by PNA
After the bankruptcy of Prudential Life Plans, do you still trust life insurance companies in the Philippines?
Life insurers sees continued growth of the industry this year amid the negative external environment as well as the current issues being faced by the pre-need industry.
Philippine Life Insurance Association (PLIA) President Gregorio Mercado, in a briefing Tuesday, said unaudited premium income for 2011 shows a growth of about 21 percent to P85.5 billion over year-ago’s P70.7 billion.
“Assuming the economic issues affecting Europe and the USA do not get any worse, we project a double-digit growth of about 16 percent this year or about P100 million premium level income,†he said.
Mercado stressed that the life insurance industry in the Philippines is still strong as compliance among the 21 active players on the rules remains high.
He said “absence of undue distractions enables players to focus on professionalism, product innovation and service excellence.
He explained that life insurance companies in the country have enjoyed extreme longevity due to among others longer-term investments that have better returns and liabilities that have longer terms also.
He said the industry welcomes very much the decision of the Bureau of the Treasury (BTr) to issue more longer-term notes like 10-year and 20-year debt paper as these are good-yielding investments because these are good match for the industry’s liabilities.
Relatively, the industry is grateful for the developments of the country’s micro-insurance industry as this is a good vehicle to further increase the number of Filipinos that have insurance.
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