Allianz PNB looking to offer microinsurance products

ALLIANZ PNB Life Insurance, Inc. plans to venture into the microinsurance business to help narrow the country’s protection gap.

In an interview, Allianz PNB Chief Finance Officer Efren C. Caringal said the joint venture between German insurer Allianz SE and Lucio C. Tan-owned Philippine National Bank (PNB) is “aspiring” to launch microinsurance products in the country to help bridge the country’s protection gap or the amount of insurance needed to be protected from asset loss.

“Allianz is very big in microinsurance. I think we’re one of the biggest [globally], particularly in markets like Indonesia and India. Our aspiration is to be able to do that also in the Philippines,” Mr. Caringal told BusinessWorld in an event in Makati City last week.

The Allianz PNB official said there is a large potential to insure more Filipinos though microinsurance.

“One of our corporate advocacies is really on the financial inclusion. There is a large potential to insure more Filipinos... and Allianz is keen to contribute towards that goal,” Mr. Caringal added.

In a previous media briefing, Allianz PNB President and CEO Olaf Kliesow said the country’s protection gap amounts to P1.2 million per household.

Mr. Caringal noted that the planned microinsurance products cannot be launched as early as this year as it is still ironing out partnerships with digital platforms to expand its distribution network.

“Not this year. We’re reaching out to the lower income markets through the [digital] platforms. These platforms typically get access to the class C and D of our society,” Mr. Caringal said when asked when the insurer will start offering microinsurance products.

Allianz PNB is planning to partner with online platforms with a large customer base as part of its “digital by default” strategy.

“Going digital enables our agents to service clients better. It also enables our products and propositions to be accessed by customers at their convenience. It’s an enabler,” the insurer’s chief finance officer added.

Aside from this, Allianz PNB is also expanding its agency channel to achieve its target to hit 3,000 agents by 2020.

“Allianz entered the market two years ago. So far, we’ve onboarded more than 600 agents. We’ve attracted young people in a short period.”

The German insurer completed the 51% acquisition of PNB Life Insurance, Inc., the life insurance arm of PNB, in June 2016.

According to latest Insurance Commission data, Allianz PNB was the twelfth-largest life insurer in terms of premium income with P5.3 billion as of end-2017.