Insurance for all: Closing the protection gap

 

By Jaime Aristotle B. Alip, PhD

Published Jun 8, 2026 12:05 am | Updated Jun 7, 2026 04:03 pm

FROM THE MARGINS

The global movement for financial inclusion has achieved remarkable progress over the past decade. Millions of previously unbanked individuals now have access to savings accounts, digital payments, and other financial services. Yet amid these gains, one critical gap remains stubbornly wide: protection against life's uncertainties.

This reality was at the heart of the “Insurance 4 ALL” Day, a high-level forum on inclusive insurance convened by CGAP and AXA EssentiALL on May 27 at AXA's headquarters in Paris, France. Around 180 participants from across the world gathered to discuss how insurance can reach those who need it most, particularly low-income and vulnerable communities. The event featured prominent global leaders, including Her Majesty Queen Máxima of the Netherlands, the United Nations Secretary-General's Special Advocate for Financial Health, Sophie Sirtaine, CEO of CGAP, and Garance Wattez-Richard, CEO of AXA EssentiALL.

Throughout the day, one issue stood out: an estimated 3.5 billion people worldwide still lack access to insurance protection. While financial inclusion efforts have successfully expanded access to banking and payments, billions remain exposed to risks such as illness, natural disasters, crop failure, loss of livelihood, and death.

I was honored to participate in a panel discussion on "The Emergence and Consolidation of Dedicated Inclusive Insurance Organizations." Our conversation centered on a question that has long guided my work in microfinance and social development: How can we ensure that low-income families are protected from financial shocks that can erase years of hard-earned progress?

For many years, I have advocated that financial inclusion must go beyond access to credit and savings. True financial inclusion must include protection. A family may gradually build assets, strengthen a microenterprise, and improve its quality of life, but a single crisis can quickly reverse these gains. Without adequate protection, financial inclusion remains incomplete.

We discussed this in a recent episode of the Ka-Nayon podcast, which featured Junjay Perez of RIMANSI/Microinsurance MBAs Association of the Philippines and Me-an Ignacio of Kasagana-Ka Credit and Savings Cooperative. Both shared how microinsurance has become an important pillar of resilience among low-income Filipinos. Their experiences highlighted that insurance is more than a financial product – it is a practical tool that helps families recover from setbacks, preserve their livelihoods, and avoid falling deeper into poverty.

One of the key themes discussed in Paris was the importance of building trust at the last mile. Traditional insurance models often struggle to reach low-income communities because of high distribution costs, small premiums, and limited physical access. As a result, many marginalized households remain outside formal protection systems.

Dedicated inclusive insurance organizations have emerged to address this challenge. Across many countries, insurance is increasingly being delivered through community-based mechanisms such as cooperatives, microinsurance mutual benefit associations (MBAs), microfinance institutions, and even postal networks. These organizations possess something that large institutions often lack: close relationships with the communities they serve. Their local presence enables them to educate clients, simplify products, and build the trust necessary for insurance to take root.

The Philippine experience demonstrates the potential of this approach. Through strong partnerships among microfinance institutions, cooperatives, and mutual benefit associations, millions of Filipinos have gained access to affordable insurance products tailored to their needs. These efforts have shown that inclusive insurance can achieve both scale and meaningful impact when delivered through institutions that understand the realities of low-income households.

The forum also highlighted the growing role of technology in closing the protection gap. Artificial intelligence, digital platforms, and InsurTech solutions are helping insurers improve efficiency, reduce costs, strengthen fraud detection, and simplify claims processing. These innovations can make insurance more accessible and affordable, particularly for underserved populations that have traditionally been difficult to reach.

Technology alone, however, is not enough. The success of inclusive insurance depends on combining digital innovation with trusted local institutions that understand the needs and circumstances of the people they serve. Human relationships remain at the heart of financial protection.

Another recurring theme throughout the discussions was climate resilience. Around the world, low-income communities are increasingly vulnerable to climate-related shocks, from severe storms and floods to prolonged droughts and crop losses. For countries such as the Philippines, where natural disasters are a recurring reality, insurance plays an increasingly important role in helping families and communities recover and rebuild.

The message from the Insurance 4 ALL Forum was clear: closing the global protection gap will require collaboration among regulators, insurers, technology providers, development organizations, and community-based institutions. More importantly, it will require a shared commitment to ensuring that financial health includes not only opportunities to build wealth, but also mechanisms to protect it.

Insurance for all is more than an industry aspiration. It is an essential component of financial inclusion, economic resilience, and human dignity. If we are serious about creating a world where no one is left behind, then ensuring access to meaningful financial protection must become a global priority.

