 2020. Microinsurance companies constantly formulate different strategies to earn positive yields and to increase their cash flows. This market research analysis estimates the formulation of new strategies to be one of the major factors that will have a positive impact on the growth of the market. The market is subject to normal industry cyclicals and requires insurance providers to follow techniques that help bring in stable earnings. Also, a microinsurance company’s underwriting activities have an effect on the valuation of the insurer. For instance, an insurance company with 9% as the written premium base will outperform other insurance companies when the industry has an annual growth rate of 5%. This will encourage equity markets to allot higher valuation to the particular insurance firm. There are several insurance agents and insurance brokers who execute valuations for private equity-backed buyers and local agencies. This helps microinsurance companies and customers to attain a transparent picture of the legal structure in the region, and, in turn, helps insurance firms to formulate different strategies for buyers.
Due to the focus on increasing their market penetration and enhancing customer connectivity, microinsurance companies will start leveraging social media channels. Social media platforms help market players broaden their communication and marketing channels required for launching new products and services and also assist in collecting customer feedback, resolving queries in real-time, and in updating customers on new product releases. Moreover, social media channels also help companies overcome geographical limitations and acts as an effective channel to attract different customer segments.
The country is currently witnessing changes in its economy due to factors such as political changes and economic integration. This coupled with technological advancements has resulted in the competitive environment among microinsurance companies to be intense. The boost in the region’s GDP and a subsequent rise in the demand for microinsurance products has also led to the entry of several new players in the market. Major insurance providers have already established their presence in the market and with the aim to increase their revenues, have started shifting their focus from advanced markets to emerging markets. Moreover, since policy changes in different geographies will compel insurance companies to compete with various international competitors, most microinsurance companies will start providing products and services at a comparatively lower price. Vendors are also expected to focus on innovative products and also on increasing their investments across different segments.
The leading vendors in the market are -
The other prominent vendors in the market are AFP General lnsurance Corporation, PNB MetLife, and MicroEnsure.
With the availability of a number of micro-insurance products that combine both mandatory and voluntary coverage policies, mandatory coverage has become mandatory in the micro-insurance industry. The focus on increasing the adoption of micro-insurance products has compelled countries such as the Philippines to introduce certain regulations that require insurance providers to use simple terminologies in their coverage plans and has also led to the introduction of less-stringent licensing requirements for microinsurance companies.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the microinsurance market in the Philippines. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market drivers
PART 07: Impact of drivers
PART 08: Market challenges
PART 09: Impact of drivers and challenges
PART 10: Market trends
PART 11: Vendor landscape
PART 12: Key vendor analysis
PART 13: Appendix
PART 14: Explore Technavio
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