The current global situation has highlighted the importance of having insurance to protect oneself and one’s assets. As the world becomes increasingly uncertain and unpredictable, insurance is becoming an essential tool for mitigating risk and ensuring financial security. With the right coverage, individuals and businesses can protect themselves against unexpected events, such as natural disasters, accidents, and illnesses. Additionally, insurance provides a sense of peace of mind, knowing that one is prepared for the unexpected.
The Philippines is indeed a country that is highly susceptible to natural disasters and other risks. With an average of 20 typhoons a year, and a location in the Pacific Ring of Fire, the Philippines is at a high risk of natural disasters such as earthquakes and volcanic eruptions. Additionally, the rise in pre-pandemic city traffic and an increase in vehicular accidents further exacerbate the risk.
Despite this, insurance penetration in the Philippines has been relatively low compared to other countries. According to the Philippine Life Insurance Association, insurance penetration in the Philippines hit an unprecedented 2.3% of GDP in September 2021, with Filipinos spending an average of 26% more on insurance. However, this is still relatively low compared to other countries, which highlights the need for increased awareness and education about the importance of insurance.
As the Philippines continues to face various risks and uncertainties, it is crucial for individuals and businesses to have adequate insurance coverage to protect themselves and their assets. Insurance companies and the government should also play a role in promoting insurance education and making insurance products more affordable and accessible for Filipinos.
The merger between AXA Philippines and Charter Ping An is a positive development for the insurance industry in the Philippines. By bringing together life and non-life insurance products under one recognized global brand, AXA Philippines will be able to make insurance more accessible and understandable for Filipinos, who are becoming more aware of the importance of investing in insurance to secure their future. This will be particularly important in light of the uncertainty and unpredictability of the current global situation.
“The rapid digitalization of many insurance services that the recent pandemic made necessary has helped the industry grow, but too many Filipinos are still one crisis away from poverty,” said Nandy Villar, Chief Marketing Officer of AXA Philippines.
The website BIS.org puts the global insurance penetration average at 6.1% in 2017, with the Asian Average at 5.6%, and the ASEAN average at a very low 3.6% . Even with penetration in the Philippines at an all-time high, we are clearly highly underinsured as a nation. The Insurance Commission (IC) cites a lack of financial literacy as the main culprit.
In a recent forum, Deputy Commissioner Ferdinand George “Bong” Florendo of the Insurance Commission cited a September 2022 Worldbank report which indicated that only 25% of Filipinos are financially literate, compared to 36% in Malaysia and 59% in Singapore .
“At AXA we take pride in our role not just as insurers, but also as financial advisors. Because there are so many things in life that need to be protected, many find investing in insurance daunting. That is why we have a pool of trained and qualified financial advisors to help customers make the best choices for their needs and budgets. Most people understand the fundamental need for insurance, but our financial advisors are here to be your partner towards financial freedom,” Villar emphasizes.
The key to getting the right insurance to protect everything that matters is getting sound advice, the kind of advice AXA Philippines is ready and able to provide, along with every type of insurance to help you protect what matters. Every person’s insurance needs are unique, and they also change over time and with age, and differences in circumstances. For a thorough professional financial needs assessment, AXA Philippines is the only name you need to remember. Go to https://www.axa.com.ph/ to learn more about how best to address the insurance needs that are unique to you.
In uncertain times, insurance offers protection for the things that matter most.
