Manulife Philippines President and CEO points out three ways to navigate post-pandemic challenges

The insurance leader said insurers have a unique opportunity to address the health protection gap in the Philippines.

Various crises sprawled the world amidst the COVID-19 pandemic, whilst putting off track all essential services – the same fate with the insurance industry. This, in turn, has helped narrow the insurance gap amongst Filipinos.

Speaking at the 2023 Insurance Asia forum in Manila is Manulife Philippines President and Chief Executive Officer (CEO) President Rahul Hora, who pointed out that despite the severe changes of the pandemic era, the “industry is resilient because we can adapt to change.”

For Manulife Philippines, there are three ways experts can pivot through the effects of COVID-19: health, digital enablement, and diversification of savings.

The ongoing impact of COVID-19

Hora began by acknowledging the undeniable impact of the COVID-19 pandemic. He posed a thought-provoking question to his audience: "How many of you in this room believe that COVID-19 is over?"

While some attendees expressed optimism by raising their hands, Hora emphasised that, despite medical advancements, the pandemic's impact continues to ripple through various aspects of our lives.

He highlighted how the pandemic has reshaped public health, communication, travel, education, and work. It's essential to understand that the post-pandemic world is not a mere return to the pre-pandemic norm; rather, it represents a new era with distinct challenges and opportunities.

Industry resilience

The insurance industry faced unique challenges during the pandemic. Insurance distributors, vital to the industry's success, grappled with compensation issues due to the inability to bring in new advisors.

Hora also noted that because of the pandemic, the sector has been considered an essential service. It has enabled digital selling, and advisors have been viewed as “economic frontliners.” They quickly adapted by shifting to digital communication with customers, resulting in a positive change in consumer buying behaviour.

Throughout challenges during the pandemic, the insurance industry demonstrated resilience.

Hora commended the industry's essential service status during the pandemic, allowing it to continue operations. Regulators facilitated virtual selling and temporarily allowed insurers to license advisors independently, enabling the industry to adapt swiftly to the crisis.

Crises like COVID-19 often catalyse innovation. Such challenges prompt industries to redefine themselves and their business models, creating opportunities for growth and adaptation.

He drew parallels to the transformation of the automobile industry as it shifted towards electric vehicles due to increasing environmental consciousness.

Expanding on the future of the insurance industry, Hora discussed three key areas of focus: health, digital enablement, and diversification of savings.

Health insurance has gained prominence in recent years, mainly due to the rising health inflation and high out-of-pocket expenses in the Philippines.

The COVID-19 experience further underscored the importance of health protection. Insurers have a unique opportunity to address the health protection gap and meet the evolving needs of customers.

Digital transformation is sweeping across all industries, and insurance is no exception. Hora envisioned a "phygital" future, combining physical and digital touchpoints to reach customers more effectively. Digital platforms can enhance awareness, interest, and the entire customer acquisition journey, reducing reliance on physical intermediaries.

Lastly, Hora shared how the pandemic highlighted the need for individuals to build up on their savings. The insurance industry plays a crucial role in addressing the savings gap, by diversifying investment opportunities across asset classes and geographies, considering today’s highly volatile and uncertain environment.