MANILA — A Philippine life insurance industry executive is optimistic about a 16 percent growth in the gross written premiums of the sector in 2018, driven mainly by the rise in the number of the middle class.
In an interview after the induction ceremony of new Philippine Life Insurance Association, Inc. (PLIA) officers in Makati Thursday, PLIA President Olaf Kliesow said that if the industry grew by 7 percent in the last quarter of last year, same as its growth in the same period in 2017, then a 16 percent full-year growth is possible based on their estimates.
“I would be very positive that it would be a double digit growth in any event. It’s just a question whether somewhere in the range between 10 and 16 percent. But at this point it’s speculation so let’s wait for the figures of the fourth quarter,” he said.
“Overall, for sure, we can already tell another positive year for the life insurance sector, which is adding up very nicely to previous years,” he said.
The possible 16 percent growth in 2018 is an improvement from the around 11 percent or low double digit expansion in 2017, he said.
Data from the Insurance Commission (IC) showed that at the end of the third quarter of 2018, the life insurance sector registered a PHP174.15 billion in total premiums.
Kliesow attributed the expansion of the life insurance sector to a combination of the growing middle class and the strong domestic growth.
“So it’s a reflection of the strong economic output also in 2018. And more and more people are becoming aware of the need to be insured,” he said.
Another factor is the financial literacy and awareness programs of the life insurance companies, he said.
For 2019, the PLIA president, who is also the Chief Executive Officer of Allianz PNB Life, is hopeful for the industry’s expansion.
“I would be very happy if it’s another year that would generate premiums in excess of 10 percent,” he said, citing positive forecasts for the economy and the stock market for this year.
