In line with the city’s growth in terms of infrastructure and establishments as well as the influx of more investments, Cebu’s local non-life insurance industry recorded significant growth of 10 percent for this year’s first quarter.
Compared to the first quarter of last year, Cebu Insurers Club president Andy Manatad announce that the industry has gained considerable growth of 10 percent this year as brought about by the strong growth of Cebu’s local economy.
Manatad said in an interview that the local non-life insurance industry collectively recorded a consolidated production of P5 billion for the whole year of 2007. Whereas for this year’s first quarter alone, they have already reached to more than P1 billion consolidated production at this early.
He stressed that with the pace the industry’s growth is taking at this point, they are positive to grow their consolidated production more this year as new establishments and investments keep on coming in.
Cebu Insurers Club is currently composed of 58 members made up by insurance companies, brokers, and insurance agencies from Cebu.
Manatad said that compared to life insurance providers, most of their products are compulsory requirements which are mandated by law. Non-life insurance includes four types such as casualty, fire, marine and sureties.
Fire insurance cover fire accidents for commercial establishments which are required by the local government sector even before a physical structure is built.
There is also passenger compulsory insurance for the shipping industry as well as the passenger for aircrafts, LTO’s compulsory third party liability (CTPL) for drivers of cars and other motor vehicles, and the comprehensive general liability for public establishments such as malls.
Manatad pointed out that the growth in their sector was driven by the increase of investors in Cebu. He said that the city’s positive business environment has fueled the increase in their production since these new investments need insurance in their business operations.
Despite surging prices in the world market and the slower pace of our country’s economy, Manatad said that their sector is still positive to grow this year.
He stressed that the positive growth of the local automotive industry is also one huge contributor for the growth of their sector as well as the increase of our imports. The increase in bank loan outs this year which are used for investments such as housing and business capital is also one significant factor that would drive their sector’s growth and production, he added.
“Developments cannot move without insurance. Contractors cannot construct new buildings, bridges or other projects without insurance. Aircrafts and ships cannot travel without providing insurance to their passengers as required by Marina and ATO and even cargos outside the country cannot be imported here without insurance required by the Bureau of Customs,” explained Manatad.
This week, Cebu Insurers Club is participating in the “Insurance Consciousness Week” that is celebrated nationwide.