Early this week the education pre-need plan of the GSIS has shown signs of wearing out. Plan holders are worried tight that their children may not be able to enrol this coming semester in June due to the inability of the system to release checks to recipients. This is surprising considering that that government insurance outfit has been boasting all along of its “matatag” slogan.

This present predicament of hundreds of thousands of parents worsens at the poor conditions of this kind of insurance ignited by the CAP, then the Pacific Plan to a level of incompetence not only of these organizations but also of those in government that are mandated to control and supervise these public and private groups. Surely, they were being monitored from the start. What of the noise of legislators that they are going to make this law and that, there should really be something wrong.

For an insurance, whether it be health, property, or life or at this instance, education, the actuarial (statistical evaluation) priorities are based on: (1) the risk must have a sufficiently large number of homogeneous units; (2) a loss must be measurable; (3) the premium charged on the risk must be low; and (4) the risk must be free of any large-scale potential catastrophe. (Risk here refers to the insured at good standing.)

It may be gleaned from these basic principles which are universally accepted in the industry that even though investments by the Plans take a notable profit, it can still be threatened and demolished by the “potential catastrophe” clause.

Take note that all of them (the Plan insurers) are complaining of the high tuitions clients are made to pay in schools. Nonetheless, I doubt if their actuaries would that dumb, I mean no anticipations in progressing needs, when that’s their job. Is predictive statistics now a cliche?

Investments and overheads are therefore easy culprits.

On the brighter side, there are parents who started with the plans in the ‘70s and ‘80s who claim that what they ventured on is good. The children’s education was well cared of, they assured. Some on later years, say that, albeit their children are in the middle of their college courses, what they already got from the insurers are over and above their investments.

It is noted fact that insurance is a part of any economy. It reduces financial dislocation and spreads monetorial loss. Without insurance, business wherever you find it, would walk with one leg.

Mind you, a good number of Filipino expatriates returns to the country when ill. They could not afford medical care in their adopted countries when not having health insurance. How much would you need, like in the States, just for consultation? Over two hundred US dollars and you have not yet been treated by a doctor. So at first contact with the hospital, you’re asked: are you covered by a medical insurance?

And all along in our communities, the government is there raking benefits on its own insurance systems. But the million dollar question smacks us on the face, what is it doing for the insurance industry?
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Congratulations to Francis and Anicel and their parents: Pros. Eulogio I. Prima and Mrs. Esther B. Prima; Kagawad Celestino B. Enciso and Mrs. Anita R. Enciso, and their families, for the solemn acceptance by the former of matrimony to be held at the St. Jude Thaddeus Parish, Naga City, April 23, 2005, 3:30 p.m. May your tribe increase a hundred-fold.