GSIS AT 86: DEKALIDAD NA PANINILBIHAN, SANDALAN NG LINGKOD-BAYAN

AS the Government Service Insurance System (GSIS) celebrates its 86th anniversary today, May 31, 2023, the institution embarks on a new chapter of leadership with President and General Manager Wick Veloso at the helm since July 2022.

From the outset, Veloso has been steadfast in his commitment to fulfill the organization's core mission, citing three critical goals that serve as pillars of his stewardship. These include growing and investing the members' contributions safely and wisely, intensifying insurance coverage for government assets and properties, and leveraging technology and digitalization to provide the best customer experience possible.

With a fresh perspective and a commitment to innovation, GSIS is poised to build on its legacy of service in more than eight decades and remain a vital institution for its more than two million members and pensioners.

GSIS Touch mobile application

THE deployment of the GSIS Touch mobile application stands out as a significant milestone in the digital transformation journey of GSIS. Developed by the GSIS IT team, the awardwinning app boasts of a user-friendly interface that guarantees optimal user experience. Its design is tailored to make it easy for members and pensioners to navigate the system and carry out transactions seamlessly.

Through the GSIS Touch, active government employees may apply for loans and claims, view their service record, keep track of their premium remittances and loan payments, and know the maturity of their life, retirement, refund and Edu-child claims, pre-need plans, and insurance policies. With over 700,000 registered users and counting, more than 800,000 loan transactions have been made via the GSIS Touch to date. Pensioners may also schedule their annual renewal of status through the app.

Starting this May 2023, GSIS, in cooperation with the Department of Information and Communications Technology, will introduce a groundbreaking feature in the GSIS Touch. Old-age, survivorship and disability pensioners can now renew their status annually without leaving the comfort of their homes, establishing a new benchmark for convenience and accessibility in service delivery.

In particular, pensioners can renew their status by using their face for authentication. The new technology checks if the face is from a real person or just a fake image. It also matches the face to the database to confirm the pensioner's identity. This ensures that only the rightful pensioners receive their pensions and protects the pension fund.

GSIS is also actively working toward expanding the app’s payment functionality to transform it into a comprehensive e-wallet platform. This will enable members and pensioners to conveniently add funds, make payments, and transfer money electronically to other e-wallets or bank accounts. The ultimate goal is to provide a seamless and secure electronic payment experience that is efficient and easy to use for the pension fund's stakeholders.

Overall, GSIS Touch is a game changer in GSIS’S enhanced customer experience, setting the standard for future mobile applications in the public sector. With its innovative features, it has become an essential tool for GSIS members and pensioners, providing them with the convenience and accessibility they deserve.

Insurance coverage

GSIS has been proactive in answering the president's call to strengthen its mandate of providing comprehensive insurance coverage for all government assets and properties.

In a landmark achievement, GSIS has reported an outstanding P6.8 billion in gross premiums written for its non-life insurance business in 2022, marking it the highest in the System's history. This feat was made possible by the issuance of 185,583 policies with a total sum insured of P2.42 trillion. Fire insurance had the highest sum insured, while motor vehicle insurance had the highest number of policies issued.

Among the measures that GSIS implemented to triple its marketing efforts for its non-life insurance products were:

• launching an aggressive nationwide campaign to promote non-life insurance products;

• personally meeting with local government officials to encourage them to insure their properties with GSIS;

• motivating insurance teams to market non-life insurance products; and

• recognizing and rewarding top performers who generated new insurance businesses during the weekly flag-raising ceremony.

In addition, GSIS'S concerted effort in reinforcing its non-life insurance business was evident through the conduct of online and faceto-face insurance marketing caravans across the country. Some 2,500 property officers participated in these events, accompanied by regular training and capacity-building workshops.

