Business as usual

At a recent gathering of billionaires in a posh Makati home, politics and the May 9 presidential elections didn’t really dominate the conversations, say those who joined the party.

Some talked about Russia’s ongoing war against Ukraine, the skyrocketing oil prices, and what may be the start of a super cycle in commodities.

But surprisingly, there was no talk about who the country’s next president might be or who they wished it would or wouldn’t be.

Maybe my sources were late to the party and missed out on the political talk, but perhaps it could also be because they feel they have nothing to worry about, if they are worried at all, about the upcoming election.

For one, I heard that Marcos Jr., the strongest candidate according to surveys, has been meeting with the country’s top tycoons to assure them that they have nothing to worry about if he wins.

“It’s going to be business as usual,” was what Marcos Jr. promised, say some of the businessmen who sat down with him in recent months.

It’s not clear if by ‘business as usual,’ the son of the late dictator meant the business environment would be similar to that of his father’s time or if he was referring to the post-1986 business environment.

Marcos Jr. has also been saying that he already has an economic team in mind that would make the business environment friendly.

Who might be in this team if he wins? We’re hearing that a former Cabinet official during former president Gloria Macapagal-Arroyo’s time may be appointed as Bangko Sentral ng Pilipinas governor when Governor Benjamin Diokno’s term ends in July 2023. We’re also hearing that a lawmaker who is in the same political party that produced an Arroyo presidency, is eyeing the position of Finance secretary, although the technocrats prefer one of Arroyo’s former Finance undersecretaries to be Finance chief if Marcos Jr. makes it to Malacanang. Even an old member of Marcos Sr.’s government might make a comeback, some sources said, but in what capacity, it’s not yet clear.

Indeed, nothing is clear yet and the names floating in the business grapevine are as jaw-dropping and as hilarious, as they are varied.

As for the tycoons, we all know they support all the presidential aspirants to ensure their survival in the next administration, never putting their eggs in one basket, and usually opting not to endorse or back a single candidate, never mind that their wives or children choose to do otherwise.

There are still 42 days until the May 9 polls.

Businessmen, I hope, are making the right bets. I hope they give their bigger support to candidates who can ensure the economy’s recovery, who will make sure there will be more jobs for Filipinos, and one who will not put the Philippines into bankruptcy. This will ensure not just their survival, but also the country’s future.

Plan B

Speaking of the future, I recently listened to BDO Life president and CEO Renato Vergel De Dios talk about having a Plan B.

The company, which is the wholly owned insurance arm of BDO Unibank, saw many individuals filing claims during the pandemic.

The pandemic, De Dios said during a recent press conference, became a rude awakening of sorts for many, with regards to mortality.

“All of a sudden we would see our friends dropping like flies, especially in early 2021 when the Alpha variant came in...All of a sudden, people were jolted to the fact it could happen – that you could die just like that,” De Dios said.

Thus, he said, people started to realize the importance of getting life insurance. He believes the trend will continue, as what is happening in the US.

I did a quick research on insurance purchases in the US and I learned that the industry is also seeing a spike there.

According to Connecticut-headquartered LIMRA, a life insurance research organization, the COVID-19 pandemic raised consumer awareness and demand for life insurance protection in its recent fourth-quarter US survey released March 16.

“Three in 10 Americans tell us they are more likely to purchase coverage due to COVID-19,” it said.

In the Philippines, we may also see this trend.

BDO Life’s De Dios said the pandemic made Filipinos realize that we should all have a Plan B, which he said can be in the form of life insurance.

“Our Plan A includes our income, savings, and investments. This means income whether from a salary or a business. We use Plan A to succeed, to build wealth, and maintain a good standard of living,” he said.

The problem is, he said, Plan A doesn’t work indefinitely. An unexpected death of the family breadwinner can demolish the gains acquired by one’s Plan A.

The results of this can be devastating, De Dios said.

“Without a Plan B, children may need to move to a less expensive school. If the house isn’t fully paid for, there’s a risk of losing it,” he said.

It is perhaps the reason why many are considering life insurance now.

But I also hope that aside from private insurance providers, our government pension funds would also strengthen the life and health insurance coverage for their respective members, especially because many Filipinos still cannot afford a private life insurance purchase.

Iris Gonzales’ email address is [email protected]. Follow her on Twitter @eyesgonzales. Column archives at eyesgonzales.com.