Reliance Insurance's not-so-secret 'secrets' of longevity

MANILA, Philippines - All businesses want to succeed yet not everyone makes it. Some fall immediately by the wayside, while others succeed only for a couple of years then eventually fold up. But there are companies like Reliance Surety & Insurance Company which have withstood the test of time and continue to be successful even after nearly six decades of existence.

What’s their secret?

“Trust,” says Andrew Co, the youthful president of Reliance. “Trust is the key to our longevity. The trust of shareholders, employees and customers alike is the reason behind our endurance.”  Trust is the cornerstone of the company’s mission of “Assuring a Safer Tomorrow” which applies to all stakeholders.

Reliance will be celebrating its 60th anniversary in August with a simple yet elegant party at the Manila Hotel. This early, the company is busy gathering memorabilia that would make the event truly meaningful. Everybody in the company feels special because, despite the hard times being faced by the industry, the company has chosen to celebrate this once-in-a-lifetime event.

Recently, the company even hosted a reunion of its former employees who have retired or moved on to other endeavours after their stint with Reliance. Many of these former employees started their careers with Reliance in the ‘60s and ‘70s and they are proud to see that the company that has given them their first “big break” has grown so well.

“Some who attended came all the way from the United States,” said Nanette Sia of the company’s human resources department. “The balikbayans, the old-timers and current officers were so happy to participate in this memorable event.” Sia noted that unlike other companies that suffer from quick employee turnover, Reliance enjoys loyalty among its staff. 

Apart from “Trust”, however, Reliance also has the following “secrets” to thank for its longevity: 

Word of honor

Reliance president Andrew Co said that insurance is not only a piece of paper but a “promise” to protect a customer from a certain risk should such risk happen. “You have to honor that promise no matter what,” he said. 

To honor this promise, one of Reliance’s most senior employees who oversees the claims department sees to it that all legitimate claims are settled as promptly as possible.

“We pay claims immediately after all authentic documents have been submitted to us,” she said. “That applies to all, regardless of the amount.” 

Prudence

The second thing that has made Reliance survive through tough times is prudence.

Co explained that insurance premiums are not earnings of the insurance company. They are funds that customers entrust to the insurance company for proper management so that in case a loss happens they have something to help them get back on their feet.

Reliance only invests in financial instruments that have sound fundamentals. It has also made it a point to keep its cost within the most advantageous level so as to ensure that at the end of every year, the company has more surplus funds than what is required or adequate.

“Insurance is the science of risk management. As an insurance company, Reliance cannot afford to take on too much risk. Even for us human beings, being risk- averse often leads to a longer life,” he said. 

Quality

 And finally, Reliance has made it an office policy to always maintain the highest quality possible in terms of service to the client. 

“We never resort to undercutting of rates just to get clients. We maintain a certain price level which is based on basic underwriting principles. In a way, we want to be a premium brand and not just one of the many insurance companies in the market.  This is the reason why our customers also value us because we always make sure that they get the best value first,” Co said. 

Indeed, with these not-so-secret “secrets” of Reliance Insurance, any company can survive for 60 years and still go strong.  And just like Co, who is already the third generation in his family to head the company, the future will be as sure as the sun rising tomorrow.