MANILA, Philippines - The Philippine Prudential Life Insurance Co. (Prudential Life) is aggressively expanding its reach in anticipation of the country’s economic recovery.
The life insurer will be expanding its regional offices by another three thus reaching the 10 offices by the end of 2010. The existing centers can be found inside the SM malls located in North EDSA, Megamall, Fairview, Southville, San Fernando, Pampanga, Cebu and Iloilo.
The three new offices will be located also in shopping malls aside from the SM malls.
Aside from physical presence, Prudential Life is increasing its direct marketing capabilities by expanding the number of seats of its call centers. It will increase the present 50 seats to 140 by the end of the first semester of 2010.
Prudential Life president and chief executive officer Gregorio D. Mercado said that the direct marketing expansion program will not only deal in product and policy inquiry.
“We will be empowering our direct marketers to making appointments will existing and new clients,” Mercado said.
Earlier, Prudential Life moved into its new executive and call center offices in the Ortigas area as part of its strategic expansion program.
Last year, its premium income grew by 42 percent or from P491 million to P684 million. Premiums stood at a mere P221 million in 2007.
In the same period, it expanded its reserves to P282 million from just P229 million to ensure its capability to meet future claims.
Investments last year expanded to P10.2 million from P9 million before, while claims paid amounted to P82 million.
Total assets stood at P554 million from just P482 million in 2008.
It has entered into alliances with rural banks and other institutions through its unique credit mortgage insurance and mortgage redemption insurance programs.
“Prudential Life is growing by an average 1,000 policies per month,” Mercado said.
The country’s life insurance industry is forecast to have grown by low single digits in 2009. The official figures have yet to be released.
After achieving a record P76 billion in 2007, it fell to P57 billion the following year weighed down primarily by to the global economic crisis.
Mercado believes that the industry improved slightly last year as insurers started shifting from the investment-laced products to the traditional insurance products. “The market was hurt by the decline in its investment products due to the poor economic and investment environment,” he said.
Aside from the investment-laced products, a large number of insurers withdrew their single or one-time pay products to the more flexible tiered payment scheme.
The Prudential Life chief executive however believes that if 2009 may have recorded the lowest growth rate for the industry, 2010 may see a significant recovery of the industry.
Aside from the strong forecast growth of the economy, insurers are also banking on the reduction of the five-percent premium tax on life policies, aside from a reduced documentary stamp tax (DST).
A proposed law that reduces the premium tax and DST is due for signing into law, after the Department of Finance (DOF) withdrew its disagreement with the proposed legislation.
Sources said that the only condition sought by the Finance Department was the removal of the sunset provision. The said provision in the proposed law removes all forms of taxes after 2015 when the ASEAN Free Trade Agreement (AFTA) goes into force.
It has since been stricken of the said proposed legislation. – Ted Torres