Loyola eyes 25% share of memorial market

MANILA, Philippines - Loyola Plans Consolidated Inc. is set to unleash an aggressive expansion program this year that will involve more memorial chapels, mortuary partners, franchise holders and new memorial or life products.

The program is designed to capture 25 percent of the life or memorial business market by 2015.

Loyola president Christopher P. Concepcion said conditions are ripe for positive growth, due to the country’s strong economic fundaments, steady rise of interest rates, and the improved regulatory environment set by the Insurance Commission (IC).

Loyola is a pre-need company specializing in life plans, although it continues to service its maturing education and pension plans. It has temporarily ceased to sell such plans.

The IC is the regulatory agency overseeing the development of the pre-need industry after it was turned over by the Securities and Exchange Commission (SEC). The commission also regulates the insurance industry and is poised to take over the health maintenance organization (HMO) from the Department of Health (DOH).

For this year, Loyola targets a minimum 25-percent growth in sales while introducing at least one life product. Presently, it has a market share of 1.3 percent.

“We will now spend more on marketing our products and services with the improved regulatory environment. And we will seek more franchise partners for the memorial chapels, columbarium and mortuaries,” Concepcion said.

Loyola presently operates five memorial chapels while two others are franchisees. It has partnered with 350 mortuary operators nationwide.

Concepcion said partnerships offer more flexibility for the customers, and offers business opportunities for the mortuary business.

“We refer our plan holders to mortuaries near their residences more and it keeps the business rolling for our partners. We also have options to lease, own or franchise the funeral services,” he added.

However, the pre-need president pointed out that they make sure that their partners exude the same quality services and commitment similar to Loyola.

“We do not want to sell a plan or service if we will not be able to fulfill the promise. Loyola is not the biggest player in the pre-need industry, but we are happy to make an impact on society and force a change in its behavior. Loyola wants to preserve the good name and reputation that was built over the decades,” Concepcion added.

Last year, Loyola reported gross contract price of P252 million, while managing 6,000 plans. Trust funds amounted to P2.24 billion.

Loyola ranked third among the pre-need companies offering life plans.

It markets five variants of life plans, which are Prime (for ages 18-40); Premium (for ages 41-55); Gold (no age limit); White Packages; and Cremation at P150.

It likewise markets three variants of columbarium services, and three variants of microinsurance products.

The pre-need company’s more popular memorial chapels are located in Commonwealth, Cubao, Marikina, Makati, Sucat and Los Baños.