MANILA, Philippines - Total sales of the country’s pre-need companies fell 45 percent in the 11 months ending November 2009 to P7.7 billion, according to latest data released by the Securities and Exchange Commission’s Non-Traditional Securities Department.
The number of plans sold went down 35.45 percent to 147,804 from 228,985 with pension plans posting the biggest decline of 59.9 percent, followed by life plans.
Sales of pension plans plunged to P2.74 billion from P6.7 billion a year earlier as the number of units sold slid 59.9 percent to 24,846 from 61,984.
Life plans registered sales of P4.19 billion, 25.75 percent lower than the previous level of P5.65 billion. The industry sold a total of 115,756 life plans, down 26.39 percent from the year ago figure.
Total sales of education plans fell 54.07 percent to P763.37 million as the number of plans sold went down 26.1 percent to 7,202.
Initial collections, the first payment made by the planholder upon purchase of a plan depending on his or her mode of payment, amounted to P748.81 million, down 47.2 percent from P1.42 billion.
The pre-need industry forecasts better times ahead with the passage of the Pre-Need Code of the Philippines into law.
The Pre-Need Code, which transfers the regulatory jurisdiction over pre-need firms from the SEC to the Insurance Commission, lays down the guidelines for the operations of pre-need companies and the sanctions that will be imposed for any violations that may be committed. It aims to protect planholders and ensure the viability of an industry that has been weakened by a spate of bankruptcies and failures.