ALLIANZ expects insurance premiums in the Philippines to expand to €16.7 billion by 2034, with a compounded annual growth rate (CAGR) of 8.1% over the next 10 years, it said in a report.
The expected CAGR for the next 10 years is faster than the 7.2% year-on-year expansion seen in 2023 to €7.1 billion in premiums, the Allianz 2024 Global Insurance Report released last month showed.
“For the next decade, we expect the Philippine market to continue its robust development,” it said.
The report showed the expected CAGR of Philippine premiums over the next 10 years will outpace Asia ex-Japan’s 7.5% (to €2.816 trillion by 2034), China’s 7.7% (€1.472 trillion), and the 5.5% forecasted globally (€11.173 trillion), although the local market’s size will remain small in comparison.
Allianz’s Philippine bancassurance arm Allianz PNB Life said in a statement on Tuesday that the country’s population growth and young demographic presents long-term growth opportunities.
Allianz PNB Life President and Chief Executive Officer Joseph Gross said the Philippine insurance market’s performance in 2023 was driven by increased penetration, product customization, digital transformation, and improved financial literacy.
“Our performance aligns with these trends, showcasing our commitment to advancing the insurance landscape. Since our founding, we have released more than P1.8 billion worth of life-saving claims and continue to protect customers,” Mr. Gross said. “Our continued growth is anchored on our commitment to value creation across key aspects of the business: customers, distribution partners, and stakeholders.”
“We will pursue progress by achieving topline-to-customer value growth driven by regular pay protection, health, and long-term savings, streamlined offerings that are simpler, differentiated propositions, digital by default in service and policy management combined with human touch to sales and customers, and best-in-class sales performance, quality and productivity of our distribution network,” he added.
Allianz PNB Life said its premium income stood at P26.11 billion in 2023, while its net income was at P609.3 million, up 28% year on year.
It added that it placed seventh in the industry in terms of annualized net premiums at P1.1 billion.
The insurer ended 2023 with 1,684 sales agents servicing 169,001 customers in 17 business centers nationwide, it said.
The company focused on enhancing its core systems in 2023, allowing it to improve customer experience and operational efficiency through improved digital tools and platforms.
Allianz PNB Life Chief Distribution Christopher A. Cabognazon said the company is expanding by “accelerating transformation and value creation, maximizing channel growth, and driving the growth of our customer base through expansion and professionalization of our distribution network” to serve more market segments. — AMCS
