InLife expands distribution to boost Filipinos life insurance access

Life insurance penetration remains low in the Philippines.

The life insurance industry in the Philippines is poised for growth, driven by an expanding middle class and rising disposable incomes. According to Raoul Antonio Littaua, President and CEO of Insular Life (InLife), the demand for traditional life insurance products is seeing a resurgence as consumers prioritise guaranteed benefits and protection over other options.

“Total premiums are up by 12% so far, and the growth is really in traditional products,” Littaua noted, explaining that the shift away from variable unit-linked (VUL) products reflects consumer preferences for more stable returns. 

The local stock market's underperformance over the past five years may have contributed to this shift, as customers seek safer, more reliable options amid economic uncertainty.

Littaua highlighted that the COVID-19 pandemic has reshaped priorities in the life insurance market, with more people now focusing on protection from catastrophic illnesses and the financial risks associated with longevity. 

With the Philippines’ predominantly young population, insurance companies are now focusing on the “living benefits” of life insurance, catering to millennials and Gen Zs, who will soon make up two-thirds of the population. Littaua pointed out that a female born in Singapore today could expect to live up to 100 years, signalling the growing importance of longevity protection.

Despite the positive outlook, Littaua acknowledged that life insurance penetration in the Philippines remains low. “As a percentage of GDP, life insurance penetration in the Philippines is below 1.7%, which really lags in comparison to other countries and other areas,” he said. Littaua also noted a significant protection gap, estimating that Philippine households are underinsured by around PHP 1 million per household.

In response to this gap, InLife has been actively expanding its distribution reach across the country. The company leverages three main distribution channels: agency, bancassurance, and group insurance.

Littaua emphasised that group insurance is currently InLife’s fastest-growing channel, with its Corporate Solutions business expanding by 65% this year. “Our employee benefits, Corporate Solutions, and business are doing very well... and we intend to maintain that momentum.”