According to the Philippine Statistics Authority, the country’s current healthcare spending (CHE) increased to Php792.6 billion in 2019. (PSA).
Also included in CHE is the total of all government, HMO, insurance, and out-of-pocket (OOP) expenses for healthcare spent by Filipinos.
And 47.9% of it comes directly from Filipinos’ own finances.
As a result, there is a significant health insurance gap that has to be closed since it causes around 1.5 million Filipinos to fall into poverty every year. As a result, it compels families to reduce expenditure on necessities like education.
As a direct result, insurance companies must put in more effort to close this gap. On the other side, we have witnessed improvements in out-of-pocket spending from 56.3% in 2017. It equates to a marginal improvement in the nation’s total healthcare system.
Gap in Health Insurance
The pandemic certainly shocked everyone, but notably the medical sector. However, the nation is already struggling with issues related to health care. Or, to put it another way, the COVID-19 pandemic made the situation worse.
Because they lack access to necessary medical care, many Filipinos perish.
While some people manage to live only to experience poverty, there is a tremendous demand for life and health insurance, which is essential to a country’s development.
The Philippines’ Rising Medical Costs
Approximately 4 million Filipinos have HMO coverage in 2017. Only Php150,000 serves as the typical maximum benefit limit (MBL).
Even though it’s little, it nonetheless provides a lot of support for sick workers.
Major medical health issues including heart attack, cancer, stroke, and others are not sufficiently covered by it.
Giving the impression that your coverage is adequate provides you false comfort. Because the approximate Php 1.8 million costs of a stroke is significantly more than the MBL. A heart attack costs Php 900,000, a breast cancer diagnosis costs Php 430, and a lung cancer diagnosis costs Php 2.7 million.
What we refer to as “out-of-pocket” spending is the difference between the MBL and the actual cost of care.
In the event of illness, you have two options:
Sell your properties or utilize your resources that were set aside for other purposes, like your children’s school, a house, or a company, to pay for the medical expenses first.
Second, acquire life and health insurance to shift the risk to an insurance provider.
How do we create the list?
Numerous organizations are competing for the title of best life insurance. Additionally, a few blogs and websites have chosen to combine the data from the Insurance Commission (IC). Is it, nevertheless, the proper method of processing the data?
Therefore, don’t worry; this blog is here to clear up your uncertainty.
IC published five (5) financial reports in April 2022, and several companies dominated each statistic. However, just one of the five (5) categories is frequently utilized to rank the top 10 life insurance providers. This is “Premium Income,” and it applies not only to the Philippines but to the entire world.
An insurer’s earnings from premiums paid by clients who purchase insurance products is known as premium income. The fee incurred by the consumer for a specific period of the insurance policy, such as when purchasing a health insurance policy, is referred to as the premium. (Investopedia)
Interpreting the categories
The additional measures are crucial as well. For instance, you may use it to determine a company’s overall financial health.
These are some possible ways to interpret the categories.
Premium Income
It combines the insurance company’s current and previous activities.
The renewal premiums are sometimes referred to as a previous business. Also, a high rate of renewals indicates that customers are satisfied with the services because they continue to pay for their subscriptions. Additionally, it implies that the corporation does high-quality business.
Furthermore, the current business is what we refer to as the NBAPE.
New Business Annual Equivalent (NBAPE)
It represents an insurance company’s year-over-year sales performance. Therefore, acquiring new business is crucial. In other words, a company’s new business yearly equivalent reflects how the general public views it.
Growth is therefore preferred, whereas a drop indicates a loss of enthusiasm or confidence.
Net Income
It is the income less the costs. It demonstrates the company’s profitability in this way. You must think about profitability because you will be investing your hard-earned money through insurance.
Naturally, you want the company to be available when needed.
Net worth
It is equivalent to the obligations minus the assets. It unquestionably demonstrates a company’s ability to pay its responsibilities like claims.
Use this to predict if the business can afford to settle future claims.
Total Asset
Both current and fixed assets make up its structure. Similarly, you can examine how the business handles its assets here. In order to sustain its operations and sales, a strong company should have expanding assets.
