MANILA, Philippines - Insular Life Assurance Co. Ltd. said it aims to expand its total premium income this year by eight to 10 percent from the P5.9 billion recorded in 2008.
Last year, majority of the country’s life insurance companies suffered as total premiums shrunk 33.4 percent to P50.698 billion from the record P76.213 billion in 2007.
Insular Life reported total premium income of P7.69 billion in 2007.
In the first semester of 2009, first year business or premiums reached P906 million, 36 percent higher than the previous year.
Insular Life chief executive Vicente Ayllon attributed the strong growth to its continued offering of traditional life products over the investment-laced variable life products.
In a briefing this week, Ayllon said the market’s appetite for traditional products like endowment and life remains strong.
Likewise, the strong reliance on its sales agency force, which markets traditional products, resulted in recurring businesses complementing first year premiums.
Insular Life executive vice president Jesus Alfonso Hofilena added that they are tapping bancassurance and direct marketing as alternative forms of distribution.
“We will rely principally on our strong agency force,” Hofilena said, adding that they have also introduced traditional payment scheme for its bancassurance aide from the single pay premiums.
Bancassurance allows insurance companies to sell their products through the branch network of commercial banks. Single pay premiums are the more popular bancassurance products.
Insular Life officials said in times of crisis, the public tends to shy away from investment products while looking for protection. This was reflected by its 2008 low output and its more aggressive first year premiums in the first semester of 2009.
“They want to be assured of the basic life protection, that is the reason for the strong demand for the protection and savings insurance products,” Ayllon noted.
Insular Life remained in the top five best performers among the 32 players in the country’s life insurance industry. It ranked fourth in 2007, and improved to third overall in 2008.