With one global crisis after another, we live in times that are uncertain and hard to predict. Insurance is now more critical than ever in this century for protecting all that is important.
It is, therefore, great news that AXA Philippines has finally completed a merger with its former general insurance subsidiary (Charter Ping An), allowing the global leader to offer both life and non-life insurance products under one recognized global brand, making vital insurance protection more accessible than ever to more Filipinos.
Fortunately, Filipinos’ perceptions of insurance have improved.
Filipinos are becoming increasingly aware of the need to invest in insurance to ensure their future. This had to happen sooner rather than later since, aside from the problem of rapid inflation, life in general, and life in the Philippines in particular, is fraught with uncertainty.
With an average of 20 typhoons a year, five of which do a lot of damage, and a bad location in the Pacific Ring of Fire, we are statistically the most likely country in the world to be hit by a natural disaster.
Pre-pandemic city traffic is nearly restored, and traffic accidents are rising.
While COVID-19 was still an issue for much of the world in September 2021, insurance penetration in the Philippines reached a record 2.3% of the nation’s GDP, with Filipinos spending an average of 26% more on insurance, according to the Philippine Life Insurance Association. However, we are still far behind much of the rest of the globe.
“The rapid digitalization of many insurance services that the recent pandemic made necessary has helped the industry grow, but too many Filipinos are still one crisis away from poverty,” said Nandy Villar, Chief Marketing Officer of AXA Philippines.
According to the website BIS.org, the global insurance penetration average in 2017 was 6.1%, with the Asian average being 5.6% and the ASEAN average being a very low 3.6%. Even with penetration in the Philippines at an all-time high, the country is underinsured. The fundamental cause, according to the Insurance Commission (IC), is a lack of financial literacy.
In a recent forum, Insurance Commission Deputy Commissioner Ferdinand George “Bong” Florendo quoted a September 2022 Worldbank report indicating that only 25% of Filipinos are financially literate, compared to 36% in Malaysia and 59% in Singapore.
“At AXA we take pride in our role not just as insurers, but also as financial advisors. Because there are so many things in life that need to be protected, many find investing in insurance daunting. That is why we have a pool of trained and qualified financial advisors to help customers make the best choices for their needs and budgets. Most people understand the fundamental need for insurance, but our financial advisors are here to be your partner towards financial freedom,” Villar emphasizes.
The key to getting the proper insurance to protect what matters is excellent guidance, which AXA Philippines is ready and prepared to deliver, along with every type of insurance to help you protect what matters. Every individual’s insurance needs are unique, and they alter over time, with age, and with changes in circumstances.
AXA Philippines is the only name you need to remember for a full expert financial needs assessment. Visit https://www.axa.com.ph/ to learn more about how to effectively address your insurance needs.