LEVERAGING ON TECH. IC Deputy Commissioner Ferdinand George Florendo said leveraging on technology, market awareness for risk, and low interest rate environment are seen to boost the insurance industry's growth this year and the coming years. He said companies need to implement measures to counter the impact of the pandemic and boost their sales. (Photo from the Department of Finance)
MANILA – An executive of the Insurance Commission (IC) has highlighted the importance for insurance companies to leverage on technology, among others, to boost their sales during the pandemic and drive the sector’s growth.
In a webinar jointly hosted by the Department of Finance (DOF), IC, and SGV & Co. on Tuesday, IC Deputy Commissioner Ferdinand George Florendo said tapping technology would be “very advantageous” for insurance companies not only for data but for sales.
“People are now risk-averse and would prefer, sometimes, to also deal using technology,” he said.
This change has been cited by several insurance company executives in the past, noting the faster they adapt to this change, the better their processes and sales would improve amid the new normal.
Florendo underscored the need for companies to hike market awareness for risk.
“With the pandemic a lot of people are now more aware of the need for protection to reduce risk. So, again, it’s important to be creative on the products that we offer our clients and the way we sell these to them,” he said.
Another important factor seen to drive the insurance sector’s performance this year and the coming years is the measures to counter the impact of the low interest rate environment.
Florendo said insurance companies make money not only from underwriting or through the selling of insurance coverage but also on their investments, such as securities.
He said companies’ investment income is affected by the volatility in the stock market as well as the low interest rate.
“That said not only will they have to look for other investment opportunities (but) they might as well try and develop other products that they may underwrite to increase not only sales but income,” he added. (PNA)
