Philam Group strengthens program on financial literacy-A A +A
Sunday, August 3, 2014
THE Philam Group is beefing up its financial literacy program this year to help Filipinos make the right financial decisions in the midst of a robust economy.
Rolan Enriquez, vice president and director of Agencies for Central East Visayas and Mindanao of Philam Life, said the goal of their financial literacy program is to enroll as many Filipinos as possible to the insurance and investment industry as a way to help them grow their hard-earned money.
He said they see financial awareness as a tool to help people understand money management better so they can make better decisions for themselves and their family.
“We will teach people how they can convert their hard-earned money to asset or investment, this way we can help improve their economic well-being,” said Enriquez.
He said that despite the stellar growth of the Philippine economy, many Filipinos have not turned yet to insurance and investment products to grow their money. He said most still opt to put all their money in banks.
“Deposits are good but Filipinos need to also understand the value added if they start to invest their money,” Enriquez said. He noted that insurance and investment is only a tenth of the almost P7 trillion deposits in bank.
The Bangko Sentral ng Pilipinas reported that savings and time deposits grew by 39.3 percent in the first quarter this year to P6.2 trillion from a year ago.
The Philam Group intends to expand their investment forum series not only in Manila but also in provinces, as a way to expand financial awareness.
Enriquez said part of the process is to conduct financial advising to clients to determine their investment goals and which types of product would help them achieve that goal.
“It isn’t only about getting higher returns at the end of the day but how this investment product is linked to their goals,” he said. “People need to understand that there are many factors to be considered in making investments, such as personality, product and the appetite.”
Philam Life, which is one of the biggest players in the country’s insurance sector, expects the industry to enjoy a sustained growth in premium collection this year as demand for insurance products increase due to growth in household incomes and increasing appreciation by Filipinos on the value of getting insured.
In 2013, total premiums paid to the life insurance sector reached P169.8 billion, according to the Insurance Commission (IC). This represented a 41 percent growth from the P120.3 billion in premium payments in 2012. Its total net income grew by 31 percent to P13.8 billion while total investments grew by seven percent to P486.9 billion.
The IC estimated that the combined performance of both life and non-life sectors hit the target of P200 billion last year. For 2014, IC projects a growth of 15 percent to 20 percent for the entire insurance industry.
Published in the Sun.Star Cebu newspaper on August 04, 2014.