Sickness and disasters will continue to pose risks post-pandemic
“Filipinos have always been highly underinsured,” shares AXA Philippines President and CEO, Rahul Hora, during a recent interview. But if there has been a silver lining to the COVID-19 pandemic, it is that Filipinos are now looking to learn more about insurance, and getting protected.
Despite frightening numbers, as of the latest count, COVID-19 has not been the leading cause of death in 2021. As of October of 2021, the Philippine Statistics Authority (PSA) reports that the number one cause of mortality in the Philippines from January to October of 2021 is the same as it usually is: heart diseases with 110,332 cases or 18.3%. COVID-19 accounted for 75,285 deaths or 12.5% of the total deaths in the country. “This means that even prior to and beyond COVID-19, there have been and always will be prevalent and real threats to life and health. These can, and all too often do, have catastrophic consequences for the underinsured,” Hora points out.
In a March 2020 article in CNN Philippines, Philippine General Hospital (PGH) physician Ronnie Baticulon writes: “In the Philippines, 6 out 10 patients die without ever seeing a doctor. When Filipinos get sick, they shoulder 56 percent of total health expenses, out-of-pocket. As a result, every year, one million patients are driven to poverty because of catastrophic health expenses.” It must be noted that these alarming figures came from pre-COVID-19 times.
COVID-19 has changed the mindset
The upside to this development is that COVID-19 has made Filipinos more aware of the inevitability of getting sick. Data from a study by NielsenIQ done during the pandemic, called “Winning in the Insurance Category during COVID-19,” has shown that Filipinos are now more willing to invest in insurance. In the new normal, 98% of Filipinos now consider insurance important, and 65% regard it as a need, not just a want.
But in the Philippines, disease is only one problem. According to the Asian Disaster Reduction Center (ADRC), the country gets an average of 20 typhoons a year, five of which are destructive. Just at the beginning of the year, AXA gave a cash donation towards relief efforts for typhoon Odette; they also gave a grace period for premiums payments so that customers and/or their families in affected areas could have a bit of financial elbow room. Apart from typhoons, strong earthquakes and volcanic eruptions are also not uncommon in the Philippines because it is located in the Pacific Ring of Fire.
Natural disasters, accidents, and the general unpredictability of life pose real risks to homes, vehicles, businesses, income, and even travel. For most working Filipinos, such assets are irreplaceable. However, with insurance, the sudden loss of any of these does not have to be drastically life-altering. “As a general rule, if you can’t afford to replace something immediately, it should be insured. To not have adequate coverage for any such asset is to be underinsured,” sums up Hora.
To learn how much insurance is needed to prevent being underinsured requires both a professionally-done needs assessment and financial planning. Needs assessment should be done regularly as lifestyle requirements and financial situations change. Getting married, buying a car, putting a down payment on a home, or just growing old and retiring are all events that can change needs. Insurance is the best way to protect family and assets, and to make sure that the next life-altering crisis does not bring financial ruin with it.
Insurance is now very accessible
In response to COVID-19, AXA greatly improved online access to services. Lack of access to insurance and related services was a big problem at the start of the pandemic. Since smartphone penetration in the Philippines is very high at 74.1% of the total population , AXA decided to engage Filipinos in the digital space for the following reasons: it is where they consume content; it is their communication space; it offers Filipinos comfort, convenience, and safety---plus they know to navigate it very well.
Emma by AXA PH is an award-winning insurance app, where customers can get advice on what plans might be suitable for them. Through Emma, they can make purchases, pay premiums, review their benefits, access health services such as telemedicine, contact emergency services, and even file claims. “Emma is the start of the solution to the problem of underinsurance. To end underinsurance, and ultimately to end the catastrophic consequences that adequate insurance can help avert, is something Filipinos need to resolve to do,” concludes Hora. “In COVID-19 as with life, we all have a role to play in protecting what matters: our lives, our health, our productivity, our country, our world.”