Pioneer sees growing demand for ‘sachet-style’ insurance

SINGAPORE — Pioneer Group of Companies sees rising demand for “sachet-style” insurance products as climate-related risks heighten vulnerabilities among low-income communities in the Philippines.

“You really want to empower people. You want them to take responsibility for their lives. But they can’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 affordable microinsurance products are becoming increasingly important 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 business case. [But,] there is business case,” he said.

The Philippines was ranked the world’s most disaster-prone nation for the 21^st straight year in the 2025 WorldRiskIndex by Germany’s Bündnis Entwicklung Hilft and Ruhr University Bochum.

“There are enough insurers, there are enough needs. What we have is a lack of those willing to look beyond the business case to give it a go,” Mr. Chan said.

Pioneer’s microinsurance products are primarily distributed through CARD Pioneer Microinsurance, Inc., its joint venture with CARD Mutually Reinforcing Institutions (CARD MRI).

In the Philippines, the Pioneer group includes Pioneer Life, Inc., Pioneer Insurance and Surety Corp., M Pioneer Insurance, Inc. — its joint venture with Manila Electric Co. (Meralco) — and CARD MRI.

Under Republic Act No. 10607, or the Insurance Code of the Philippines, microinsurance daily premiums cannot exceed 7.5% of the daily minimum wage for a non-agricultural worker in Metro Manila.

Mr. Chan said the company plans to expand its microinsurance offerings for farmers and fisherfolk.

Last year, Pioneer partnered with Nestlé Philippines to provide crop insurance for coffee farmers in Sultan Kudarat to help protect production against climate-related risks.

In 2025, the group recorded 36.7 million enrollments in its microinsurance products and generated more than P4 billion in premiums.

According to Insurance Commission data, Pioneer Insurance was the top nonlife insurer last year in terms of premium income, with P6.903 billion in net premiums written. — Beatriz Marie D. Cruz