“The Philippines has a historically large uninsured and underinsured population,” said Thomas Buberl, the Global CEO of AXA, as he and AXA International Markets CEO Hassan El-Shabrawishi recently visited Manila and acknowledged the Philippines as a key international market.
“We want to address this by providing services and solutions that are more attuned to Filipinos’ always-evolving needs, throughout their unique life journeys – may it be for income protection, health, or savings and investments. This also means offering more inclusive packages that are affordable and yet, do not compromise on giving the protection they need.”
Numerous studies have shown that an increase in insurance is a sign of economic progress.
According to a recent study in the Asian Financial Review, there is a long-term causal relationship between insurance penetration and density and per-capita GDP, indicating that the insurance industry’s success has a major impact on economic well-being.
Despite record per capita insurance spending in 2022, the Philippines now has an insurance penetration rate of less than 2%. This is much lower than the 7.3% average global penetration rate for insurance.
Despite the implementation of the Universal Healthcare Act and the fact that government healthcare funding accounted for 50.3% of healthcare spending in 2021, being chronically underinsured has had serious effects for Filipinos.
For many Filipinos, out-of-pocket (OOP) healthcare costs continues to be a serious issue. According to the Philippine Statistics Authority, OOP health spending was 453.23 billion pesos in only that one year.
While underinsured Filipinos are poorly prepared for health crises, the Philippines is also frequently cited as one of the most natural disaster-prone countries in the world.
This is an unfortunate distinction the World Bank confirmed again last year. The situation is only going to get worse with global climate change.
Buberl explained, “It is this high-risk, low-insurance spending scenario that makes Filipinos highly vulnerable to financial losses in the face of life’s uncertainties. At AXA, we firmly believe that while life is full of risks – the future shouldn’t be one of them. This is why we are doubling down our efforts to protect customers and empower them to achieve financial stability and turn their dreams into more attainable life goals.”
Only insurance provides a financial safety net to make sure that a crisis such as the death or severe illness of a breadwinner and the destruction or even theft of a property does not spiral into financial ruin.
“This underscores the role and purpose of AXA in the Philippines – to protect more and more Filipinos. This visit by our global leaders shows AXA’s commitment to the country as a key insurance market,” said AXA Philippines CEO Bernardo Rafael Serrano Lopez.
In line with our purpose, acting for human progress by protecting what matters, AXA Philippines is constantly innovating its products to best serve the wider Filipino community.
“Each market is not only unique, but dynamic. For this reason, we have to constantly reassess the relevance of our products, both locally and globally, and make the necessary changes,” concluded El-Shabrawishi.
A pioneering and leading insurance company in the world, AXA is present in 50 countries and currently provides protection for 95 million customers worldwide.
AXA Philippines provides a comprehensive suite of life and non-life insurance products, as well as professional needs assessment, to ensure that AXA customers and their loved ones are prepared to face any crisis.
To know more about AXA Philippines and which plan fits your life goals and needs, visit https://www.axa.com.ph/.
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