Fortunately, there has been some improvement in how Filipinos perceive insurance. Filipinos have already become far more aware of the importance of investing in insurance to secure the future. This had to happen sooner rather than later, because aside from the problem of runaway inflation, life in general, and life in the Philippines in particular, is full of uncertainty.
With an average of 20 typhoons a year, five that do major damage according to the Asian Disaster Reduction Center, and our unfortunate location in the Pacific Ring of Fire, we are statistically the most natural disaster-prone country in the world 1 . Pre-pandemic city traffic is also almost entirely back, and vehicular accidents are on the rise as well.
As early as September of 2021, while COVID-19 was still a problem for much of the world, insurance penetration in the Philippines hit an unprecedented 2.3% of the nation’s GDP, with Filipinos spending an average of 26% more on insurance, according to the Philippine Life Insurance Association 2 . However, this has not nearly brought us abreast of much of the rest of the world.
“The rapid digitalization of many insurance services that the recent pandemic made necessary has helped the industry grow, but too many Filipinos are still one crisis away from poverty,” said Nandy Villar, Chief Marketing Officer of AXA Philippines.
The website BIS.org puts the global insurance penetration average at 6.1% in 2017, with the Asian Average at 5.6%, and the ASEAN average at a very low 3.6%. Even with penetration in the Philippines at an all-time high, we are clearly highly underinsured as a nation. The Insurance Commission (IC) cites a lack of financial literacy as the main culprit.
In a recent forum, Deputy Commissioner Ferdinand George "Bong" Florendo of the Insurance Commission cited a September 2022 Worldbank report which indicated that only 25% of Filipinos are financially literate, compared to 36% in Malaysia and 59% in Singapore.
“At AXA we take pride in our role not just as insurers, but also as financial advisors. Because there are so many things in life that need to be protected, many find investing in insurance daunting. That is why we have a pool of trained and qualified financial advisors to help customers make the best choices for their needs and budgets. Most people understand the fundamental need for insurance, but our financial advisors are here to be your partner towards financial freedom,” Villar emphasizes.
The key to getting the right insurance to protect everything that matters is getting sound advice, the kind of advice AXA Philippines is ready and able to provide, along with every type of insurance to help you protect what matters. Every person’s insurance needs are unique, and they also change over time and with age, and differences in circumstances. For a thorough professional financial needs assessment, AXA Philippines is the only name you need to remember.
Go to https://www.axa.com.ph/ to learn more about how best to address the insurance needs that are unique to you.
0 Comments