With global crisis after global crisis, we are living in truly uncertain and unpredictable times. Insurance is now more important than it has ever been for protecting everything that matters.
It is great news then that AXA Philippines has finally completed its merger with its former general insurance subsidiary, Charter Ping An, allowing the global leader to offer both life and non-life insurance products under a single recognized global brand, making vital insurance protection more accessible than ever to more Filipinos.
Fortunately, the perception of insurance among Filipinos has improved. Filipinos are becoming increasingly aware of the importance of investing in insurance to secure their future. Apart from the issue of runaway inflation, life in general, and life in the Philippines in particular, is fraught with uncertainty.
We are statistically the most natural disaster-prone country in the world, with an average of 20 typhoons per year, five of which cause major damage, according to the Asian Disaster Reduction Center, and our unfortunate location is in the Pacific Ring of Fire. Pre-pandemic city traffic is almost entirely restored, and vehicular accidents are on the rise.
While COVID-19 remained a problem for much of the world in September 2021, insurance penetration in the Philippines reached an unprecedented 2.3 percent of the nation’s GDP, with Filipinos spending an average of 26 percent more on insurance, according to the Philippine Life Insurance Association. However, we are still lagging behind much of the rest of the world.
According to the Bank for International Settlements (bis.org), the global insurance penetration average in 2017 was 6.1 percent, with the Asian average being 5.6 percent and the ASEAN average being a very low 3.6 percent. Even with penetration in the Philippines at an all-time high, the country is clearly underinsured. The main cause, according to the Insurance Commission (IC), is a lack of financial literacy.
In a recent forum, Insurance Commission Deputy Commissioner Ferdinand George “Bong” Florendo cited a September 2022 Worldbank report indicating that only 25 percent of Filipinos are financially literate, compared to 36 percent in Malaysia and 59 percent in Singapore.
The key to getting the right insurance to protect what matters is sound advice, which AXA Philippines is ready and able to provide, along with every type of insurance to help you protect what matters.
Every individual’s insurance needs are unique, and they change over time, with age, and with changes in circumstances. AXA Philippines is the only name you need to remember for a thorough professional financial needs assessment.
For more information on how best to address the insurance needs that are unique to you, go to https://www.axa.com.ph/.
