Insurance firm rises above market volatility
The global economy in the second half of 2015 and towards the earlier part of 2016 did not portend well with many businesses. The insurance industry was not spared from a number of global and political events that caused the markets to slow down. However, Beneficial Life Insurance (BenLife) moves to the beat of the capital markets, and steers its rudder towards becoming the preferred provider of truly innovative, responsive and customized insurance products and services to Filipinos come 2020.
BenLife is a life insurance provider which focuses more on the B and C market segments. It has been around for decades and generations. Now on its 56th year, the company can boast of stability through the years – having complied with the Insurance Code requirements on capitalization and networth, covering more than a million policyholders and affirming a strong stakeholder relationship.
Just after the company celebrated its 55th year, the global economy faced multiple challenges on different fronts. Global financial dynamics were altered by some events such as the devaluation of the Yuan in August 2015 and more recently the Brexit. For insurance companies such as BenLife, how the markets react to this crisis foretells how they will fare. Jaimekeen BenLifeon C. recalling FernandezEVP the and events,is COO very saying, “What I’m worried about last year was the capital markets because it took a very bad hit. The capital markets were not as predictable as it used to be so we have to be very careful in treading the capital markets.” Insurance companies invest in bonds, stocks and equities. If financial markets take a nosedive, investments reduce in value and are, thus, at risk. BenLife, according to Fernandez, has dealt with the economic challenges by remaining conservative. “Moving away from risky assets to the more stable ones, that’s the position we’ve taken.” He mentioned that they have realigned their assets by moving away from equities and instead buying more investment-grade bonds. Although these events have affected BenLife’s growth in the past fiscal year, this year Fernandez is more optimistic in the financial part of the business while being concerned with compliance issues. “We are surviving on our own abilidad,” referring to the traditional way of selling but also added imaginative and creative ways of prospecting and always keeping in touch with their client base.
This year BenLife will start to offer and provide health insurance product through Benlife Care. The Insurance Commission has already given its go signal to Benlife Care. With the combined life and health products, the client gets life and medical protection that is more affordable. This can be seen in terms of improved tax and operational efficiency. The one-stop-shop feature allows the clients to deal with just one institution and agents can offer both products to the prospective client. As seen through the lens of Benlife, value comes in terms of this: “for the same amount of money, you can buy better protection, which is what the public wants,” said Fernandez.
Benlife clients – government employees, policemen, army, teachers and the general public – can enjoy the flexibility of salary deduction packages, short payment terms or a one-time pay for a guaranteed coverage for life. All they have to do is go to the nearest BenLife branch.