With a net worth of around 366.8 billion Philippine pesos in 2020, the insurance industry in the Philippines is reported to account for 1.4 percent of the gross national income. As per a report, the industry has actually posted a decline of 8.6 percent as compared to the 2019 figures. However, the 2021 figures are turning out to be quite positive on a YoY basis. Where the expenditures on leisure and luxury items are going down, items pertaining to health and finances have marked a strong growth in the financial year of 2020-21. This is largely credited to the pandemic.
Preparing for the next financial meltdown
It is not just in the Philippines, but across the globe, people have realised the importance of savings and a good health insurance cover. This is something that has been echoed by some of the leaders of the insurance industry in the country. One of them being, Cocolife.
Awarded, ‘Most Outstanding Life Insurance Company in the Philippines’, by International Business Magazine, Cocolife has been serving the Philippines market for the past 43 years. Today, its product portfolio includes Healthcare, Individual insurance, Group insurance, Bancassurance and more.
Delving into its insurance portfolio, Cocolife has a Health insurance program that provides customizable and flexible coverage, access to a vast network of accredited service providers and facilities nationwide with prompt and ready assistance through their 24-hour medical helpline. Cocolife also provides ‘Daily Hospitalization benefit’, ‘Medical Reimbursement program’ and ‘Third party administration program’. While the daily hospitalization benefit lends financial support to those who are hospitalized for some sickness or accident, the medical reimbursement program helps to cover the expenses incurred.
Cocolife has a whole set of products that cater to the individual needs. From financial coverage for injury, disability or death to a customized investment and insurance plan that could be tailored as per the goals in life. The firm’s ‘FLEXI Education’ program is designed to support the child’s education in all circumstances. FLEXI from Cocolife allows one to design one’s investment and insurance plans to help grow money. It also aids in a comfortable retired life. In the same scheme of things is Cocolife’s Zenith Med that allows access to high investment returns and exclusive access to the widest network of accredited hospitals.
Cocolife has introduced some innovative Group Insurance packages to meet the needs of an organization. Cocolife has a group term insurance that pays the creditors the outstanding loan balance in case of insured-debtor’s death. The ‘Group Yearly RenewableTerm Insurance’ pays the beneficiaries of the deceased and provides a flexible coverage option based on the salary and the tenure.
Major insurance service providers have tied up with financial houses to provide Bancassurance. Cocolife has designed insurance products designed exclusively for UCPB clients. There is one product that ensures capital growth and protection by offering an interest rate that is claimed to be higher than any ordinary savings product. The company has also designed a single-pay variable life investment product with an increasing death benefit. Under this plan, Cocolife invests the investors’ money in six fund options based on the risk appetite. There is another single-pay product called the ‘Zenith’ that allows one to build wealth with high returns on investment.
Expanding to the digital horizon
There was a trend towards digital transformation in 2018-19 in the banking, healthcare, finance and even the insurance sector. The pandemic accelerated the whole transformation process and today there is a visible difference in the way we conduct our daily shopping, experience entertainment, perform our tasks at work and the way children study.
The whole digital revolution among the common masses has led to a rise in online payments with many opting for cashless transactions. This new disruption is also promoting operation efficiencies, business continuity and enhanced emphasis on information security. The digital platform has proved to be one of the best tools against all future disruptions. The story has turned out to be the same in the insurance industry.
Many companies have ventured into the smartphone ecosystem with their own apps and Cocolife is a prime example of it. It was recently reported that Cocolife signed a virtual contract with Questronix Corporation to develop its own mobile app. Through this smartphone platform, Cocolife intends to offer its users seamless transactions and 24/7 access to policy details. The new mobile app is also meant to provide customer support and digital claims.
According to Cocolife President and CEO Atty. Martin Loon (pictured above), the digital transformation has extended in the backend of its business operations as well. Since this initiative was taken even before the onset of the pandemic, it enabled its entire workforce to manage the internal processes from the comfort of their homes. A point to note here is that with the new work norms in place during the pandemic, Cocolife was able to pay out P1 Billion in Covid claims. Martin claims that his sales team was actually able to sell out more policies by leveraging the new opportunities. The president adds, “The board readily agreed when we gave the rationale for that decision. And I was telling them how we respond to the pandemic will really define how the future generations of Filipino insurance clients of Cocolife will remember us. I don’t want to be remembered as an insurance company that shirked from the responsibility that came out of this pandemic. I want to be remembered as a company that really was there, was consistently there.”
Insurance is meant to help people continue living their lives, keeping the transactions open and keeping the flow of income alive. The internet and smartphone-based insurance market is proving to be a smoother customer experience, thus leading to a rise in the support and faith towards the insurance industry. Companies like Cocolife have garnered good faith among the insurers across the globe and this trust factor is going to help the insurance industry remain robust in all future adversities.
Article by Ujal Nair