As a result, the GSIS’S General Insurance Fund's (GIF) net worth stood at a remarkable P39.21 billion, making it the highest among non-life insurance companies in 2022, a testament to the System’s commitment to safeguard the properties and assets of the government. For the first four months of this year, the gross income of the GIF already stood at P4.6 billion, a 62 percent increase over the same period last year.

In collaboration with the Insurance Commission (IC) and the Land Transportation Office (LTO), GSIS also successfully implemented a new system for the verification of motor vehicle Compulsory Third Party Liability (CTPL) insurance renewal and Certificate of Cover (COC) for CTPL insurance cover. The integration of the GSIS system to the IC-LTMS has eliminated interconnectivity fees charged for COC validation, a valuable benefit for GSIS stakeholders.

In 2022, GSIS disbursed a total of P876.65 million to 4,343 claimants for the processing of their general insurance claims. The largest number of claims filed were for motor vehicle, followed by fire and personal accident. The highest payout amount was for fire claims, followed by motor vehicle and engineering.

Investing members’ contributions

TO ENSURE that civil servants have a comfortable retirement, it is crucial to exercise prudent and strategic management of the monthly collections of approximately P23 billion in members' contributions and loan payments. To achieve this goal, GSIS is currently reviewing its investment policy guidelines. The objective is to ensure the responsible and cautious investment of its members' contributions and to identify profitable investment opportunities that generate secure and significant returns.

Further, the investments of GSIS align with the growth mindset of the government supporting its vision for nation-building. With a population of 110 million Filipinos and a median age of 26, GSIS recognizes the significance of investing in businesses and industries that will empower the young population to achieve their full potential. By doing so, GSIS can fully leverage the advantages of this "demographic sweet-spot" and secure a brighter future for all Filipinos. In line with this objective, GSIS will invest in critical sectors such as power, water, food production, telecoms, healthcare, education, banking/financial services, and consumer goods.

Recent key investments of GSIS include:

ESG Investments

STRATEGIC investments that address environmental challenges, such as climate change mitigation, renewable energy projects, and sustainable water management and conservation initiatives are critical for long-term sustainability. These investments contribute to a greener and more resilient future, ensuring the well-being of future generations.

• P2.2 billion investment in the Energy Transition Mechanism (ETM) initiative for the South Luzon Thermal Energy Corporation (SLTEC) in partnership with Ayala-led AC Energy (ACEN). ETM seeks to replace coal-fired power plants with clean power to support the country's commitment to address climate change. • P1.46 billion investment in Nickel Asia Corp. (NAC), a natural resources development company that specializes in lateritic nickel ore and has a growing interest in renewable energy development. The investment supports GSIS'S goal to grow its fund for the benefit of its members while strategically supporting the Electric Vehicle (EV) industry and the nation's development objectives. EVS contribute to mitigating climate change and improving air quality, especially when powered by renewable energy sources.

Global Infrastructure Fund Investment

IT IS worthy to note that investing in the Global Infrastructure Fund can provide GSIS with diversification, a stable income, long-term growth opportunities, protection against rising prices, and the fulfillment of contributing to a more sustainable global community.

• US$300 million investment in a global infrastructure fund, managed by Global Infrastructure Partners (GIP) based in New York. The investment will fund infrastructure projects around the world related to transportation, energy, and digitalization. In particular, GSIS has invested into the GIP’S Emerging Markets Fund, which is a specialized equity under the global equity fund.gip manages a portfolio of assets worth US$87 billion and is being led by 27 highly reputable partners in the global finance industry.

During a meeting between President Ferdinand Marcos Jr. and GIP Chairman Bayo Ogunlesi in London on May 6, the GIP expressed its commitment to invest in the Philippines. The investment aims to improve the country's transportation system by financing efficient and effective infrastructure.

As part of the meeting, President Marcos visited London's Gatwick Airport and saw firsthand its exceptional infrastructure, technology, and operations. This experience provided valuable insight into best practices that can be applied to future airport development in the Philippines, bringing the country one step closer to having a safer, more efficient, and sustainable airport system in the years to come.