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Friday, September 22, 2006
Nothing wrong with pre-need industry in RP: Philam Plans
Pre-need company Philam Plans has committed itself to become the “solution” of the pre-need sector’s problem on dwindling confidence of the Filipinos on the industry.
“There is a need for a pre-need industry in the Philippines. The industry is very relevant because Filipinos need our products, especially the educational plans, and the industry is addressing the need to save for education,” said Philam Plans newly installed president and chief executive officer Jack Howell.
“There is nothing wrong with the industry in the Philippines. It’s just that some members were not able to meet their obligations,” he told a press conference at the Casino Espanol de Cebu last Wednesday.
The American International Group (AIG) has asked Howell to bring his financial expertise and wide management background to the Philippines after the crisis, brought about by the failure of pre-need companies College Assurance Plan and Pacific Plans to pay their obligations to plan-holders, struck the pre-need industry last year.
Philam Plans is a member of the AIG.
Howell said Philam Plans has challenged itself not to be affected by the crisis and rebuild the confidence of the market on the industry by increasing their trust fund, the fund set aside by a pre-need or insurance company to be used for payment of obligations.
Rolando Gaerlan, Philam Plans senior vice president, said the company’s P20.6 billion trust fund as of 2006 is enough to pay all its obligations until 2013, if these obligations were to be paid today.
The fund is also liquid, as these are invested in secure and short-term investments such as government securities and commercial papers. (JBN)
For Bisaya stories from Cebu. Click here. (September 22, 2006 issue)
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