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November 28, 2023

AIA Philippines sees surge in health insurance demand post-pandemic

AIA Philippines Life and General Insurance Co. Inc. (AIA PHL) is experiencing a surge in insurance spending, especially in health-related products, as Filipinos recognize the value of safeguarding their lives and assets in the post-pandemic era. AIA PHL’s CEO, Kelvin Ang, noted that the Covid-19 pandemic has heightened awareness of insurance products. Total coverage has nearly doubled since before the pandemic, with a significant focus on health insurance.

In response to strong demand, AIA PHL remains bullish on the health insurance sector and expects it to continue growing. In the previous year, AIA PHL paid out P8 billion in claims, while its subsidiary, Medicard Philippines Inc., disbursed P4 billion in claims. This underscores the growing recognition of the importance of insurance, particularly health insurance, among the Filipino population.

Despite rising inflation and global economic uncertainty, Ang remains optimistic about the insurance market in the Philippines. He points out that the country’s insurance penetration rate remains below two percent of GDP, indicating substantial growth potential for insurance product providers. People are increasingly recognizing the significance of insurance and are raising their coverage amounts while introducing insurance to other family members.

AIA Group Ltd.’s Chief Investment Officer, Mark Konyn, emphasized the need for professional investors or managers to help individuals make sound investments during this period of global economic uncertainty. To address this, AIA is launching a new fund, the Global Dynamic Income-Paying Fund, which will enable Filipino investors to access both local and global markets and grow their wealth while receiving dividends. This fund allows customers to earn dividend payouts with a potentially increasing percentage when available, without affecting the policy’s account value.

At the end of the first quarter, AIA Philippines reported a net worth of P71.709 billion, making it the leading company in the local life insurance industry, according to data from the Insurance Commission (IC). AIA Philippines is a subsidiary of AIA Group Ltd.