The Philippine Chamber of Commerce and Industry (PCCI) believes that once the country's population is…
The insurance sector benefits from the reopening of the economy and digitalization.
MANILA, Philippines — As expected, the pandemic increased demand for protection goods as more people realized the importance of having personal insurance to assist their families in the event that the breadwinners suffered an untimely death.
Massive job losses occurred, yet some workers were able to save more money thanks to work-from-home arrangements.
People are reclaiming their income sources as the domestic economy continues to improve, which is a positive for the insurance business, according to executives of life insurance companies.
Surendra Menon, chief executive officer of the BPI-AIA, said that people in the tourism sector are steadily regaining employment or finding new ones, which would “produce a multiplier impact across the economy and an optimistic mindset about what the future holds.”
“I’m confident that this will increase the number of people with disposable money while also addressing the demand for protection,” he said.
People wanted insurance coverage, but cashflow inflow concerns, especially during the pandemic, prohibited them from receiving it, according to Menon.
“We fully expect this to considerably improve our economy now that they have a good outlook and cashflow in their pockets.” As a result, purchasing power and growth, particularly in the middle income level,” he explained.
Increased savings as a result of work-from-home arrangements for some workers, according to Michaes Dumlao, a qualified financial consultant and Pru Life UK agent, is a bonus for their ability to obtain protection products.
In an interview with the Philippine News Agency on Tuesday, Dumlao noted that the extra time saved from daily commutes, as well as the use of online services, helped the insurance sector improve sales.
Pre-pandemic, Dumlao stated he was only able to meet with two clients per day on average; now, he can have up to five virtual client sessions per day.
He claims that protections are in place, such as a photo of an insurance agent giving a presentation to a client as confirmation of their legitimacy and a copy of their IDs.
According to Dumlao, they also send a copy of the insurance coverage plan to prospective clients through email so that they can review it before the virtual meeting.
These innovations, he said, are big pluses in terms of meeting more clients without having to worry about traffic or location.
“The ability to hold virtual meetings opened a door, not just a window.” This is a huge aid, especially in Metro Manila, where traffic was a major issue prior to the pandemic,” he noted.
According to Dumlao, an insurance agent cannot get a client in one sitting “unless the client is dead set on acquiring one right away,” thus he must conduct follow-ups.
When asked about insurance claims during the pandemic, he stated that only a few individuals filed them because they became ill, but not necessarily from the coronavirus (Covid-19).
“However, some people withdrew a portion of their insurance policies’ investment portion since their businesses suffered,” he noted.
Dumlao said most of his new clients are breadwinners who want to guarantee the future of their families for all contingencies.
He explained that some clients purchase numerous policies in order to improve their coverage or to have higher assets that they can remove without compromising their insurance in the future.
“So, during the pandemic, it’s the awareness of the losses from not having insurance coverage, as well as the digitization of processes,” he added.