Pru Life bullish on PH insurance sector
BALESIN ISLAND, Quezon—Pru Life UK Philippines said it expects insurance sales to increase by more than 20 percent this year, as it continues to widen policy holders’ distribution.
Pru Life UK president and chief executive Antonio de Rosas told reporters the insurance company posted an average growth of 22 percent over the last five years.
“Year-on-year from 2010 to 2014 our compounded growth rate is 22 percent... we target to maintain and even surpass that,” de Rosas said at the sidelines of the Life Insurance Seminar 101 for the Philippine media here on Wednesday.
He said Pru Life UK also aimed to increase the current 12-percent share in the domestic insurance market as more Filipinos were expected to be insured. Insurance penetration rate in the Philippines stood at 1.5 percent in 2014.
De Rosas said the projected growth would be driven by recruitment forces and the quality of products focusing on the protection of distributors and value of policy holders.
He said 82 percent of the total income of Pru Life UK were from agent sales while the remaining 18 percent came from broker bank partners.
“We will continue the sale of regular and single premiums,” de Rosas said.
Pru Life UK also asked the insurance industry regulators to adopt international standards in measuring sales of insurance companies.
De Rosas said the industry should adopt the annual premium equivalent in measuring sales of the industry, which was now being used by neighboring Southeast Asian countries.
“Insurance Commission considers 100 percent of single premium business. However, this somehow distorts the premium income for a year since single premium covers the entire period of the policy,” according to a report by National Reinsurance Corporation of the Philippines.
Under the measures being used by the IC, Pru Life UK’s premium income stood at P15.634 billion in 2014, the fourth among the industry. Under the APE system, where only 10 percent of the single premium is considered, Pru Life UK’s income stood at P8.13 billion, which ranked it third among the industry players.
“There is one universal measure and why we should adopt it and the IC should adopt it,” said De Rosas.