Insular Life sees hike in premiums due to strong insurance demand

The Insular Life Assurance Co. Ltd. expects a single-digit increase in insurance payment collections this year, citing strong demand for its basic insurance products, especially during times of crisis. The country’s largest Filipino-owned life insurer expects premiums to grow anywhere by eight to 10 percent, reversing the 34 percent plunge experienced by the industry last year. "During crisis, people do not risk their money on speculative instruments with high risk. They want to be assured of the basic life protection. That is the reason for the strong demand for the protection and savings insurance products," Vicente R. Ayllon, Insular’s chairman and chief executive said during the company-sponsored economic briefing. For the first semseter, the life insurer generated 36 percent more in first year premiums, which falls due during the first year of the insurance policy. This was owed to robust performance of traditional life insurance products that offer basic life insurance protection and saving schemes with short premium payment periods. “I look forward to another steady climb in performance as the financial market and economic conditions improve," Ayllon said. “Insular life will definitely ride on this improving economy to boost its revenues." The company, which will turn 100 years old in 2010, credits its longevity to conservative and fundamentally sound investment policies, firm underwriting guidelines and strong actuarial basis," he said. Close to 60 percent are in fixed income securities, risk-free government bonds, term loans to prime corporations, and short-term investments. "This is all part of the high level of risk management policy that we employ to safeguard, first and foremost, the interest of our policyholders. I believe that this is the reason why generations of Filipinos continue to put their trust in our institution," he said. - GMANews.TV