Cooperative in the Philippines: Lifting People Out of Poverty

Cooperatives in the Philippines play a significant role in lifting people out of poverty. I can say it from my personal experience. Through the scholarship grant by the Philippine Army Finance Center Producers Integrated Cooperative (PAFCPIC), I was able to finish college and land in a good job. I even had the opportunity to work and migrate in United States to work as a Registered Nurse.

Getting to Know 1Cooperative Insurance System of the Philippines

The 1Cooperative Insurance System of the Philippines (1CISP) is the largest cooperative insurance organization in the country. It is one of the 10 fastest-growing insurance cooperatives in the world, based on the prestigious International Cooperative and Mutual Insurance Federation’s (ICMIF) 2018 rankings.

Published last November 20, ICMIF’s Key Statistics Report surveyed its largest and fastest-growing members across product and regional lines, with 1CISP among the top performers, placing 8th for fastest-growing life insurers, and 17th overall for emerging markets, at a 23.8% premium growth from 2016-2017.

Out of ICMIF’s network comprised of 197 members worldwide, 1CISP is among only a handful of Asia-based members with growth stacking up against the international rankings.

“ICMIF is one of the industry benchmarks we hold ourselves to, as the only global representative body of the cooperative and mutual insurance sector," Miclat shared. "And their 2018 report validates the sustained momentum 1CISP has achieved,” he added. 

Miclat also announced that 1CISP breached the 2-billion-peso mark in terms of total assets in the third quarter of the year. The insurance cooperative registered total assets of Php2.04 billion as of end-September 2018, a huge 50% growth from the Php1.36-billion asset level in the same period last year.

With this asset surge, 1CISP has outpaced the 18-20% overall growth of the local insurance industry, according to Miclat.

“1CISP, in comparison to corporate insurance counterparts, is growing at a remarkable rate, and believe it or not, this is not an isolated phenomenon in the country. It is a lot more common across the world than previously thought, with a precedent since 2007,” said Miclat, citing the ICMIF outline of industry trends. 

Based on ICMIF analysis over a ten-year period (2007-2017), ICMIF members not only experienced exponential growth, but also outperformed the overall insurance industry average, including non-cooperative insurers. The Key Statistics Report outlines, “ICMIF members have grown at a significantly faster aggregate rate than the global insurance market as a whole. During this 10-year period, ICMIF members increased their collective premium volume by 39.3%, considerably greater than the total market average, which grew by a total of 16.8%.”

“These numbers speak for themselves and support 1CISP’s mission - a prosperous Philippines is a cooperative Philippines," Miclat stressed. "While we take pride in reaching greater heights together with our peers in cooperative insurance, we are even happier that cooperatives are getting the credit they deserve,” he added.

This comes as 1CISP is injecting new vigor into the local cooperative movement through initiatives such as the 1Koop Leaders Academy, an ups-killing training program for future cooperative leaders; and the Coop Kicks, a contest for young innovators and aspiring entrepreneurs to pitch their ideas on cooperative ventures. Launched at the 14th National Cooperative Summit in Davao City last October 3-5, these programs were officially kicked off, with 1CISP set to host in 2019 a tri-city HR Summit to modernize the cooperative enterprise, and a youth pitch fest, respectively. 

1CISP also send a delegation to the biennial ICMIF Asia and Oceania Association (AOS) Seminar 2018 last December 6-7, in Hong Kong. Slated to speak and interact with the youth, Miclat, with other cooperative insurance heads, will lead the Morning Meeting by CEOs and Young Attendees.

It's time to recognize Philippine cooperatives, we have to support them as they become globally-competitive organizations.