Philam Plans, Prudentialife Plans dominate pre-need industry

After five months into 2003, the top 10 pre-need companies accounted for almost 85 percent of the total plans sold.

Of the total 223,411 plans sold, the top 10 players accounted for 164,345 plans. Total value of the plans sold amounted to P13.1 billion of which the top 10 players was responsible for almost P11 billion.

Based on data lifted from the Securities and Exchange Commission (SEC), the top 10 players are Philam Plans Inc., Prudentialife Plans Inc., College Assurance Plans Inc. (CAP), Pacific Plans Inc., Loyola Plans Inc., Berkley International Corp., Eternal Education Plans Inc., Manulife Education and Pension Plans, Platinum Plans, and TPG Corporation.

Philam Plans dominated the field of a little over 40 players accounting to P2.7-billion worth of plans reaching 20,194. That was good enough to bag a market share of 20.54 percent of the total pie.

Prudentialife Plans sold 32,360 plans worth P2.4 billion for a market share of 18.33 percent followed by CAP with 37,466 worth P1.68 billion.

Pacific Plans sold 16,438 worth billion, which was good enough to land fourth overall for a market share of 7.82 percent.

The rest of the field were: Loyola Plans (P965 million, 7.35 percent); Berkley (P773 million, 5.88 percent); Eternal Plans (P491 million, 3.74 percent), Manulife Plans (P364 million, 2.77 percent); Platinum Plans (P353 million, 2.69 percent), and TPG Corp. (P325 million, 2.48 percent).

In terms of products type, Prudentialife Plans was tops in both the education and life (memorial) category while Philam Plans was the leader in the pension category.

Pension plans sold amounted to P6.4 billion while education plans was worth P5.5 billion. Life plans sold reached roughly P1.2 billion in the first five months of the year. Outside of the top 10 players in terms of total plans sold, other profitable pre-need companies, which figured in the top 10 in different product categories, are PET Plans, Sunlife Plans, St. Peter Life Plans, Himlayan Pilipino, and Provident Plans.

Industry leaders predicted that the pre-need industry would consolidate further as the Philippine economy remains weak. Likewise, stiffer regulations would force weaker players to drop out while the stronger players would continue to extend their influence further.

Sometime in the mid to late Œ90s, players in the pre-need industry almost broke the century mark.

However, poor economic and investment conditions plus new protective regulations started a process of elimination resulting in a reduction to just 42 at the end of 2002.

Several bills are pending in Congress which seeks to transfer the industry from the regulatory mandate of the Securities and Exchange Commission (SEC) to the Insurance Commission. It likewise introduces new regulations ensuring sufficient reserves or trust funds to ensure the industry‚s ability to service its client base as well as ensure the viability of the industry. – TPT