More Filipinos seen open to buying life insurance products
More Filipinos are now willing to get life insurance following the pandemic, according to BDO Life Assurance Company, Inc. Chief Executive Officer Renato A. Vergel de Dios.
“The lesson we’ve learned from the pandemic is that you can go anytime so you better be ready,” he said during a virtual forum on Tuesday.
“Now that we’re normalizing, people are catching up to [that thinking]. It’s not that we’re seeing mass purchasing, but people are more open to it,” he added.
For those who are fairly stable, it has been a good time to buy life insurance. Meanwhile, others are at least considering it more even if they do not end up buying, Mr. Vergel de Dios noted.
“What it does is provide a safety net. That’s why it’s called a Plan B, so that it covers for you when your Plan A fails.”
In 2022, the insurance industry’s combined assets rose 2.14% year on year, with its total net worth also rising12.35%, according to data from the Insurance Commission.
Based on submissions made by 128 out of 134 licensed life and nonlife insurers and mutual benefit associations, the industry’s combined assets, net worth and premiums stood at P2.14 trillion, P445.35 billion, and P379.23 billion, respectively, last year.
BDO Life’s premium income in 2022 reached P19.17 billion, the fifth highest among life insurers, the Insurance Commission said.
Frederico Rafael D. Ocampo, BDO Unibank’s chief investment officer, said that the demand for insurance makes sense given the state of the Philippine economy.
“We saw 7.6% GDP growth in 2022. We’ve become one of the fastest growing economies post-pandemic,” he said.
He added that individuals will need to reassess their investments, especially around riskier types like equities, to ensure they match with one’s investment horizon and risk profile. Meanwhile, life insurance offers financial protection in the event of death.
“One instrument that many often dismiss as unnecessary, but in fact remains essential, to enhance one’s family’s financial security and survival, is life insurance,” said Mr. Ocampo.— Brontë H. Lacsamana
