The Philippine life insurance sector has emerged as a crucial component of the country's financial landscape, providing individuals and families with essential protection and financial security.
With a growing awareness of the importance of life insurance and an increasing middle class, the industry has witnessed significant growth in recent years.
“We see a lot of young middle-income earners and professionals getting more interested in health and protection products. Their interactions with insurers have now become more dynamic, more proactive and this is due to the influx of digital platforms, fintech integrations and teleconsultation services that are reshaping their behaviours, which we see as further positive signs,” AXA Philippines CEO Ayman Kandil said.
However, it is still reported that insurance penetration rate remains stuck below 2%.
When asked why, Mr Kandil said, “The economy may be growing, but it doesn’t mean everyone is financially secure.”
“The majority of the Filipino population and workforce are in the informal sector and insurance is not among their top-of-mind consideration,” he said.
The biggest challenge in life insurance adoption in the Philippines is financial education, Mr Kandil said.
Specific to life insurance, there is still a widespread lack of understanding of what it truly offers. It continues to be seen primarily as a death benefit rather than a tool for long-term financial security or future planning. This misperception is even more pronounced outside urban areas,” he said.
A more in-depth version of this article will appear in the September issue of Asia Insurance Review, out on 1 September.