AIA Philippines Life and General Insurance Co. Inc. (AIA PHL) expects higher spending for insurance, particularly health-related products, believing that Filipinos realized the value of protecting their lives and assets post-pandemic.
According to CEO Kelvin Ang, AIA PHL believes the Covid-19 pandemic raised awareness on insurance products.
“The total coverage has almost doubled since before the pandemic and in particular we see the health insurance side outgrow the total sum insured,” Ang said in a news briefing last Wednesday. “They are now more interested in health insurance.”
The AIA PHL executive added the firm sees the life insurance industry continuing to grow post-pandemic.
“We are bullish for health insurance as strong demand for such continues.”
According to Ang, AIA PHL paid P8 billion in claims last year while its subsidiary Medicard Philippines Inc. paid P4 billion in claims.
“People are now seeing why insurance, particularly health insurance, is important,” he said.
Ang pointed out the country’s insurance penetration rate remains below two percent of gross domestic product, which indicates “a huge opportunity” for sellers of insurance products.
“The insurance market is very underpenetrated. It will continue to be a good year for us. People realize the importance of insurance so they increase their sum insured and even introduce insurance to other family members,” he said.
Ang keeps his optimism amid rising inflation across the world and slower world economic growth.
AIA Group Ltd. Chief Investment Officer Mark Konyn, who flew in from the firm’s Hong Kong headquarters, said the world is currently facing high volatility prices of goods and services against a backdrop of prolonged geopolitical tensions and uncertainties.
Despite this situation, Konyn said there are still opportunities that Filipino investors must capitalize in order to improve their financial status.
The CIO outlined the following as the positive economic prospects: managed inflation print, growing young Filipino workforce, and the country being a net winner of the global transition to renewable energy to its natural endowments.
Konyn emphasized that the need for “professional” investors or managers are necessary more than ever in order for individuals to make the correct investments during this unpredictable global economic period.
Because of this, the AIA disclosed that it is launching a new fund that would allow Filipino investors to penetrate both local and global markets and grow their money while earning additional income through dividends.
AIA explained that its forthcoming Global Dynamic Income-Paying Fund allows customers “to earn dividend payouts with a potential increasing percentage when available.”
“They can stay invested while receiving potential dividend pay-outs, ensuring that long-term savings growth opportunity is sustained. This is primarily because dividend pay-out will not be treated as a withdrawal from the policy’s account value,” the firm said.
AIA posted a net worth of P71.709 billion at the end of first quarter, topping the local life insurance industry, based on Insurance Commission (IC) data. AIA Philippines is the local unit of AIA Group Ltd.