Concepcion sets visions for pre-need industry reforms

MANILA, Philippines - Value-adding.

Loyola Plans Consolidated Inc. president and COO Christopher Concepcion mentions this business term several times during the interview, making illustrations and sharing anecdotes, stressing that this is the way to strengthen the pre-need industry.

The relatively new head of one of the largest pre-need companies in the country, who is also the newly-inducted president of the Philippine Federation of Pre-Need Plan Companies, envisions a pre-need industry that can service the needs of planholders with increased assurance, comfort and returns while keeping companies strong.

Forty- six year-old Concepcion, affectionately called Joff, holds an MBA degree from Stanford University.

The pre-need industry is currently in the middle of what Concepcion calls a “re-engineering of operations” by adding new service assets  like schools and funeral chapels to lower the cost of providing benefits to planholders and make the servicing of claims easier.

“The Federation is going to work on creating additional value for policy holders because interest rates are down so they have to make up for decreasing yields through efficiency in their organization,” Concepcion says. “Some of them have already been buying schools and building more chapels.You’ll see a trend wherein pre-need companies bring down the cost of providing benefits for customers.”

Since assuming the presidency of Loyola Plans in April 2012, Concepcion has had his hands full. First, with the expansion of the company’s columbary and service network and the submission of its bid to take over the memorial and pension plans of a pre-need firm that was placed under receivership last year. Concepcion says Loyola Plans intends to acquire this company’s P2.8 billion life trust and P3.5 billion of pension trust.

“There were so many people who put their trust and their savings in this company and we believe that we can create value for their life plan portfolio. We actually bid on the life and pension plan. Because for the memorial plans , we have our network of chapels and our network of funeral chapel partners throughout the country so we can easily service our plan holders and create value for them,” he says. 

Loyola Plans also completed last year a new columbarium along Commonwealth Avenue in Quezon City which houses 15 service chapels and 3,000 columbary vaults. The facility also has an embalming room, cremation machine and underground parking for at least 100 cars.

In early 2014, a new columbarium will rise in Sucat.The new facility, which is currently in the design stage, will have three presidential chapels and eight smaller chapels within the same area. 

Loyola Plans now has six company-owned chapels and more than 400 accredited memorial chapels nationwide.

This year, Loyola Plans will also be aggressively promoting its new micro insurance program called Bantay Bahay, Bantay Kotse, Bantay Motor that provides coverage of up to P50,000 for a contribution of P100 per month.

The insurance program provides coverage in times of natural disasters to enable victims to “immediately bounce back.”

“So the first year (of my presidency) has been one of making difficult decisions and re-engineering the company. It is very, very interesting how the Lord inspires you. It is not clear to you at the start, but a bit later, everything falls into place. The Lord will give you so many inspiration and ideas that you never thought possible,” says Concepcion.

But Concepcion has an even bigger vision for the company that can possibly change the way Filipinos view professional care for their elderly loved ones. 

“I wouldn’t call it retirement homes but senior-oriented housing. It’s something that we will be doing, probably in a year’s time,” he says.”We have a large land bank and we want to improve the lives of our seasoned citizens.”

These homes would be designed to provide leisure, entertainment and comfort to the elderly while giving them the opportunity to socialize.

“In our society, we can say that we do not neglect the elderly but they usually just stay in the house and they are bored doing nothing. They get treated like furniture sometimes,” says Concepcion. 

The design of the homes would also be mindful of the usual physical disabilities and discomfort experienced by the elderly. Basic fixtures such as stairs, door knobs, and bathroom fixtures will be designed for ease of movement. 

“In truth, some of these retirees want to actually live in a community with their friends. They enjoy that. So the retirement is not really a way of putting old people away. It is a way of building a community. I think developers are already moving in that direction,” says Concepcion.

The company is considering a beachfront property in Munting Buhangin in Batangas; Caleruega in Batangas; and Mactan in Cebu as possible sites for the senior-oriented homes.