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“Life is unpredictable; insurance makes it manageable.” — Unknown

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to 8 million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)

Bridges to better lives

 

By Jaime Aristotle B. Alip, PhD

Published Jun 30, 2025 12:05 am

FROM THE MARGINS

As graduation season sweeps across the country, thousands of young Filipinos are stepping off the stage and into a world filled with hope, uncertainty, and possibility. Some are chasing dreams in the cities. Others are weighing offers or waiting for doors to open. But for those seeking not just a job — but a purpose — there is a quiet but powerful path worth considering: the world of inclusive finance.

Across the Philippines, ordinary individuals are doing extraordinary work — connecting with rural communities, helping families rise from poverty, and empowering women to build livelihoods. They are microfinance workers — people like Sheila, Khristian, Ricson, and Jaya, whose journeys remind us of everyone’s potential to change people’s lives.

A leap of faith

At 33, Sheila Mae Jolero of Bacolod City never imagined she’d find purpose in her job. After bouncing between short-term cashier jobs, she was invited by her cousin to apply at Negros Women for Tomorrow Foundation (NWTF), where she began her journey as a loan officer in 2012.

From riding horses to reach far-flung areas, to conducting meetings in dialects she barely understood, Sheila embraced the unfamiliar. What inspired her most were the clients themselves: women in remote areas who never missed a payment, despite life’s challenges. “They’re more responsible, more committed—even if they live at the edge of the mountains,” she shares.

Thirteen years later, Sheila has not only built a stable career, but also her own small business. “I’m so blessed,” she says. “This job gave me the chance to help others and grow myself.”

Coming home to serve

After working in Laguna for years, Khristian Lajo longed for home and returned to La Carlota, Negros Occidental. In 2016, he became a Loan Officer at NWTF, driven by the idea of serving his own community.

The job wasn’t easy. One of his earliest challenges was dealing with a client who fled with a loan. “The threats scared me,” he admits. “But I chose to stay.”

Khristian patiently explained the program to skeptical families and stood firm through difficult days. What made it worth it were clients who treated him like family. “Some of them were like mothers to me,” says Khristian, who lost his own. “When I help them, it brings joy to my heart. This job gives me a new chance to lift someone up.”

Braving the waters

In Bantayan Island, Cebu, Ricson Sombreno’s work with CARD for over a decade has taken him across seas—literally. He takes pump boats to other islands, sometimes through stormy weather and towering waves, just to reach members. “There are days when the waves are bigger than the boat,” he recalls. “It’s scary, but we go, because someone is waiting.”

Despite accidents, exhaustion, and separation from family, Ricson stays grounded. He tailors loans carefully, encourages struggling clients, and offers counsel when needed. For him, it’s not just about numbers—it’s about restoring dignity.

“To work here, you need humility, sacrifice, and prayer,” Ricson says. “We’re instruments of change. If we don’t go to them, who will?”

From client’s daughter to leader

At just 18 years old, Jaya Dela Cruz began her career with ASHI, a microfinance institution where her mother was a member. Starting as a Development Officer, she worked tirelessly—walking through floods and late nights—to ensure payments were collected and that the mothers she served understood the value of their membership.

Now an Accounts Officer managing three Development Officers, Jaya balances paperwork and fieldwork. She validates member applications and trains new aspirants to uphold the institution’s mission.

“I’m a product of ASHI,” she says. “I came from hardship, and seeing others like me improve keeps my passion alive. This isn’t just a job—it’s a calling. We really care for our clients, who are mostly mothers.”

Jaya’s dedication was recognized when she received an award as Outstanding Accounts Officer. Even now, she pursues leadership skills to better serve her team and community.

Why this work matters

From mountain barangays to coastal islands, microfinance workers do not just deliver loans — they deliver hope. They do not just process applications — they build trust, walk with empathy, and stay long after office hours to help someone believe again in their potential.

Their work shows that inclusive finance is not just about numbers — it’s about dignity, compassion, and hope.

An invitation to new graduates

To the graduates donning caps and gowns this season: consider the road less traveled.

A career in microfinance or financial inclusion may not be glamorous—but it is meaningful. It offers a front-row seat to real impact, a chance to help communities rise, and a deeply fulfilling way to serve the country. Whether in a fishing village, upland farm, or coastal barangay, you can be a bridge to better lives.

If you're looking for work that matters—this is your invitation.

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“Don’t just follow a career, build a life that matters.”

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)

Typhoon after typhoon: How can we cope?

