NON-life insurer Mapfre Insular Insurance Corp. saw growth in its property insurance business as more Filipinos insured their homes—transformed into offices after government restricted mobility.
Being one of the largest property insurance providers in the country, Mapfre saw its property insurance sales increase by 8.47 percent to P350.89 million in 2020 from P323.48 million in 2019.
Its property insurance covers household protection against fire, personal liability and other perils.
“The increase of sale in property insurance was mainly attributed to the fact that a great majority of Filipinos have switched to remote work, which meant reinforcing their homes and having it insured to cater to the current work-from-home setup,” Mapfre President and CEO Tirso C. Abad told the BusinessMirror.
The increase in sales lifted the insurer’s confidence dampened by the double-digit decline of its biggest business.
Abad said their motor insurance sales dropped by 23.66 percent to P566.55 million in 2020 from P742.20 million in 2019 as government restricted automobile use.
Likewise, the firm’s personal accident insurance sales were halved (50.23 percent) from P76.19 million in 2019 to nearly P38 million last year.
“Consequently the share of our business slipped from 6.1 percent in 2019 to nearly half at only 3.6 percent last year,” Abad said.
Nonetheless, Abad said, Mapfre recognized there’s still untapped potential for the non-life insurance industry as government scramble for tools to help the economy recover from the health crisis.
Abad said they are confident that the value of property insurance will grow exponentially as remote working has become one of the most practical methods to run businesses.
Moreover, the firm sees the recovery of the economy will enable the non-life industry to see long-term growth, most especially with the products that experienced a significant decline including car, motor and travel insurance.
Overall, Mapfre sees over 6-percent rebound in the Philippines market for the coming years, according to Abad.
For this year, MAPFRE is vowing to continue its digital transformation efforts to better serve its clients.
The insurer said it aims to “constantly improve customer experience by further strengthening claims processes, including notifications and making all products readily available online.”
The company is also looking to launch new products that will cater specifically to small and medium-sized entrepreneurs “and the most vulnerable sectors of the economy.”
Executives said the firm has made a timely decision to strengthen digital capabilities by improving tools and strategies, as well as making products and services easily accessible online. These initiatives paved the way for its clients to get quotes and avail of their travel, compulsory third party liability and personal insurance products in the safety of their own homes.
Its agents can also navigate easier through the digital space through the firm’s web portal that allows its distribution network “to independently issue policies, access account for renewal, instantly draft quotations, process payments and claims with the help of QR codes. Also, Mapre was able to renew and issue policies, process claims, accept and disburse payments to clients.