Charter Ping An sees 19% higher premiums

MANILA, Philippines – Charter Ping An Insurance Corp. expects its net premiums written (NPW) to expand almost 19 percent to P2.26 billion this year from P1.9 billion in 2014.

Last year, the non-life insurance firm of the Metrobank Group was ranked fourth overall in both premiums earned and NPW, and fifth in terms of gross premiums written (GPW). The country’s non-life sector numbered 69 players in 2014.

In terms of GPW, a modest growth of a little over four percent is anticipated this year to P4.17 billion from the P4 billion in 2014.

From payouts and expenses reaching P1.32 billion in 2013, it ballooned to P2.89 billion due to the large number of natural and man-made disasters.

At the end of November this year, it was reduced to P2.1 billion.

Charter Ping An has nine non-life insurance lines, including fire, marine cargo, marine hull, motor car, bonds, personal accident (PA), engineering, overseas Filipino workers-specific, and other casualty.

Leading product lines are fire and property, and motor car lines account for more than half of total premiums.

Fire grew from P1.3 billion in 2013 to P1.57 billion last year to an estimated P1.54 billion this year.

Motor expanded 22.5 percent so far this year to P1.34 billion from the little over P1 billion in 2014.

PA grew over 30 percent to P209 million in end-November this year, from the P160 million last year, and P101 million in 2013.

Modest gains were noted in all the rest of the lines as the non-life insurer and the rest of the industry struggled to increase protection awareness among the population.

“The problem is financial and protection awareness or literacy among the population,” Melecio C. Mallillin, Charter Ping An president, said.

Majority of its accounts are corporate and large accounts with individual clients coming from PAs.

Residential or homeowners continue to avoid taking fire and property insurance.

Natural catastrophes due to climate change and the El Nino weather phenomenon continue to worsen.

Last year, typhoons alone took the lives of 116 individuals, affecting 3.8 million people, and caused damage to property amounting to P18 billion, according to the National Disaster Risk Reduction and Management Council (NDRRMC).

So far, a total of 14 typhoons struck the Philippines. Typhoon Lando claimed 48 lives while Typhoon Nona accounted for 42.

Tyhoon Nona alone was responsible for P6.46 billion in damage to infrastructure and agriculture.

“The frequency, volume, unpredictability and strengths of the natural catastrophes are expected to get worse, rather than get better,” the insurance executive said.

The Philippines is one of the countries most vulnerable to natural disasters because of its geographic location.

An average of 20 typhoons, five to seven of which are destructive, visit the country every year.