BY JAIME ARISTOTLE B. ALIP, PHD

Nov 18, 2024 09:16 AM 

FROM THE MARGINS

 

An average of 20 typhoons hit the Philippines every year. But climate change is making them stronger, more frequent, and harder to predict.  Just last week, Tropical Storms “Marce” and “Nika” battered Northern Luzon, even as we were bracing for Typhoons “Ofel” and “Pepito.”  These successive typhoons came in the wake of Severe Tropical Storm “Kristine” and Super Typhoon “Leon,” whose back-to-back onslaught in October killed more than a hundred people, displaced millions of individuals, and caused billions-worth of damages to agriculture and infrastructure.  

Year after year, Filipinos face the worsening challenges of disasters and climate change. According to the 2004 World Risk Report, the Philippines has the highest world risk index (WRI) out of 193 countries. We have held this record for the last three years — a grim reality that highlights the country’s exposure to natural hazards (we are located in the Typhoon Belt and along the Pacific Ring of Fire) and the challenges of preparing for disasters and rebuilding communities in the aftermath.

 

Joining hands
 

We must join hands to prepare for climate change. The government needs to recalibrate our disaster risk reduction programs, strengthen the capacities of local government units (LGUs), and involve communities in disaster preparedness.  Apart from constructing multi-purpose buildings that could serve as evacuation centers, we need to invest in climate-proof infrastructures and social safety nets, since it is always the poor and vulnerable population that bears the brunt of natural calamities.  

Public-private sector partnerships must be encouraged to mobilize resources to develop renewable energy, climate-resistant infrastructure, and advanced technologies, like early warning systems and hazard maps that could guide LGUs and citizens to move to safer places before disasters strike. Technology can help us minimize loss of life and property.
All of us should also contribute to sustainability efforts.  Ordinary citizens need to be involved in disaster mitigation and given the means to cope.

 

Microinsurance
 

Disaster risk reduction should involve the community.   Microfinance clients — mostly from the poor and vulnerable sectors — must be trained in disaster preparedness and provided safety nets to facilitate post-disaster recovery.  Government-led relief and rehabilitation programs are good, but reliance on government assistance is not sustainable.  People must be enabled to help themselves. 
Microfinance institutions (MFIs) have played a pivotal role in introducing microinsurance to help provide safety nets to low-income families. Through their partnerships with microinsurance mutual benefit associations (Mi-MBAs) and insurance companies, they offer a broad range of products: disaster insurance, business interruption insurance, property insurance, life and health insurance, agricultural insurance, and others – enabling clients to insure not only their lives and livelihoods, but also their houses and properties. 

Of the many financial innovations that MFIs introduced, I am most proud  of the Philippines’ robust microinsurance industry, which provides risk protection services to millions of poor Filipinos. As global discussions on financial inclusion focus on closing the protection gap and increasing the resilience of vulnerable populations, our home-grown Mi-MBAs serve as a model for other countries to emulate.

 

Covering nanay
 

The importance of grassroots involvement in disaster preparedness and recovery is captured in a book that we launched early this year. “Covering Nanay: the Philippine Microinsurance Journey,” the book tells the story of CARD Pioneer Microinsurance Inc. (CMPI), the country’s first non-life microinsurance company, which is a joint venture between CARD MRI (a microfinance/microinsurance organization) and Pioneer Insurance (a commercial insurance company).  At the heart of this story are the women microfinance clients, the Nanays who serve as pillars of their families and communities.  As microinsurance agents and coordinators, they educate their fellow members and other women in their communities about the importance of microinsurance. They provide support to affected members and ensure the fast processing of claims – factors that propelled CMPI from ground zero to insuring millions of clients from low-income families.

I co-authored this book with Pioneer’s Lorenzo Chan, Jr. and Pia Benitez Yupangco. Our aim is to demonstrate that insurance can be understood, valued, and utilized by millions of Filipinos, especially the most vulnerable.  We wanted to show that we can serve low-income groups, covering a market that traditionalists once doubted.  Today, our sustainable microinsurance business stands as a global reference point for success in the microinsurance sector.  We launched this book at Fully Booked bookstore and during the Microfinance Council of the Philippines’ annual conference.  We also featured them in two recently-held international seminars: the Global Microinsurance Conference in Nepal and the Biennial Conference of the International Cooperative and Mutual Insurance Federation (ICMF) in Buenos Aires. 

Ultimately, “Covering Nanay” is a story of empowerment—showcasing the transformative impact of microinsurance on individuals and communities. It reflects the hope and resilience of millions who, despite the typhoons that battered their lives, have found a way to rise again, fortified by the safety net that microinsurance provides.

 

* * *
“The Earth is a fine place and worth fighting for.” – Ernest Hemingway

 

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)