Insurance penetration may have dipped in Asia (excluding Japan) by 5.4%, but that hasn’t stopped the Philippines, along with countries such as Vietnam, Laos, Sir Lanka and India, to register double-digit growths, according to the Allianz Global Insurance Report prepared by Allianz Research.
“Allianz’ strong performance in the Philippines reflects the country’s economic growth and strong macroeconomic fundamentals, and we are looking to leverage on the continuous expansion of economic activity in the country,” says Allianz PNB Life president and chief executive officer Alexander Grenz, who was recently appointed to the position last June 1.
Allianz Research also projects that a 9.4% growth per annum over the next decade in Asia, excluding Japan. Around 60% additional premiums are expected to be generated in the region, as well while market growth in the Philippines is expected to be at 12.3%.
Premiums in the Philippines also grew by 17.7% in 2018, way above the regional average, marking the best rating since 2013. Meanwhile, Life insurance, which accounts for more than 70% of the premium pool (without health), had a growth rate of 20.4%, growing twice as fast as property-casualty at +11.1%.
Allianz PNB Life is still the fastest-growing life insurance company in the Philippines, according to the report of the Insurance Commission. Its premium income grew by 69% in 2018 and its annualized premium income for 2018 stood at a historic high.
For 2019, Allianz Research foresees a slowdown to around 10% premium growth, still above regional or global averages. It noted that the Philippines’ insurance market has still plenty of room to grow: Premiums per capita stood at P3,000 in 2018 (at par with neighboring Indonesia), penetration at 1.9%. Insurance premiums in property-casualty and life are expected to grow by 14% this year and 12.3% over the next decade.
“We all know how fast-paced the insurance industry is; the pressure and expectations are high from all sides – our customers, our investors, our regulators, and among ourselves,” added Grenz, who previously served as the company’s chief operating officer since July 2016 and has held various executive positions for Allianz in different countries.
Alexander also underscored the “simplification of insurance for the customers,” noting that his group must make the language of insurance more accessible to a wider demographic, with help, of course, from Allianz technology.
He is also moving to tap Allianz’s global investment fund managers from the Pacific Investment Management Company, LLC and Allianz Global Investments to provide superior technical solutions and investment strategies.
Another point of emphasis for the new CEO is the company’s “digitalization.” Hence, the company opened its Allianz Digital Studio, which will pioneer the next-generation of innovation and solutions and make the delivery of insurance products and services faster and more efficient for both its internal and external customers.
“Our digital and customer-centric initiatives in the pipeline are geared toward enhancing the Allianz customer experience and differentiate us in the market,” he concludes.
