SINGAPORE — Pioneer Group of Firms sees rising demand for “sachet-style” insurance products as climate-related risks heighten vulnerabilities amongst low-income communities within the Philippines.
“You really need to empower people. You would like them to take responsibility for his or her lives. But they’ll’t if there’s no tools,” Pioneer, Inc. President and Chief Executive Officer Lorenzo O. Chan, Jr. told reporters on the sidelines of the Philanthropy Asia Summit (PAS) on Tuesday.
He said inexpensive microinsurance products have gotten increasingly vital for low-income households exposed to typhoons, flooding, crop losses, and other climate-related disruptions.
“People think if I help the poor, if I insure the poor, there is no such thing as a business case. [But,] there may be business case,” he said.
The Philippines was ranked the world’s most disaster-prone nation for the 21st straight 12 months within the 2025 WorldRiskIndex by Germany’s Bündnis Entwicklung Hilft and Ruhr University Bochum.
“There are enough insurers, there are enough needs. What we’ve is a scarcity of those willing to look beyond the business case to present it a go,” Mr. Chan said.
Pioneer’s microinsurance products are primarily distributed through CARD Pioneer Microinsurance, Inc., its three way partnership with CARD Mutually Reinforcing Institutions (CARD MRI).
Within the Philippines, the Pioneer group includes Pioneer Life, Inc., Pioneer Insurance and Surety Corp., M Pioneer Insurance, Inc. — its three way partnership with Manila Electric Co. (Meralco) — and CARD MRI.
Under Republic Act No. 10607, or the Insurance Code of the Philippines, microinsurance every day premiums cannot exceed 7.5% of the every day minimum wage for a non-agricultural employee in Metro Manila.
Mr. Chan said the corporate plans to expand its microinsurance offerings for farmers and fisherfolk.
Last 12 months, Pioneer partnered with Nestlé Philippines to supply crop insurance for coffee farmers in Sultan Kudarat to assist protect production against climate-related risks.
In 2025, the group recorded 36.7 million enrollments in its microinsurance products and generated greater than P4 billion in premiums.
In line with Insurance Commission data, Pioneer Insurance was the highest nonlife insurer last 12 months when it comes to premium income, with P6.903 billion in net premiums written. — Beatriz Marie D. Cruz