Financial assets among advantages

The country remains one of the stronger players in Asia Pacific when it comes to financial assets growth, Bangko Sentral ng Pilipinas Governor Felipe Medalla.

"The Philippine economy is much stronger now in comparison to during the Global Financial Crisis," Medalla said.

Gross domestic product grew by 7.8 percent in the first half of 2022, the BSP governor said recently.

Meanwhile, the Allianz Global Wealth Report 2022, which puts the asset and det situation of household sin 60 countries under a microscope, said that even amid rate hikes imposed by the US Federal Reserve System to combat inflation, the Philippine economy could remain stable, as long as appropriate policies are implemented.

Growth to climb

For his part, Finance Secretary Benjamin Diokno agreed with the Asean+3 Macroeconomic Research Office projection that the Philippines is expected to post the highest economic growth rate in the region, because of the reopening of the economy, domestic consumption, and infrastructure investment.

In terms of gross financial assets, the Philippines has seen a 10.4-percent increase, primarily driven by the development of life insurance and pension assets.

Insurance growth, in particular, rose by 13 percent. However, insurance penetration in the Philippines is still among the lowest in Asia.

"There is a massive need for financial protection and literacy in the Philippines, considering an insurance penetration rate of just around 2 percent. This translates to millions of Filipinos exposed to financial losses, and a protection gap that amounts to trillions of pesos," Allianz PNB Life's chief financial officer Fang Siong Chong said.

"But as observed, Filipinos are gradually investing in insurance protection products. In 2021, the Insurance Commission reported that the annual growth rate in premiums earned was at its highest since 2016 at 25.03 percent," Chong said.

"Whether it's through the realizations made during the pandemic or because a new generation of Filipinos are thinking more about securing their future, we are confident that the insurance gap will continue to diminish," Chong added.