A Case Study of the Philippine Insurance Business

Save Insurance Auto InsuranceThe Philippine insurance industry is one that we can all use to gauge how the industry in general moves over smaller markets. Over the past 2 years, the Philippine car industry was on a tear. Car sales were back to pre-1997 crisis levels. With economic expansion showing no signs of a let up, the insurance industry expects brighter days ahead. It has many players (Asian, European, American based) with Toyota accounting for the lion share of the market. It generates substantial revenues for the financial space particularly thrift banks or non-life insurers.

At present, there are 87 insurance providers in this multi-billion industry in the Philippines, and still expanding.  Most are affiliates to large banks while the rest are mid size to mom & pop operators.  Most use the broker to customer approach, which means broker fees are tacked on the insurance package. Direct Link is one insurance provider that offers the first direct to user auto insurance in the country back in 1998.  The scheme excludes the middleman from the deal; thus providing a cheaper policy to Filipino car users. It has a call center facility that addresses the concerns of its current and prospect clients. Like other insurers, it offers the same comprehensive package but at a big discount.