The Business world reported last August 15 that the life insurance industry's total premium income grew by double in the first half, achieving a gross premium income of P95.5 billion, which is 81.21% higher than the previous year's P52.7 billion.
The good news came from the Insurance Commissioner Emmanuel F. Dooc. He, representing the industry officials, attributed the increase in premium income to the country's robust economic growth of 7.8% in the first quarter. “I think the improving economy, which has resulted in increasing disposable income and favorable market conditions, have been driving the increase,” he said. He added that the Philippines is also awash with cash which makes the insurers eventually tap through better products and intensive marketing.
From such growth, the Sun Life Philippines, after conducting their regular survey, shared that they observed an increasing awareness of the financial products among the Filipinos. By this, the survey result means that the Filipinos are learning the way of proper handling of money, while seeing the importance that investing makes, i.e. in life insurance, to one's savings and future. They get to have death benefits or life security, and an added potential for value cash accumulation.
Given this extremely optimistic performance that the insurance industry was able to generate, it can be drawn out that the increasing premium income will trigger the purchasing power of the Filipinos to further increase, along with the consumption spending, and the whole productive cycle will be positively affected. The increase in purchasing power would prompt the consumers to spend more, causing the production of goods and services to increase as well. Trying to cope up with the growing demands of the Filipino households, the firms would get to open opportunities for some to be employed and meet the supply necessary. With a better opportunity for employment, consumption and/or spending, the Philippines as a whole would experience and/or continue to experience an outstanding economic growth, and the life cycle continues.
Cetoy, Krizia Kate