Insular Life eyes hike in new biz premiums

MANILA, Philippines - Insular Life, the largest Filipino life insurance company, is eyeing to increase its new business premiums by double digit this year, a top official said.

Insular Life president and COO Mayo Jose Ongsingco told reporters over the weekend that they are optimistic that their premiums level would be maintained within industry’s range.

“(We are eyeing) twin digits, around mid-teens. Industry is projected to grow by around 20 percent so we will try to be around that level,” he said.

Ongsingco said the company tries to reach a higher growth target every year.

“As usual every year we target a higher rate,” he said.

The insurance firm official said they would continue to introduce new products this year to increase sales.

“(We) are coming up with new products where at the same time you have a certain degree of upside for customers,” he said. “This year, we will roll out a mix of products.”

“Early this year, we rolled out a fixed endowment product,” he added.

He said they are focusing on high value products to boost their sales.

“Investment linked products are bulk of the sales as it gets to be an attractive investment market,” he said.

At present, the company’s sales are composed of 75 percent valuable universal life (VUL) and 25 percent traditional products.

VUL is being referred to as a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to the contract owner. 

In contrast to VUL, a traditional insurance, it is normally purchased by an employer for its employees. With this type of insurance plan, the client get to choose a pre-made plan with a state-approved, predetermined rate structure. The liability is limited to paying the premiums.