The Aboitiz Group has entered the life insurance market in a joint venture with Singapore Life Private Ltd.
Aboitiz Equity Ventures Inc. and Singlife have teamed up to form Singlife Philippines to offer innovative financial solutions that help Filipinos manage, grow and protect their money.
Singlife holds a 65% stake in the joint venture company while AEV takes a 15% ownership while another company, Di-Firm owns 20.
New technologies are paving the way for a revolution in the way companies interact with their customers, shaking up the traditional models across distribution, sales, products and services.
“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,” AEV said in a regulatory filing.
According to the Philippine Insurance Commission, the life insurance market has grown significantly over the past five years with total premium income rising nine percent per annum and sales of new policies growing at 15 percent per year.
However, the penetration of individual life insurance is still low at around six 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.