Unsure of the Insurers; The Declining Pre-need Industry

[jpdm]

The controversy created by CAP and Pacific plans rocked and almost destroyed the reputation of the pre-need industry in the Philippines especially educational plans.

The failure of these big pre-need firms to solve the problem discouraged alot of pinoys to invest their hard earned money on this type of plans.

The recent shocking revelation of AIG (that it lost billions and asked for a bailout from the US govt), the mother company of the Philippines' leading insurance firm, Philam send chills among planholders because the company might also go down like its mother unit.

Definitely, Philam is still strong according to its owners but for how long?

Another foreign insurer operating in the country, Sunlife has exposure in Lehmans also...

Can we stiil be sure of our insurers in the philippines?

Manila Times
October 28, 2008


Education plans suffered a big drop in sales of about 72.2 percent to 610 followed by pension plans, which contracted by 24.3 percent to 4,404.


Compared with the previous month’s sales, however, all products suffered a contraction of 13.8 percent, led by education plans at 57.8 percent followed by life products at 14.6 percent. Only pension plans saw an uptick in sales of 4.2 percent.


In peso terms, preneed sales fell by 18.7 percent to P1.1 billion from a year ago with education plans registering sales of P103.8 million, 74.8 percent lower than last year. Pension plans dropped by 16.2 percent to P522.4 million but life products jumped by 47.8 percent to P477.5 million.
In the first nine months of the year, about 66.2 percent of the total sales were from life plans, followed by pension plans at 29 percent and the balance of 4.8 percent, education products.


In terms of value, pension contributed the most at 49 percent, followed by life at 38 percent and 13 percent, educational plans.


Initial collections from plan holders across products last month slid 2.8 percent lower to P125.7 million as educational plans dragged down the industry, by posting a 68.3 percent fall to P10.42 million. Life and pension plans’ initial collections rose by 43.1 percent to P37.6 million and 10.8 percent to P77.6 million, respectively.
-- Likha Cuevas-Miel

[True Faith]

....and the Yuchengco group of Pacific plans wants to have a piece of the Philam group of companies...

[jpdm]

....and the Yuchengco group of Pacific plans wants to have a piece of the Philam group of companies...

Well, Philam actually made no comment when YGC expressed their desire to buy the company.....

[True Faith]

Yup, that is right!

In fact, it was in the news about this "snub."

Anyway,

*jpdm

what are the more stable pre-need companies now in the Philippines?

Is Fortune Life, ok?

[mazdamazda]

What insurers? The pre-need industry is different from the life insurance business.

Plus your overgeneralized statement bout Philam following suit what happened to AIG is a very misleading one.

[jpdm]

Yup, that is right!

In fact, it was in the news about this "snub."

Anyway,

*jpdm

what are the more stable pre-need companies now in the Philippines?

Is Fortune Life, ok?

Actually, insurance companies in the Philippines have alot of products. For instance Philam Group provides a wide array of products.

Below are the biggest and by far the most stable and respected in the country:

Title: Prudentialife Plans, Inc. Description: Leader in the Pre-need industry. Offers Comprehensive Life, Education and Pension plans for the Filipino family.

Title: Philam Group of Companies Description: Offers a wide variety of insurance and financial services in the Philippines: from life and general insurance, pre-need plans, health care management, property development, mutual fund investments, savings and mortgage, property and casualty insurance and credit cards.

Title: Ayala Life Assurance, Inc. Description: A Philippine insurance company offering individual and group life insurance, health care, pre-need and financial products and services.

Im not sure about Fortune but it was founded by Ambassador Antonio Cabangon-Chua.

[True Faith]

Thanks, jpdm!

I saw in the news that respected companies are very much attracted to the Philam Group..

..notably Ayala and the BDO group..

...Even the monolith GSIS is interested with Philam..

..This shows that Philam is a very very attractive investment...

[jpdm]

Thanks, jpdm!

I saw in the news that respected companies are very much attracted to the Philam Group..

..notably Ayala and the BDO group..

...Even the monolith GSIS is interested with Philam..

..This shows that Philam is a very very attractive investment...

Agree here!

[jpdm]

What insurers? The pre-need industry is different from the life insurance business.

Of course.

Plus your overgeneralized statement bout Philam following suit what happened to AIG is a very misleading one.

Read again.

[True Faith]

I got this old article from GMA News online...

GMA News

Home > Business > Top Stories

Pre-need sales continue to dip

05/20/2008 | 03:28 AM

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MANILA, Philippines - The sale of pre-need plans continued to dip in the first four months of 2008 as the industry struggled to regain consumer confidence amid competition by other investment products.

From January to April, the total pre-need sales dropped by 21.08% to P5.14 billion from P6.51 billion last year, data from the Securities and Exchange Commission showed. This occurred amid a 3.48% increase in the number of plans sold, to 71,631 from 69,221 year-on-year.

Life plans sold during the period were up 45.1% to P1.83 billion from P1.26 billion, but sales of education and pension plans remained negative at 53.09% and 31.94%, respectively.

Consumers lost their confidence in the industry following a controversy involving some pre-need firms selling educational plans that failed to serve the clients. Among these firms were Professional Financial Plans, formerly TPG Corp., and College Assurance Plan Philippines, Inc. - BusinessWorld