Top Life Insurance of 2010 & my thoughtsBy Randell Tiongson on June 23rd, 2011
The Insurance Commission has released the ranking of the Life Insurance Industry for 2010 according to revenue or total premiums.
Philamlife keeps its lead in the pack its lead over the Canadian insurer Sun Life is a narrow one with only a 600M lead. 2011 will be an eventful year for 2010’s 2 largest life insurers. Ayala Land’s Rex Mendoza took over the leadership of Philamlife as its newest CEO. Rex Mendoza was Philamlife’s former EVP and the President of Philam Asset Management (PAMI) prior to his transfer to Ayala Land in 2005. Sunlife, on the other hand has acquired substantial ownership of Grepalife & will soon launch a Bancassurance partnership with RCBC. The heat is on between these two and 2011 would be an interesting year to watch.
2010 also saw the dislodging of Insular Life by Axa Life as the 3rd largest insurer in terms of premium income. Further, Prulife UK also gains ground and also overtakes Insular by landing in the 4th place. Canadian insuerer Manulife improves a notch and lands on the 7th place. The Italian insurer & BDO partnership Generali Pilipinas slides to the the 10th spot from its 7th slot in 2009.
Many of the top insurers sells market driven products and it seems that the robust market of 2010 seems to have helped the industry. In contrast, Generali Pilipinas decided to discontinue selling single pay products and focus on the more profitable regular pay products.
While there has been some growth in the life insurance industry, a bigger concern is the minuscule number of Filipinos being insured as compared to our growing population. We still have a very low percentage of insured population which is a tragedy as insurance is a very important tool for risk management and long term savings.
Unfortunately, insurance products are still being pushed and peddled although I know there have been vast improvements on the competencies of intermediaries. It’s just that we need to get all insurers & intermediaries on board and consider the advocacy of education first and foremost. I encourage the insurers and those selling insurance products to try harder in educating the Philippine market on the merits of financial planning — herewith is the key that will unlock substantial & sustainable growth for the industry.
My 2 cents.