Alexander Grenz
Allianz PNB Life President & CEO - Alexander Grenz

Microinsurance Philippines  | Extending Reach, Digitization Crucial to Addressing Protection Gap in PH | Allianz PNB Life President and CEO Alexander Grenz underlined the importance of expanding insurance companies’ reach and the digitization of data and the delivery of services in addressing the protection gap in the Philippines.

“Protection does not only mean financial services, but healthcare as well,” Grenz pointed out during the Media and Bloggers Conference announcing the partnership of Allianz PNB Life and award-winning social enterprise reach52.

The two organizations are working together to promote inclusivity in insurance and address the protection gap in the country.

Insurance penetration in the Philippines is currently at 1.69%, and the protection gap is in the trillions of pesos. Fifty-three percent of Filipinos’ total health expenditures still come from their own out-of-pocket expenses instead of from protective insurance.

“Universal Healthcare is coming, but there is still a gap in protection. There is a willingness to buy, however, so we need to create a space for that,” reach52 Founder and CEO Edward Booty said.

Most Filipinos still rely on their savings and insurance to pay for their health services, and COVID-related insurance claims have so far reached PhP326.95 million

He added that the deep sector knowledge of Allianz PNB and the innovative digital mindset of reach52 can help more people in the rural areas understand the value of insurance.

The social enterprise is working toward bringing next generation healthcare systems for the 52% of the world’s population who still don’t have access to health services. They train and employ members of rural communities in providing healthcare, put up health systems, provide mobile apps and tech platforms, and establish partnerships with both the public and private sectors.

“Allianz PNB Life is partnering with reach52 to support unserved, underserved, vulnerable people in low-income populations in rural communities across the Philippines. They are a data-driven group that will give us access to the communities,” Grenz said.

Allianz PNB Life and reach52’s partnership also signals the start of Allianz Kaagapay. For this project, a member of reach52 will receive PhP25,000 worth of life insurance with COVID-19 coverage for a year for every purchase of Allianz Well! Its first beneficiaries will be from Pototan and Cuartero, Iloilo, two of the communities that reach52 first worked with in the Philippines.

With an annual plan limit of PhP100 million, Allianz Well! offers one of the highest annual plan limits in the country. It offers a second layer of protection to support other health coverages, and covers Covid-19 as well. 

The company has also embarked on a digitization of its services, with its insurance products now available via its virtual selling process.

Grenz said that it is their goal to be able to issue a policy within minutes. They are ready to offer further protection to Filipino families during this crisis. This is exactly why Allianz PNB Life developed the comprehensive coverage of Allianz Well! to meet the need of quality healthcare.

Allianz’ presence in the Philippines is backed by its strong bancassurance partnership with the Philippine National Bank (PNB) and a regional partnership with the Hongkong and Shanghai Banking Corporation (HSBC) Limited Philippines. It also has 15 agency offices across the country.

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About Allianz in Asia

Asia is one of the core growth regions for Allianz, characterized by a rich diversity of cultures, languages and customs. Allianz has been present in the region since 1910, when it first provided fire and marine insurance in the coastal cities of China. Today, Allianz is active in 14 markets in the region, offering its core businesses of property and casualty insurance, life, protection and health solutions, as well as asset management. With its more than 32,000 staff, Allianz serves the needs of over 18 million customers in the region across multiple distribution channels and digital platforms.

About Allianz

The Allianz Group is one of the world’s leading insurers and asset managers with more than 92 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 673 billion euros on behalf of its insurance customers. Furthermore our asset managers PIMCO and Allianz Global Investors manage more than 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2018, over 142,000 employees in more than 80 countries achieved total revenues of 131 billion euros and an operating profit of 11.5 billion euros for the group

These assessments are, as always, subject to the disclaimer provided below.

Cautionary note regarding forward-looking statements

The statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements.

Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group’s core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the EUR/USD  exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.