FINANCE Secretary Carlos Dominguez III has called on the insurance industry to be a major player in the government’s high–and inclusive–growth strategy by investing in the Duterte administration’s infrastructure modernization program.
The Insurance Commission (IC) is now working on the circular setting the framework for these investments in infrastructure, which, “from a risk management standpoint, diversifies the insurance industry’s profit-making ventures that are mainly concentrated in accumulating real estate assets,” Dominguez said.
“I urge you to more closely review the investment opportunities opened by the infrastructure program and making a conscious effort to participate. It not only makes sound business sense to do so. It is also a patriotic thing to do,” Dominguez told leaders of the insurance industry during the 68th anniversary celebration of the Philippine Life Insurance Association, Inc. (PLIA) held recently in Makati City.
Aside from investing in the government’s infrastructure program dubbed the “Build, Build, Build,” Dominguez also challenged industry players to come up with new products that will encourage more Filipinos to avail themselves of insurance coverage.
He cited 2017 data from the IC showing that around half of the population are insured through traditional life insurance and mutual benefit associations while the rest “are left vulnerable to the uncertainties of life.”
“There should be a way for the insurance industry to design products that will broaden the base of life insurance coverage. That will be a service to our people,” Dominguez said.” Dominguez described 2017 as a “banner year” for the insurance industry, with its assets rising to an all-time high of P1.56 trillion, of which P1.26 trillion or 81 percent is held by the life insurance sector.
He said that IC Commissioner Dennis Funa informed him that the industry is set to surpass its 2017 feat through another record-breaking accomplishment this year.
“I take that to be both good news and bad. It suggests that there is too much headroom for expansion in the non-life sector, where insurance coverage will help our enterprises better manage risks,” Dominguez said.
He said that with much headroom for the industry to grow, life insurance companies will sustain the healthy rate of growth it has achieved in the last few years.
“You have the wind in your sails,” he told life insurers gathered at the event. “The Philippine economy is growing at a faster rate. It is a growth that is robust and sustainable. The insurance industry will yet be another ship that rises with the tide.”
Dominguez said the Duterte administration also aims to create a business-friendly environment conducive to investments by, among others, implementing the new Ease of Doing Business Law that will further reduce red tape and simplify business registration. (PR)