Insurance penetration growth should be boosted by fin lit and demographics
Government initiatives to improve financial literacy, as well as demography, tech-savvy young people, and the country’s low insurance penetration rate, are expected to enhance people’s appetite for health and investment products.
Pru Life UK president and chief executive officer Eng Teng Wong said in a video briefing on Thursday that the country’s less-than-2% insurance product penetration rate is a “great opportunity” in a country with a population of more than 109 million people.
“We don’t want to miss out on this,” Wong stated emphatically.
He also stated that the growing emphasis on financial literacy is considered a significant benefit that will assist PruLife UK grow its company.
“This is vital information. “I believe that the present generation, the size of the population, and the demographics of the Philippines, which tend to be younger and more tech-savvy, provide us with an opportunity to overcome the issues that we are currently facing,” he said.
Meanwhile, the insurance company launched its peso-denominated PRUlink Gen Fund on Thursday, which invests in global markets.
During the same virtual briefing, Pru Life UK vice president for investment marketing Mark Anthony Valino expressed confidence in the company’s latest product in the face of the pandemic, saying, “(we have) factored both the opportunity and the potential hazards that may come to the Fund.”
“In addition to the global economic recovery prognosis, the Fund’s multifactor investment strategy really solves the inherent volatility that comes with investing in stocks or equity funds,” he explained.
The Fund holds interests in the United States, Japan, South Korea, the United Kingdom, Canada, Brazil, France, Switzerland, Germany, and Australia, among other countries.