The AIA Group Limited (AIA) plans investing P3 billion into the Philippine American Life and General Insurance Co. (Philam Life) over the next three year to gain more of the local insurance market.
The gap relates to the amount of insurance cover that makes economic sense versus the amount actually purchased
According to AIA, the amount will be invested in nurturing and developing a new set of full-time and highly professional leaders and expand the scope of the business.
Philam Life CEO Kelvin Ang said the investment will help the insurer address the huge protection gap in the Philippines.
“We will invest P3 billion over the next three years in building agency distribution,” Ang said.
“Given the size of the economy and the protection gap, we want to have good distribution network that can complement and co-exist. This time we are making our agency distribution bigger. We feel that the market opportunity is enormous,” he added.
The insurance executive said accelerating the agency force to reach more Filipinos and address customer needs remain of paramount importance.
“The unique development program targeting 5,000 elite leaders is a long-term strategy that will contribute to sustainable growth in the business,” Ang said.
“At the same time, our thrust to help close the protection gap of the country will ensure that we stay true to our brand promise of helping Filipinos live healthier, longer, better lives,” he quickly added.
The gap relates to the amount of insurance cover that makes economic sense versus the amount actually purchased.
AIA Group Regional Chief Executive Jacky Chan bared the same sentiment, saying prevailing market condition supports continued growth for the insurer.
“We remain confident of the long-term outlook in the Philippines. Protection gap is currently at P1.5 trillion and expected to balloon to P2.7 trillion by 2020, while the insurance penetration rate remains in the single digit at less than two percent,” Chan said.
“This, combined with its relatively steady (economic) growth and growing middle class, tells us that all indicators point to a resilient Philippine economy with a lot of potential,” he added.
The insurer on Thursday also launched its newest product, the AIA Critical Protect 100, which aims minimize client out-of-pocket medical expenses in the Philippines.
The new product coincides with the insurer’s centennial year and covers 100 critical illnesses from age 0 to 100. This compares against other insurance products that terminate medical cover benefits by age 70.