MORE FILIPINOS may start buying life insurance products once the economy is under the most relaxed alert level amid excess liquidity in the market, BDO Life Assurance Company, Inc. President and Chief Executive Officer Renato A. Vergel de Dios said.
“As we move to Level 1, I anticipate that there will be an uptick [in demand for life insurance]. There’s a pent-up desire…[with people thinking] okay, what can we do? Because there’s also some liquidity in the marketplace,” he said at a virtual forum on Wednesday.
There will likely be interest from people that have increased savings during the pandemic as they have cut down consumption due to restriction measures, Mr. Vergel de Dios said.
“For those who did not lose their jobs, for those whose incomes have continued, they probably did not go out much for dining, spending or shopping,” he said in a mix of Filipino and English.
“I expect that there will be some uptick [in demand] if mobility will not be restricted,” he added.
Mr. Vergel de Dios said that while insurance can already be bought online, some people may likely opt to buy insurance in person as it is a big purchase.
“For slightly bigger purchase, you feel more comfortable to see a face transact with you,” he said.
He said they will focus on targeting BDO clients for their life insurance products. Eventually, he said they will also look into offering services even for nonbank customers.
Metro Manila Council Chairman and Parañaque City Mayor Edwin L. Olivarez said mayors in the National Capital Region unanimously support the move to relax restrictions to Alert Level 1 next month.
Business leaders have also backed the idea of easing restrictions further as infection cases have declined.
BDO Life’s premium income in 2020 reached P15.137 billion, the eighth highest among life insurers, based on data from the Insurance Commission.
Its new business annual premium equivalent was the seventh biggest in that year at P2.261 billion.
Meanwhile, the net profit of its parent lender BDO Unibank, Inc. dropped by 10.6% to P11.033 billion in the third quarter of 2021 amid increased expenses and lower net interest income. The bank’s net income for the first nine months of 2021 jumped by 95.7% to P32.484 billion.
BDO’s shares closed at P134.80 apiece on Wednesday, down by 20 centavos or 0.15% from its previous finish. — L.W.T. Noble