Financial Inclusion | May 7, 2024

MAA General Assurance Philippines enlists backers to strengthen microinsurance

Lucy Ngige
Guest Author

Lucy Ngige

The weeks-long heatwave broiling the Philippines (and Southeast Asia broadly) underscores the archipelago’s vulnerability to weather extremes, which disproportionately affect low-income populations.

“Access to affordable insurance services allow small businesses and the poorest to bounce back financially and rebuild their lives after an unexpected loss, fostering resilient and inclusive growth,” said Jean-Marc Arbogast of the International Finance Corp.

IFC was among a coalition of investors that acquired an 85% stake in Philippines-based insurance firm MAA General Assurance Philippines, or MAAGAP. Other investors in the deal include SouthEast Asia specialist Triple P Capital, German development finance institution DEG, Finland’s OP Finnfund Global Impact Fund I and the Belgian Investment Company for Developing Countries. 

The investment, including the IFC’s $10 million, will help MAAGAP offer tailored accident, health and property insurance products for small businesses and low-income households in the Philippines. It will also strengthen the insurer’s digitization processes to expand coverage across its islands while lowering costs. 

Insurance market

The Philippines has secured funding from GIZ and the World Bank for disaster risk insurance, but general insurance adoption in the country remains low. The Asian Development Bank provided a grant to develop microinsurance regulatory frameworks and boost providers’ capacity in the country.

MAAGAP is positioned to thrive with the “promising regulatory environment” and growing demand for insurance, said the Triple P Capital team.