LIFE insurance company Pru Life UK vowed to sell more protection products to help close the protection gap in the country.
The company launched in Cebu yesterday its newest life insurance product called Prumax Invest, a 15-year renewable term plan which provides comprehensive protection coverage that integrates traditional and unit-linked life insurance products.
According to Maria Divina Furagganan, senior vice president-chief agency officer at Pru Life UK (Philippines), while insurance penetration in the Philippines remained low at less than two percent, the country’s protection gap continues to widen vis-a-vis its counterparts in Asia Pacific.
Citing data from the Swiss Re Mortality Protection Gap Asia Pacific 2015 report, Furagganan said the Philippines has a $370-billion mortality protection gap based on 2014 data that would translate to about P600 billion worth of premiums annually.
“The $370 billion is the coverage that Filipinos should have but don’t have yet,” said Furagganan, adding that the P600 billion worth of premiums annually could have helped the insurance industry grow five times.
At present, the country’s insurance sector has generated over P100 billion in premium income.
A mortality protection gap is the difference between the amount of life insurance a policy holder carries and the amount they need to sustain the living standards of their eligible dependents, should the life insurance policy holder die.
The mortality protection gap in the Asia-Pacific has widened to $58 trillion in 2014, equivalent to 255 percent of the region’s gross domestic product.
“A perceived lack of affordability, low insurance and risk awareness, regulatory and social barriers, as well as limits to insurability are other key factors inhibiting the purchase of insurance,” the study pointed out.
The study covered 13 markets, namely South Korea, Hong Kong, Singapore, Japan, Australia, China, Malaysia, Thailand, India, Taiwan, Philippines and Indonesia.
Furagganan said Pru Life UK sees Prumax invest as an effective tool to attract more Filipinos to get insured. It targets the low to middle-income class, startup families, singles and young professionals.
Pru Life UK has more than 200,000 policyholders in the Philippines.
Asked when is the best time to invest given today’s economic and political conditions, Antonio Garces II, the company’s vice president for investments, advised that it is important for Filipinos to get invested as early as possible and the longer, the better.
“The underlying important goal here is for Filipinos to have protection while they are saving,” said Elaine Katindog, the company’s vice president for new agent training and productivity.
Prumax invest covers the base traditional plan Prumax Value 15 and the investment component variable life rider, which also provides policyholders with the flexibility to choose where to invest their premiums from among Pru Life UK’s extensive fund portfolio for a minimum annual premium of P5,000.
Its PruLink funds are invested in a diversified portfolio of assets managed by Singapore-based Eastspring Investments.
Pru Life UK has been in the Philippines for 20 years. It has expanded its reach to over 80 branches in the country, with 14,000 licensed agents.
The company has eight branches in Cebu and contributes some 13 percent of the company’s total production. It has about 1,500 employees.
Pru Life UK is eyeing expansion to other emerging cities like Davao, Cagayan de Oro, Digos, General Santos and Bohol, among others.LIFE insurance company Pru Life UK vowed to sell more protection products to help close the protection gap in the country. The company launched in Cebu yesterday its newest life insurance product called Prumax Invest, a 15-year renewable term plan which provides comprehensive protection coverage that integrates traditional and unit-linked life insurance products.
According to Maria Divina Furagganan, senior vice president-chief agency officer at Pru Life UK (Philippines), while insurance penetration in the Philippines remained low at less than two percent, the country’s protection gap continues to widen vis-a-vis its counterparts in Asia Pacific.
Citing data from the Swiss Re Mortality Protection Gap Asia Pacific 2015 report, Furagganan said the Philippines has a $370-billion mortality protection gap based on 2014 data that would translate to about P600 billion worth of premiums annually.
“The $370 billion is the coverage that Filipinos should have but don’t have yet,” said Furagganan, adding that the P600 billion worth of premiums annually could have helped the insurance industry grow five times.
At present, the country’s insurance sector has generated over P100 billion in premium income. A mortality protection gap is the difference between the amount of life insurance a policy holder carries and the amount they need to sustain the living standards of their eligible dependents, should the life insurance policy holder die.
The mortality protection gap in the Asia-Pacific has widened to $58 trillion in 2014, equivalent to 255 percent of the region’s gross domestic product.
“A perceived lack of affordability, low insurance and risk awareness, regulatory and social barriers, as well as limits to insurability are other key factors inhibiting the purchase of insurance,” the study pointed out.
The study covered 13 markets, namely South Korea, Hong Kong, Singapore, Japan, Australia, China, Malaysia, Thailand, India, Taiwan, Philippines and Indonesia.
Furagganan said Pru Life UK sees Prumax invest as an effective tool to attract more Filipinos to get insured. It targets the low to middle-income class, startup families, singles and young professionals.
Pru Life UK has more than 200,000 policyholders in the Philippines.
Asked when is the best time to invest given today’s economic and political conditions, Antonio Garces II, the company’s vice president for investments, advised that it is important for Filipinos to get invested as early as possible and the longer, the better.
“The underlying important goal here is for Filipinos to have protection while they are saving,” said Elaine Katindog, the company’s vice president for new agent training and productivity.
Prumax invest covers the base traditional plan Prumax Value 15 and the investment component variable life rider, which also provides policyholders with the flexibility to choose where to invest their premiums from among Pru Life UK’s extensive fund portfolio for a minimum annual premium of P5,000.
Its PruLink funds are invested in a diversified portfolio of assets managed by Singapore-based Eastspring Investments.
Pru Life UK has been in the Philippines for 20 years. It has expanded its reach to over 80 branches in the country, with 14,000 licensed agents.
The company has eight branches in Cebu and contributes some 13 percent of the company’s total production. It has about 1,500 employees.
Pru Life UK is eyeing expansion to other emerging cities like Davao, Cagayan de Oro, Digos, General Santos and Bohol, among others.
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