Aboitiz Group listed firm Aboitiz Equity Ventures, Inc. (AEV) and Singapore Life Private Limited (Singlife) have partnered to establish a new digital life insurance company in the country.
The joint venture, Singlife Philippines, majority of which is owned by Singlife (65 percent) with partners Di-Firm (20 percent), and AEV (15 percent), is set to make insurance and financial products more accessible to Filipinos nationwide.
With Singlife’s unique fintech expertise in digitalizing life insurance offers and with AEV’s strategic position across industries in the local market, Singlife Philippines is poised to claim its share in the local life insurance market.
According to the Philippine Insurance Commission, the life insurance market has shown significant growth over the past five years with total premium income growing 9 percent per annum and sales of new policies growing at approximately 15 percent per year.
However, the penetration of individual life insurance is still low at around 6 percent of the insurable market. This is expected to increase to 12-18 percent in the medium-term, fueled by an emerging segment of people purchasing policies for the first time.
A substantial part of this segment consists of people between 25 to 50 years old, with net income between P25-50K per month and a preference for online and mobile services.
For this new generation of mobile-first consumers already booking rides and purchasing everyday goods online, Singlife Philippines believes it can also fulfill their financial planning needs through a mobile app.