Sun Life Remains the Top Life Insurance Company in 2023
According to the Insurance Commission’s most recent performance report, which was issued in April 2023, Sun Life is the top insurer in 2022. Sun Life has therefore won the premium income category in conventional (whole life, term, and endowment) and variable policies for the eleventh time in a row.
Why is it important to you as an insurance buyer that a life insurance company is ranked first (or is among the top 10)?
Because it proves that companies like Sun Life can still keep their word to their customers.
Keep in mind that a life insurance contract is an aleatory, or promise contract, which requires the insurer to provide the promised payment in the case of a specific event, such as death.
Of course, you want your family to benefit when it occurs to you, right?
Sun Life’s Traditional and VUL Plans
Before purchasing any insurance plan, it is essential to consider the reputation of the insurance provider into account. You want the business to be operating effectively when the need comes so it can fulfill its duties to you. However, you shouldn’t use this as your only justification for requesting a plan. Of course, you should also take factors like convenience, client satisfaction, a recognized financial advisor, etc. into account.
You don’t buy life insurance because someone has to die. You buy life insurance because someone has to continue living.
If you want income security together with a wealth creation strategy, a VUL plan is ideal. You may increase your wealth while gaining security and peace of mind concerning your finances.
Philippines’ Top 10 Life Insurance Companies, 2023
Identify the remaining companies on the list in more detail now. As previously noted, we used the premium income to rank the top 10 life insurance companies in the Philippines. The total results for each company are summarized in the table below.
The top 10 life insurance companies in the Philippines as of 2023 are shown above.
1. Sun Life of Canada (Philippines) Inc.
The earliest and oldest life insurance business in the Philippines is Sun Life of Canada (Philippines), which was formally established in 1895. Unquestionably, Sun Life is the preferred provider of life insurance in most families due to its track record of keeping its commitments to customers. It seems to reason that it is still the best life insurance company in the country.
➡ Premium Income: 1
➡ NBAPE: 2
⬇ Net Income: 2
⬇ Net Worth: 3
⬆ Total Assets: 1
For 11 years running, Sun Life maintained its top spot as the top life insurance provider in the Philippines in 2022.
Additionally, it only trails Prulife by a little margin of Php 75 million in terms of NBAPE.
While it surpasses AIA Philippines in Total Assets, taking over for first place, there is a marginal fall in net worth and net income.
2. Philippine AXA Life Insurance, Corp.
AXA Philippines was just founded in the Philippines in 1999, but because to its bancassurance operation, it has seen enormous development and market penetration. Another important detail is that it is a joint venture between Metrobank Group and AXA Group.
➡ Premium Income: 2
➡ NBAPE: 3
➡ Net Income: 5
⬇ Net Worth: 7
➡ Total Assets: 3
In fact, the corporation has maintained the majority of its rankings across all categories, with the exception of Net Worth, which fell one spot.
Even though the company was solid, it virtually didn’t expand by bringing in new clients.
3. Pru Life Insurance Corp. of UK.
The company was established in 1996, making it 23 years old in the Philippines’ life insurance market. Pru Life UK got the third position on the list despite being comparatively new compared to its competitors.
➡ Premium Income: 3
➡ NBAPE: 1
⬇ Net Income: 8
⬇ Net Worth: 10
➡ Total Assets: 5
Pru Life also retained its position in terms of Total Assets, NBAPE, and Premium Income. Despite holding onto the top rank in NBAPE for two years, Sun Life’s performance was only marginally better. Additionally, there was a discernible decrease in its net worth by three positions and net income by four positions (3).
4. Allianz PNB Life Insurance, Inc.
In the top 10 life insurance companies in the Philippines, Allianz PNB Life, which was established in 2001 and operates as a subsidiary of Alliance SE, is now ranked fourth after rising from tenth position the previous year.
⬆ Premium Income: 4
⬆ NBAPE: 4
➡ Net Income: 13
⬆ Net Worth: 19
➡ Total Assets: 9
This year, Allianz PNB’s company is truly a game-changer. While there have been no changes to its net income or total assets, it made significant improvements in premium income by moving up three (3) places, four (4) in NBAPE, and seven (7) in net worth.
5. FWD Life Insurance Corporation
FWD began in the Philippines in 2014. They are among the top 10 life insurance providers in the Philippines despite being a relatively young participant in the market.
