Insurance in the Philippines is still very Raw despite the fact that insurance was already present in our country during the Sp
anish era. Maybe due to politics and misleading the public to wrong information lead the entire nation to ignorance in Insurance. In fact, one insurer said that only 13% of the Filipinos today are insured!
With the percentage provided, i don’t think our insurance industry is ready for Bancassurance yet. But as early as year 2000, our country was already engaged in bancassurance or the selling of insurance products via bank because they are hungry for the volume reach of the banks and vice versa.
Why do i say, we are not yet ready for this? Because we have to fortify the grounds of insurance first in our country. Make every citizen aware of the benefits of insurance first. So that our citizens will value Insurance as a whole and protect the interest of both parties. Meaning the insurance companies can earn profitably and the assured will benefit wholly on their
maturity dates or in non-life, the assured will be paid correctly during claims. Unfortunately, we always advance to the next level without really mustering the current level. Our
insurance industry has so many loopholes that an ordinary citizen can fabricate stories and file for a claim easily. No strict policies that is why the industry is so vulnerable to losses. I believe insurance in Manila is one of the most abused things besides senior citizen discounts and credit card coupons!
In other leading nations, assured does not want to file a claim on their car insurance because for every claim, their rates increases the following year, every traffic violation, their rates increases.Because they have a concrete system and they know the consequences, bancassurance will work for them. Here, we don’t have the system yet, people abuse insurance, so banks can not sell for the insurance company or the brokers. As a whole, they are just killing the industry. How can the insurance sustain the business even if they have volume if a catastrophe strikes again just like Ondoy, where will they get the amount to pay the assured if they are dropping the rates? We, Filipinos forget easily.