Source : Insurance Commission

The Insurance Commission has released its report on the performance of life insurance companies as to New Premiums. The list includes First year premiums or FYP plus all Single Pay Premiums. FYP indicates the amount of new life insurance sold for a particular year and life insurance companies make sure that there is a steady flow of new business coming in their books to ensure their viability, market share and ultimately, profitability.

The Insurance Commission reports combined all new premiums, FYP & Single Pay into one report. Single pay premium are life insurance policies that require no further payment of premiums and are already fully paid. Customarily, many companies report single pay premiums only at 10% in their books and I believe the Insurance Commission should do so as well.

You will notice that 11 out of the top 15 companies sell a lot of Variable Insurance, this are insurance policies that have investment funds attached to it. Bulk of the premiums being brought in the form of variable insurance. In principle, variable insurance premiums are largely investment funds and in the strictest sense, not really insurance premiums… but let’s leave that with the Insurance Commission. Some refer to variable insurance as Unit-Linked or VUL. Further, insurance companies with Bank partners under a Bancassurance arrangement are getting a big pie of the share of premiums. In fact, a substantial amount of new premiums being generated for the past couple of years are coming from Bancassurance and through the sale of variable insurance.

Some tidbits that might be interesting enough to mention. Sun Life shows impressive performance even without a Bancassurance partner although they have recently bought half of Grepalife so one can be assured that their numbers will change next year. Insular Life is the only purely Filipino company in the top 5 category. Prulife is registering phenomenal growth in the new business arena largely through the sale of variable insurance. Philamlife’s agency operations tries to remain strong and continues to perform despite challenges. Generali Pilipinas, despite having a strong banking partner, BDO slips in the new business race with their decision to discontinue selling single pay premiums.

With the obvious growth of Bancassurance, what is the future of tied-agencies (exclusive agents of companies)? Seems there must be some re-learning, re-training and re-engineering that needs to be done for tied agencies if they are to survive the onslaught of changes. Personally, I believe the role of tied-agencies is very critical to the sustainable growth of the life insurance industry — agents can do better financial planning and can maintain stronger relationship with clients so I’m really rooting for them. But, both Bancassurance and tied-agency system can work together and provide financial security for Filipinos.

Off hand, I think the life insurance industry is doing a good job of providing financial security to Filipinos, such a herculean task. My only concern is scale — reports shows that way below 1/5th of the family heads of the country has some form of insurance. Growth in premiums may not necessarily mean more people are being insured. Any growth in new lives being insured is dwarfed by the increase in population.

My dream for this institution, and to all the other financial institution is this : sell less, and educate more — and the business will just flow.

My 2 cents.

The 2010 Top Life Insurance in total Premiums are here https://www.randelltiongson.com/top-life-insurance-of-2010-my-thoughts/

Today, my wife and I honor a very important lady that God blessed us with… our former boss, Ms. Amy Reyes.

About 17 years ago, my wife and I met Amy and she became one of our clients for our business (interior design/construction/furniture). As our project with her evolves, she started giving us good advise because she was a Certified Public Accountant and a Unit Manager in Sun Life then. She was able to convince me and my wife to try the insurance industry as a means to augment our falling income from a business that is draining us financially. After many months of trying to make our business work, I distinctly remember her talking to us about making a decision to close the business before it becomes worse than it already is. At that time, I really wanted for that business to work but she prevailed on me by making very logical arguments that were really financially sound.

Amy mentored me in many ways. From everything in the life insurance business to managing people,  leadership and her ideal professional ethics. When I was so engulfed in the business of making money out of selling insurance, she would gently remind me and say “Randell, mission first before commission”. Amy was also one of the very first persons who believed in me and started to trust me and always encouraging me. As a brash young adult then, it was a blessing having a seasoned mentor who would remind you to stay the course and not be drunk with whatever success you are presently experiencing. When the tides were low, she was always there encouraging me and my wife and helping us not lose hope.

Amy made us believe that we can be more than what we ever thought we can be. Always challenging us to take lead and doing better than what we have already accomplished. She not only ‘managed’ me, she c0-labored with me in many things that I had to do.

When the time came and our professional paths needed to go on different ways, she gave me her blessings and I knew she was praying for my successes in the new road I had to take.

Today, we remain to be dear friends and I am so happy to see how she has been growing financially, professionally and spiritually. She will always be our Tita Amy, a mentor, a co-worker, an adviser, a role model and a dear friend. Amy, we will not be where we are had the Lord did not put you in our lives.

Happy Birthday dear friend. We pray that Christ will always be in the center of your life. We love you!