⬆ Premium Income: 5
⬇ NBAPE: 6
⬆ Net Income: 10
⬆ Net Worth: 11
➡ Total Assets: 12
In terms of premium revenue, FWD moves up five (5) positions while its NBAPE fell one (1) spot. Despite no changes in their position in the overall asset ladder, they also demonstrated improvement in net income and net worth.
6. BDO Life Assurance Co. Inc.
A partnership started in 1999 by Generali Pilipinas Holdings Company Inc. (GPHC) and BDO. However, Generali has changed its name to BDO Life Assurance Company Inc.
⬆ Premium Income: 6
⬆ NBAPE: 5
⬆ Net Income: 7
⬆ Net Worth: 5
➡ Total Assets: 8
As they move up two (2) spots in terms of premium income and NBAPE, BDO Life has also adjusted to the pandemic. As a result, the company’s net income rises from 30th to 7th position. And finally, net worth climbed by three (3).
7. BPI-AIA Life Assurance Corporation
Originally established in 1933 and known as Ayala Life Assurance Incorporated. Due to the strategic partnership between BPI and Philam Life, it is the top bancassurance in the nation on the list.
⬇ Premium Income: 7
⬇ NBAPE: 7
⬆ Net Income: 6
⬇ Net Worth: 6
➡ Total Assets: 7
In terms of premium revenue and NBAPE, BPI-AIA drops by two (2) positions. Despite maintaining a 7th-place position in terms of total assets, net income decreased.
8. Manulife Philippines
Manulife, also known as Manufacturers Life Insurance Company (Phils. ), is a fully-owned division of The Manufacturers Life Insurance Company. It was then founded in 1907, making it one of the country’s first insurance providers.
⬇ Premium Income: 8
⬇ NBAPE: 8
⬇ Net Income: 4
➡ Net Worth: 4
➡ Total Assets: 6
NBAPE and premium income both fall by two (2) positions. While its position in terms of net worth and total assets remained constant, its net income also decreases.
9. Manulife Chinabank Life Assurance Corporation
China Bank and Manulife Philippines have formed a strategic partnership to form the company. It seeks to provide China Bank customers with a comprehensive selection of cutting-edge insurance products and services.
⬆ Premium Income: 9
⬆ NBAPE: 9
⬇ Net Income: 24
⬇ Net Worth: 16
⬆ Total Assets: 10
Additionally, Manulife Chinabank moved up two (2) spots in the rankings of the top 10 Philippine life insurance firms for premium income.
Their most recent listing was in 2019.
The NBAPE moved up four (4) spots. The corporation had a considerable fall in net income and net value despite an increase in renewals and new business. On the other hand, their overall assets have somewhat increased.
10. AIA Philippines
With his business partner Earl Carrol, Cornelius Vander Starr launched AIA Philippines, formerly known as Philam Life, in 1947. Without a doubt, their remarkable collaboration helped Philam Life become the industry’s top life insurance provider in just two years, in 1949.
⬇ Premium Income: 10
⬇ NBAPE: 10
⬆ Net Income: 1
➡ Net Worth: 1
⬇ Total Assets: 2
Additionally, AIA Philippines has experienced a significant decline in premium income of 6 in only one year. NBAPE likewise had a one (1) decrease while maintaining its position in terms of net value. Additionally, Sun Life overtook the corporation for the top rank in terms of total assets, which it had held for a while.
Philippines’ Top 10 Life Insurance Providers (NBAPE) 2023
Gaining more clients results in more revenue that may be used for business growth and claim payments. Additionally, it can result in reduced administrative and insurance costs, which can lead to an increase in investment fund allocation for your VUL plan or dividends for a conventional insurance plan.
Pru Life UK led this category with new business premiums of Php 8.83 billion. Sun Life, at Php 8.56 billion, finishes in second place, although by a slim margin.
To get a more thorough understanding of how each life insurance provider performed in 2022, please see the table below.
Philippines’ Top 10 Life Insurance Companies by Net Income, 2023
Net income, in a nutshell, is the sum of a company’s profits after deducting all operational costs. As a result, AIA Philippines overtook Sun Life this year as the lead.
