DEPITE the hurdles associated that the pandemic established on progress, the year 2021 stays a “year of growth,” in response to Insurance Commissioner Dennis B. Funa.
Citing information from interim experiences for the third quarter of final year, Funa mentioned the industry’s complete web revenue grew by 31.04 p.c year-on-year whereas premium revenue rose by 28.71 p.c. Investments additionally grew by 14.02 p.c whereas property elevated by 12.5 p.c.
The chief of the Insurance Commission (IC) mentioned he considers it lucky that the trade was capable of begin digitalization lengthy earlier than the pandemic ensued.
“This year’s numbers continue to show the industry’s resilience; and, in fact, the industry was able to bounce back and even able to grow notwithstanding the adverse economic effects of the pandemic last year,” Funa instructed the BusinessMirror.
The regulator’s transfer to increase varied regulatory reliefs, e.g., the extension of deadlines for submitting and submission of reportorial necessities and the 50-percent discount on penalties for non-submission of these paperwork, could have contributed to the industry’s higher numbers.
Other measures had been enjoyable the admittance of receivable accounts of non-life insurers {and professional} reinsurers in addition to directing well being upkeep organizations and well being insurance suppliers to situation certificates of employment to their workers to exempt them from house quarantine necessities.
Backlog, changes
FOR Sun Life of Canada (Philippines) Inc. CEO and Country Head Benedict C. Sison, the life insurance trade has adjusted nicely with the altered working setting almost two years into the pandemic.
“We are making the most of working with a hybrid-office setup, online mode of communication across the organization, digital means of distributor recruitment, training and selling, and the expanded digitalization of client interaction,” mentioned Sison, whose time period as Philippine Life Insurance Association (PLIA) president ended final December 30. “It helps that clients are now more open about online insurance-related transactions and increased trust in online dealings with agents, as well as in sharing personal information and documents electronically.”
Sison added that “in the general context, the challenges imposed by the pandemic have led to opportunities to create innovative new solutions and digital initiatives for our clients.”
However, the previous PLIA president admitted that a slowdown in agent-licensing was initially a problem for the trade because it has disrupted the in-person conduct of written qualifying examination.
“This [left] a void in the licensing of new agents whenever suspended and catch-up from the backlog takes time due to limitation in the number of allowable examinees in accordance with IATF heath protocols,” Sison instructed the BusinessMirror.
Eventually, this downside was addressed by the IC by launching its “online agent computerized examination,” or Online ACE, in March final year.
Advantage of tech
AS for the non-life insurance trade, Philippine Insurers and Reinsurers Association (Pira) Executive Director Michael F. Rellosa mentioned the lockdown measures hobbled the tempo of digitalization efforts as extra purchasers alter to on-line transactions.
Nonetheless, Rellosa mentioned most firms have already digitalized their means of doing enterprise, taking benefit of on-line conferences, for instance.
“They’ve also developed or started developing online facilities for premium payments and, to some extent, even claims settlement,” he defined.
Rellosa added the trade additionally needed to take care of larger prices of doing enterprise to attenuate worker well being dangers and paired with necessities for a work-from-home setup.
Nonetheless, he mentioned whereas the trade suffered a hit, the losses had been typically decrease. He famous that is particularly so for the motor-insurance sector.
Still, Rellosa and Sison expressed concern over the Omicron variant of Covid-19 that might result in a surge in instances and immediate one other spherical of lockdown measures. (Editor’s word: This story was crafted earlier than the Duterte authorities reverted the National Capital Region to Alert Level 3 starting January 3.)
Digitalization push
THE executives mentioned some insurers could also be unable to satisfy the mandated P1.3-billion minimal net-worth requirement by December 2022 below Republic Act 10607 or the Insurance Code.
But Funa mentioned the insurance trade has your complete year to deal with this matter.
“As regards compliance with the minimum-net worth [requirement], it may be too early to tell at this juncture considering that insurers have the entire 2022 to prepare for compliance,” he defined. “However, it may be noted that insurers have options for business combinations such as mergers, consolidations and acquisitions for them to be able to comply with the P1.3 billion minimum net worth requirements come end of 2022.”
Rellosa mentioned they’re hoping that the IC could be extra responsive and fast to behave on a quantity of petitions they filed with the regulator.
But Sison mentioned the PLIA is trying ahead to working with the IC to considerably raise the capability of “Online ACE” and for the regulator to ramp up its efforts to digitalize its operations.
“As with the industry players, we trust that the Insurance Commission would continue to embrace the digitalization of its operating environment, not merely as a response to the pandemic but one as a strategic choice to become more operationally efficient and responsive to its regulated entities and the public it serves,” he added.
Sison mentioned PLIA additionally hopes firms would be capable to increase their capability and overcome the challenges the brand new year would carry.
Sustainable, appropriate
MOVING ahead, Funa expressed optimism the insurance trade will stay on its growth path this year.
“The outlook is generally positive. As the country’s economy is projected to grow in 2022, we anticipate that the insurance industry will likewise grow considering the industry performance trends this year,” the IC chief instructed the BusinessMirror final December. “Considering the pandemic experience, we believe that the industry has adapted and continue to adapt their business operating models in facing evolving financial, technological and even climate-related risk.”
Funa vowed to maintain, if not improve, the Commission’s efforts in fostering the industry’s growth by the issuance of regulatory measures. It additionally hopes to adapt and incorporate worldwide developments; not solely insurance expertise and supervision expertise.
It additionally goals to extend the nation’s insurance penetration fee by elevating public consciousness of insurance safety.
“If something positive came out of the challenges brought about by the pandemic, it is the increased awareness among Filipinos of the benefits brought by having insurance protection,” Funa instructed the BusinessMirror. “We suppose that this consciousness will improve within the years to come back, and we are going to assist in the insurance schooling side maybe by organizing consciousness campaigns within the following year.
He added that the insurance trade “will, likewise, have to introduce products to the market that are not only competitive and sustainable, but are suitable to the ever-changing needs of the insuring public.”
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