Insurance company stable despite global financial crisis

Miami
October 14, 2008
Story: Insurance company stable despite global financial crisis

The group of insurance company is assuring the public that it is still safe to invest money to them despite of the global financial crisis that the world is experiencing right now.

In fact, they are hoping that “people will priority life insurance for their own future.”

They said this during their pres conference at Asian Institute Management (AIM) as the Philippine Life Insurance Association (PLIA) celebrates 13th year of life insurance consciousness week.

Mr. Victor Quisumbing, Vice-President of PLIA, also President and Chief Executive Officer of Grepalife, said life insurance is a major contributor to the socio-economic of the country. “The life insurance is not in crisis”, he stressed.

Quisumbing also noted that that a lot of people are not insured because people are unaware of the benefits.

According to the PLIA, the recent global crisis can actually be a blessing in disguise for them, and it gives them the chance to show that they are successful and that the stability of the company does not solely rely on having a big amount of capital.

Asked if they are affected with what happened in United States, Quisumbing said “If you take a look at the insurance agency, in terms of business generated it is business as usual.” Adding that they were been able to answer the worries of their people or clients.

“We have varied products that address the concerns of individuals, we have guaranteed products, premiums and benefits are guaranteed. We have products that give upside in terms of dividends, we also have products for some other people who will offer all the upside potentials to the clients,” said Henry Herrera, President and Chief Executive Officer of Sun Life.

With the recent crisis the group believe that this is the opportune time for them, “Life insurance agency is always at its peak during the times of uncertainty. But still depends on the sales force out there making sure that the people understand the need for a life insurance today,” Quisumbing said.

Herrera even cited that life insurance has three basic universal needs. One, “dying too soon” wherein a product achieved its maximum value when something happened to the insured person. Second one is, “living too long” by introducing products that will provide the insured person for some payments and give the person a dividends over a long period of time, or sharing in the benefit of the economic activity. Third one, “health insurance cost” when a family needs funds to cover hospitalization, the insurance is there to help.

“In good times and bad times, we are there, the more in difficult times you would need more protection for the risks that we are facing,” Herrera said.

During the press conference, they chose not to talk about the present situation of the Philam Life, they chose to talk about how the insurance work in terms of crisis.