New York Life eyes spot among top 10 insurers

New York Life Insurance (Philippines) Inc. (New York Life) is eyeing a slot among the top 10 life insurance companies in the Philippines within the next five years via a multi-dimension distribution strategy.

New York Life, with an initial capital base of P450 million, is a subsidiary of global insurer New York Life International.

"We are not eyeing the top five slots in that short time especially with such stalwarts as the Philippine American Life General Insurance Co. (Philamlife), Sun Life of Canada, and the Manufacturers Life Insurance Company Philippines Inc. (Manulife Philippines)," New York Life president and chief executive officer George B. May said.

However, May feels that with their multi-dimensional distribution strategy, achieving a spot with the next five top players was doable. "I am an incurable optimist."

In an interview, the New York Life chief executive said that they are looking at a P100-million first-year premiums this year. The life insurer has been in operation for the past 17 months.

The five-point distribution strategy is composed of (a) its aggressive sales force numbering over 500, (b) strategic alliance, (c) a network of sales agents, (d) work-site marketing, and (e) other channels.

The Philippines has a population of more than 70 million where only three million policies have been sold. In Taiwan, 26 million policies are in force in a population of 17 million.

May said that there is a huge potential in the Philippine market, which has a reported liquidity of P3.9 billion in terms of income earned. "With this in mind, our goal is to increase penetration, and to reach every Filipino in the country," he added.

Just recently, the insurer has been holding talks with Allied Bank, which should result in bancassurance. Bancassurance, or the fusion of banking and insurance activities, would allow New York Life to sell its products through Allied Bank. The bank has a branch network of 400 nationwide.

The strategic alliance between New York Like and Allied Bank however will have to wait until the Bangko Sentral ng Pilipinas (BSP) issues the corresponding implementing circular.

Meanwhile, the US-based insurer revealed that it has worked out a "manufacturer-distributor" relationship with CAP Life, a member of the College Assurance Plans (CAP) group of companies. The relationship is actually part of the "other channels" portion of the multi-dimensional distribution strategy.

The scheme allows the CAP Life sales force to sell life insurance products of New York Life, thus the "manufacturer" is New York Life while the "distributor" is CAP Life.

The CAP Life sales force places special attention to New York Life’s new products which is not present in the former’s sales portfolio.

Thomas F. Flournoy, New York Life International chief of international agency operations said in an earlier interview that they have introduced the work-site marketing scheme. "We have also launched our work-site marketing offensive and we likewise forged an alliance with a leading pre-need company," Flournoy said.

The scheme differs from group insurance in that New York Life sells individual policies rather than group coverage. The insurer works up a deal with an employer of a particular company allowing direct selling to the employees.

In the event that a particular employee leaves the company, that employee can continue the insurance policy.

"We will of course continue to sell group insurance polices and individual policies as part of our traditional insurance marketing program," the insurance official pointed out.