First quarter provides momentum to insurance industry
The global insurance industry has shown some promise during the beginning of 2013. The industry, as a whole, has been struggling to overcome the challenges it faced over the past few years, many of which came at the hands of unexpectedly powerful natural disasters. In the Philippines, new reports from Emmanuel F. Dooc, Insurance Commissioner of the Philippines, suggest that the first quarter of 2013 was very beneficial for the country’s insurance industry. Commissioner Dooc provided his report to a recent United Nations forum focused on the state of the insurance industry.
Strong economy behind growth in insurance sector
According to Dooc, the insurance industry in the Philippines showed strong signs of growth, largely due to the growth that the country’s economy is experiencing as well. The country’s economy is expected to expand by as much as 7% by the end of 2013. As the economy grows, the population becomes more affluent, providing more people with access to insurance coverage. The insurance industry is currently poised to accommodating growing demand by offering new policies throughout several sectors.
Insurers begin to overcome impact of natural disasters
The insurance industry in the Philippines, as well as elsewhere, has had to deal with the impact of several powerful natural disasters over the past few years. These disasters have taken a toll on the insurance industry, forcing many small insurance providers out of business. Larger companies have fared well in the wake of these disasters, and consumers have been growing increasingly convinced of the importance of comprehensive insurance protection. As more consumers purchase coverage, the insurance industry is beginning to show strong signs of aggressive growth.
Central bank provides more fuel for growth
The financial sector in the Philippines has begun to adjust to the prosperity being seen in the insurance industry. The central bank has begun to lower interest rates on special deposit accounts, which are often used by insurance companies. This has helped provide more momentum to the continued growth that the insurance industry is expected to see in the coming months.