Life insurance firms thrive in Cebu’s vibrant market
CEBU and the rest of the Visayas market have enabled life insurance companies to grow.
In particular, Allianz PNB Life has posted a 95.6 percent growth in its premium income from P2.71 billion in 2016 to P5.30 billion in 2017, and the firm credits their growth in the Visayas as a key reason.
“Locally, gross premiums closed at P5.3 billion, which is almost double than 2016. Our bancassurance with PNB remains to be the main contributor, with our distributorship deal with HSBC working to our favour as well,” said Dr. Olaf Kliesow, Allianz PNB Life chief executive officer in a statement.
In the Philippines, Kliesow credits their strong performance to their fast-growing presence in the Visayas. The company intends to increase its agents to as much as a 1,000 by the end of the year.
The Insurance Commission has named Allianz PNB Life as the fastest growing life insurer in the country, due to these numbers.
Based on records from the Insurance Commission, the average growth rate of the insurance industry in 2017 was recorded at 11 percent.
The growth of Allianz PNB Life in the Philippines was also faster than the global performance of Allianz.
Kliesow said Allianz’s global operations in 2017 saw total revenues at 126 billion euros, which is a 3% increase over 2016, and an operating profit of 11.1 billion euros.
“This is sparked by our unique agency structure and the agency program called Life Changer, which outs a premium on integrity and the noble purpose of being there at every life stage of the customer. The Life Changer is deeply aligned to our global business goals of providing excellent service and propositions,” said Kliesow.
Increasing presence
Apart from increasing the number of its agents, Allianz PNB Life continues to increase its presence nationwide to make insurance coverage available to more Filipinos and in order to also sustain their growth.
The company recently inaugurated two new Life Track stations in strategic PNB branches, PNB Jaro and PNB Visayas 7. These new stations will become a hub for financial advice and discussions between Allianz and its clients.
The Philippine Life Insurance Association, Inc. (PLIA) is also bullish about the performance of the industry this year.
Kliesow, who is also the PLIA President, believes the industry can continue to see double-digit growth this year saying more Filipinos are now more open to investing in insurance products, particularly life insurance.
This is buoyed by rising per capita incomes of Filipinos, which is supported by the country’s robust economic growth. In the first quarter of 2018, the country’s Gross Domestic Product (GDP) grew 6.8 percent.
Kliesow said he believed the country’s sound macroeconomic fundamentals would also support the growth of the insurance industry.
Expanding access and strengthening the capacity of local players to offer banking, insurance and financial services for all is a target under Goal 8 or the goal on or promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all under the Sustainable Development Goals (SDGs).
The 17 SDGs or the 2030 Global Agenda was signed by over 190 countries, including the Philippines, in September 2015.
“Allianz remains committed to our purpose – to be a substantial contributor in bridging the protection gap. We look forward to seeing Allianz grow even bigger in the Philippines,” Kliesow said.
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