SUN LIFE of Canada (Philippines), Inc. (Sun Life Philippines) will ramp up its technology investments to further expand its reach via online distribution platforms and create specialized products to cater to Filipinos’ varying insurance needs.
“Tech is going to be one of my focus areas… I would like to leverage the digital savviness of Filipinos. The use of technology to make higher value transactions, it’s still not yet there, especially as insurance would be a higher value transaction. But I want to already be in that space where they think of Sun Life once they are ready to make a high-value transaction,” Sun Life Philippines President and incoming Chief Executive Officer (CEO) and Country Manager Jonathan Juan “JJ” D. Moreno told BusinessWorld on the sidelines of an event this month.
“I want to be able to catch that wave because it’s going to be very difficult if that’s the only time I will build a platform once the market is ready for those kinds of things.”
He said younger Filipinos who are digital natives are becoming increasingly aware of the importance of financial protection.
“We’re seeing a trend. We’re seeing that more and more, there are younger cohorts, young professionals actually buying insurance, realizing that it’s an essential expense,” Mr. Moreno said.
While these individuals usually do their research on insurance via digital platforms, they still prefer to consult with human financial advisors and transact in person when they want to avail of policies, he said.
“Some do not want to be approached by an agent immediately. They’ll do their own research, they’ll do everything, they’ll use AI (artificial intelligence) to compare the products, and then when they’re ready, they call an agent.”
They’ve seen the same trend among high-net-worth individuals, he said.
Recognizing this consumer behavior, Mr. Moreno said insurers can boost their digital distribution by first offering simple, straightforward, and lower value products that are tailored for specific needs that clients would be confident to buy via online channels.
For their part, Sun Life Philippines plans to launch products targeting employees and professionals, the high-net-worth segment, and business owners this year.
“So, it would be correct to say that we will launch low-value products… The products we will be launching will be specifically tailored to address a particular segment.”
He said there has been strong demand for traditional life insurance and variable unit-linked products among Filipinos.
“After the previous year, there was a shift towards more traditional products in terms of product creation. That’s due to global headwinds, but it’s still just going down,” Mr. Moreno added.
At end-September, Sun Life Philippines topped the life insurance sector with a premium income of P44.73 billion. — A.M.C. Sy