The Philippines’ Top 10 Life Insurance Companies by Net Worth as of 2023
In terms of net worth, or the amount by which assets surpassed liabilities, Philam Life maintained its top ranking, followed by Insular Life, Sun Life, and Manulife.
Philippines’ Top 10 Life Insurance Providers by Assets, 2023
An asset is something that is anticipated to provide advantages in the future through cash flow generation, expense reduction, sales growth, etc. Sun Life has now surpassed AIA Philippines in terms of total assets after a number of years.
How Do You Choose the Best Life Insurance?
It may be really difficult to choose the ideal insurance plan when purchasing insurance for the first time. Not to worry.
Everyone has a beginning. Additionally, selecting subsequent plans is considerably simpler once you’ve had your initial insurance.
To locate the “appropriate” plan for you, however, you can now follow the instructions below.
Five Steps to Finding the Best Insurance Plan
1. Pick 5 insurance companies.
Choose five (5) businesses from the top ten to reduce your options. Then, decide what traits you are looking for, such as good customer service, a solid financial position, and an affordable price.
But be careful since just because something is cheap doesn’t necessarily imply it’s the greatest insurance.
Therefore, consider the value before the price.
2. Understand what matters to you.
You must first understand yourself before you can receive such suggestions, so let me ask you, “What are your top five priorities?” So, avoid becoming like someone who merely purchased insurance without a plan of action.
You wish to save your family from financial hardships.
However, the rising expense of medical care remains a problem nowadays.
Perhaps you want to ensure the future of your children by giving them the greatest education and a place to live.
Some people consider their future plans for retirement. To keep yourself busy, why not start a business?
So be sure to consider how significant this choice is for you.
But once more, let me emphasize that purchasing insurance is a long-term commitment.
You’ll have setbacks from time to time. As a result, you can give up on the strategy if you don’t have a clear understanding of why you started. Naturally, I am aware that you don’t want to squander your time or money.
Set your objectives now.
3. Schedule an Appointment
Make contact with an adviser at each business and schedule a meeting.
You are not at a restaurant, therefore don’t just go through the pages of the offers you receive as if you were looking through a menu; this is important for your future.
Take some time to sit down and talk about life insurance because it is for your future.
Here are some characteristics to look for in a consultant:
- He needs to be accessible. Can you get in touch with your adviser in an emergency? To monitor your account and do recurring policy adjustments, an adviser should be available. For instance, there may be instances when you need a refresher on your plan since you forgot about your coverage. So don’t consult an adviser if you’re afraid to inquire.
- He has the knowledge, right? Can he clearly lay out the choices and plans? Additionally, you may have heard that it’s important to read the small print of an insurance policy. Yes, you should be aware of the advantages and disadvantages, but a seasoned counsel will always state their opinion unequivocally. Because he truly cared about you and is not merely interested in making a sell.
- A trustworthy individual. Keep in mind that you are purchasing more than simply an insurance policy. Therefore, think of your insurance plan as your backup plan for the future of your family. Do you believe he will still be employed by the insurance provider when you need him? Additionally, advisers stay with the business for a median of two (2) years.
Selecting the ideal advisor is just as difficult as selecting the best insurance strategy. A strategy for insurance also serves as evidence of how much you value your family. On the other hand, a consultant is your collaborator or, to put it another way, the custodian of that evidence. So be careful to think about a contactable, knowledgeable, and trustworthy advisor.
4. Prepare questions
You may now start preparing for the inquiries that most worry you. Then, however, you do not need to calculate each fee annually. Do you have to know how much a bag of chips costs to produce? In my opinion, no.
You establish your goals in step three. The value should be the deciding factor rather than price.
During the product presentation, your adviser will address any of your questions. Ask if you have any other queries.
Once more, because this is for your future, make sure the strategy satisfies your requirements.
5. Make a final decision.
You have now met with the five (5) advisors and looked through their suggested strategy. You may now make a table or list of the features you desire and require from an insurance plan compared to the proposals.
Which one of these now best suits your objective?
Even while certain riders or advantages are welcome additions, take them out if they don’t support your objectives. Just acquire what you need.
I’m hoping this may help you find the “best” insurance plan.