BDO Life Insurance Reports Strong Business Recovery and Growth in the Philippine Insurance Sector
The Philippine Insurance Commission (IC) recently released a report showing that the life insurance sector’s total premium revenues reached P229.9 billion in the third quarter of 2023. This represents a 13.9% increase in Annual Premium Equivalent (APE) premiums on new insurance sales compared to the same period in 2022. APE is the annual total value of all single and recurring premium policies.
The growth in new life premiums is attributed to the sale of traditional life insurance, as sales of variable life insurance have decreased due to the volatility of equity markets in recent years.
Renato A. Vergel De Dios, President and CEO of BDO Life Assurance Company, Inc. (BDO Life), emphasized the importance of life insurance coverage in securing a family’s financial future. He also highlighted the role of the life insurance industry in nation-building by pooling together long-term capital critical for the Philippines’ economic development.
Insurance companies play a crucial role in fueling economic growth by strategically channeling long-term funds generated from premiums into areas such as infrastructure development and manufacturing capacity expansion. This supports national development and financial prosperity, as emphasized by the Asian Development Bank (ADB).
Vergel De Dios also emphasized the importance of encouraging all Filipinos, including Overseas Filipino Workers (OFWs), to acquire life insurance coverage to protect their earning capability and fortify family financial security. Meanwhile, the investments made by insurance companies create material and local job opportunities, helping to minimize the need for Filipinos to work abroad.
In terms of bancassurance, BDO expects it to remain a consistent, complementary contributor to its overall financial services business. BDO Life exhibited strong business recovery in 2022, claiming the 4th spot in new sales in terms of New Business Annual Premium Equivalents (NBAPE), a weighted measure of premiums from new business.
The steady rise in life insurance sales in recent years indicates the growing awareness of the importance of insurance protection among Filipinos, according to Vergel De Dios. Life insurers are among the largest corporate investors in the country, and they hope to create material and local job opportunities to help minimize the need for Filipinos to seek work abroad.
