Thursday, October 12, 2006 Industry group advises Pinoys to get insured
WHILE there are many insurance companies in the country, only 15 percent of Filipinos are covered by life insurance, an official of the Commission on Insurance said yesterday.
Commission on Insurance Director Cesar Olaer Jr. said the percentage of the country’s population who are insured is “very low” compared to those in neighboring Asian countries, such as Japan, Hong Kong and Singapore where 90 to 99 percent of their population are covered by insurance policies.
“(Some) Filipinos can’t even provide a decent burial for their family members since they have not prepared themselves financially by getting insurance policies,” he said.
He said despite the efforts of insurance companies to develop policies that are affordable to low-income individuals, only a few have taken advantage of its benefits.
“It’s a misconception that you only buy an insurance plan when you’re getting older or when you’re sickly. It is best to invest as much as you can while you’re young and healthy because the younger you are, the cheaper the premium you pay,” said Life Underwriters Association of the Philippines (Luap)- Cebu president Jesus Esma.
Luap-Cebu treasurer Constance Te said an individual could have as much as 10 policies each.
Esma is encouraging the younger generation, especially fresh college graduates, to obtain insurance policies as a form of investment.
“For as low as P3,000 per year, they can already be covered,” he said.
“Cebuanos need to understand that by getting insurance policies, it’s their life they are protecting,” he added.
He said Luap-Cebu is “aggressively” campaigning to increase awareness about insurance and its benefits.
“Our goal is to have 40 percent of Filipinos insured by 2010,” he said.
Luap-Cebu past chairman Amor Tomakin said the realization of such goal will greatly depend on the services provided by insurance underwriters.
“These people are out there to help you plan your finances efficiently so I suggest you devote more time to also listen to them,” Tomakin said.
Olaer, however, is advising Cebuanos to be vigilant against “fake” underwriters.
“Do not deal with agents who are not licensed to sell insurance to protect your money,” he said.
Potential policyholders should always verify the agent’s name and cellphone number before engaging in any transaction.
The Philippines has a total of 31 life insurance companies and 94 non-life insurance companies. Cebu’s has 2,000 active insurance underwriters.
Olaer, Esma, Tomakin and Te spoke during a Philippine Information Agency Kapihan forum at the Cebu City Sports Club. (MMM)
