The Market Monitor Minding the Nation's Business
The recent gross domestic product (GDP) growth results and the robust projections for the Philippines for several years continue to bolster the Philippines’ reputation as one of the region’s economic tigers.
With the administration set to present its socioeconomic blueprint, Allianz PNB Life Insurance Inc. CEO Olaf Kliesow said the country’s growth momentum should be supported by investments with adequate financial protection.
“With the Philippines expected to maintain its position as the fastest-growing economy in Southeast Asia, it is even more imperative that families have the adequate financial support and protection that they need,” he said.
“Families in the Philippines continue to face the threat of substantial financial hardship should the breadwinner pass away, which we refer to as the ‘protection gap’,” Kliesow explained.
“In the Philippines, this protection gap is estimated to be at P24 trillion or P1.17 million per household,” he added.
“This financial instability is worrisome, as it makes Filipino families vulnerable to life events such as critical illnesses,” Kliesow said.
Kliesow said Allianz PNB Life Insurance Inc. is looking into expanding its portfolio to include more health and microinsurance products to help Filipinos reduce the protection gap. He pointed out that such measures are crucial for Filipinos to sustain their financial gains.
“Despite the positive macroeconomics, only one in three Filipinos have a bank account. Filipino families need to be able to acquire viable alternatives for protection, sustaining them through key milestones or unexpected events,” added Kliesow.
“Through our partnership with Philippine National Bank (PNB), we hope that our life and health insurance expertise and their knowledge of the Philippine market would help us provide more Filipinos with the knowledge and tools that they need to secure a better future for their families,” he said.