By Joann Santiago
MANILA, Feb. 13 (PNA) — Net income of the Philippines’ life insurance industry further expanded in 2014 as more Filipinos realize the importance of having peace of mind during unexpected times.
Insurance Commissioner Emmanuel F. Dooc, in his speech during the induction of the 2015 Philippine Life Insurance Association, Inc. (PLIA) officers in Makati City Friday, said preliminary IC data shows that the life insurance industry posted a net income of Php 14.8 billion in 2014, up from year-ago’s Php 13.8 billion.
This was due to the increase in policies issued last year totalling 4.73 million from year-ago’s 4.23 million.
Also, total assets grew by 15.81 percent to Php 855 billion from year-ago’s Php 738.5 billion.
Total investments also went up after reaching Php 802.7 billion from year-ago’s Php 733.19 billion.
Benefit payments also increased to Php 57.4 billion from year-ago’s Php 49.85 billion.
On the other hand, total premiums fell by 7.81 percent to Php 157.83 billion from year-ago’s Php 171 billion.
In 2014, total number of life insurance policies reached 4.07 billion while total number of insured lives reached 19.16 million. The number of insured lives are higher than the policies since there are policies that pertains to groups not just individuals.
For 2015, Dooc remains optimistic on the sustained growth of the industry, partly with the help of microinsurance.
”We should be doing better( this year) because more or less some of the issues before like the capitalization have been settled,” he told PNA in an interview.
The Department of Finance (DOF) already came out with a Department Order (DO), DO 15-1212, requiring insurance companies to have a Php 1 billion capitalization by 2020, higher than the Php 250 million previously.
This rule mandates insurance companies to increase their paid up capital to Php 400 million by 2014 and an increment of Php 100 million annually until it hits Php 1 billion in 2020.
The DOF also mandated reinsurers, or companies that insure other insurance companies, to have a Php 2 billion capital by 2020 while microinsurance companies need to have a minimum capital of Php 500 million.
Meanwhile, the PLIA officers who were inducted Friday was led by Estelito Madrid Jr., Interim President and Chief Executive Officer (CEO) of Philippine American Life and General Insurance Company (Philam Life), as president.
Sun Life of Canada Philippines, Inc. (SLOCPI) President and CEO Rizalina Mantaring is PLIA’s current vice president, Beneficial Life EVP and COO Jaime Fernandez is the Treasurer, and United Life SVP and COO Benjamin Lim is the secretary.
The Directors of the Board are namely Evely Carada, Fortune Life SVP and General Manager; Manulife’s President and CEO Ryan Charland; Philippine Inter Life President Jose Lee; Philippine Prudential Life President and CEO Gregorio Mercado; and Manulife-Chinabank President and CEO Robert David Wyld. (PNA)