PHL insurance sector seen to sustain growth

THE PHILIPPINE insurance sector could post double-digit growth until next year as positive economic prospects could help drive spending and as the industry’s penetration rate remains low, the top official of East West Ageas Life Insurance Corp. (East-West Ageas) said.

- Aubrey Rose A. Inosante

EastWest Ageas President and Chief Executive Officer Sjoerd Smeets said he expects the insurance market to grow around 11% this year despite declining interest rates and the weak performance of the stock market.

“But I still believe that next year will have a growth probably in the double digits. GDP (gross domestic product) growth in the Philippines still is expected to be around 6% next year, and you normally see the insurance market outpacing that a bit because the insurance sector in the Philippines is still under-benefited versus other Asian countries,” he said at an event on Tuesday.

“The total insurance spend [versus] GDP is something like 1.7%. And in mature markets, that’s close to 5%. So, that growth will still kick in. And with more Filipinos having higher earnings potential, we definitely expect the life insurance market to still grow.”