Insurance Commissioner Reynaldo Regalado; Mr. Richard Lim, President of the Philippine Life Insurance Association; its esteemed officers and members; ladies and gentlemen: good evening.

Let me begin by commending the 33 strong member companies of the Philippine Life Insurance Association for the millions of Filipino lives you have touched and the futures you have secured.

For over seven decades, you have not only safeguarded the financial well-being of countless Filipino families but contributed significantly to our nation’s economic security. With that, maraming maraming salamat po sa inyong dedikasyon.

It is very encouraging to see that, as of last year, your collective efforts have provided coverage equivalent to about 84 million lives.

This is a remarkable 16 percent increase from the pre-pandemic figure of 72 million.

Notably, about 44 million of these lives are covered by micro-insurance products.

Furthermore, the average amount Filipinos invest in life insurance has risen to 2,745.7 pesos last year from 2,182.8 pesos pre-pandemic.

All these show our progress in expanding access to affordable life insurance products for low-income households.

More importantly, these indicate a growing awareness and appreciation among Filipinos of life insurance as a crucial tool for financial stability.

The encouraging figures are reflective of the country’s strong labor market and growing middle class.

Our unemployment and underemployment rates are at historic lows.

With 49 million Filipinos employed as of May 2024, 63 percent are engaged in formal and stable jobs. This makes it more feasible for our workers to invest in insurance products for themselves and their families.

Additionally, the Philippines’ all-time high gross national income per capita of 4,230 US dollars in 2023 signifies profound improvements in our people’s standard of living.

With our projected ascent to becoming an upper-middle-income country next year, more Filipinos will have greater disposable income to avail themselves of financial protection.

Our main focus now is to sustain this momentum to accelerate the reduction of our poverty incidence to only 9 percent by 2028. This is our single most important target.

In 2023 alone, we successfully lifted 2.5 million Filipinos out of poverty, lowering the poverty rate to 15.5 percent.

To meet our ambitious goal, we must elevate 10 million more Filipinos above the poverty line in the next four years.

And this is where the life insurance industry plays a critical role.

Risk is a significant driver of poverty, and adequate insurance coverage is among the powerful tools for mitigating this challenge.

Therefore, all of you here tonight hold key positions in winning our battle against poverty.

According to the 2024 World Insurance Report, life insurance penetration in the Philippines remains relatively low at 1.2 percent in 2023, compared to the global average of 2.9 percent and 2.2 percent in emerging Asia.

This is both a challenge and an opportunity—a call to action for the industry to step up efforts in ensuring that every Filipino, especially those in low-income brackets, is protected and shielded from falling below the poverty line.

My challenge now to PLIA is this: Let us aggressively innovate, educate, and advocate life insurance in a manner that every Filipino recognizes its indispensable importance. As your theme tonight so aptly states: “Reach out, reach far, and reach wide”.

But perhaps it is high time to redefine life insurance in the hearts and minds of our people. That it is not a mere transaction but a selfless act of love that they can bestow upon their families.

Hindi lang ito dapat tingnan na isang gastos. Hindi lang ito para sa may-kaya. At hindi lang ito napapakinabangan kapag pumanaw na ang isang mahal sa buhay.

Our people should understand that life insurance is about legacy planning. It not only protects but empowers their loved ones to build a better future.

These investments are stepping stones towards getting higher education, owning a home, or starting a small business—all meant to help more Filipinos live healthier, longer, and better lives.

Today presents a golden opportunity that the life insurance industry must seize.

Aside from our promising labor market, the Philippines enjoys a demographic sweet spot, with a median age of only 25 years old. And we are projected to become the world’s 13th-largest consumer market by 2030.

Favorable factors are in place to provide greater headroom for the industry to increase its market penetration. This is our moment to turn life insurance into a mainstream consideration and a basic necessity for Filipinos.

The 33 members of PLIA should be the frontrunners in transforming the industry into a key poverty-fighting force.

Let us break free from conventional solutions and innovate beyond boundaries to make products simpler and more affordable, responsive, customer-centric, and digitally integrated.

Insurance should no longer be seen as a standalone product. It must be a holistic solution that includes protection, savings, and investments tailored to our people’s evolving life stages.

And we must actively promote micro-insurance to ensure that every household is capable of securing a decent future without the need for immense wealth.

Above all, the industry must constantly prove itself worthy of its clients’ trust and expectations by continuing to provide them with the best service possible, delivered with both passion and compassion.

On the part of the Department of Finance, be assured of our strong commitment and support to the insurance industry in closing the protection gap.

The Insurance Commission, which is under our supervision, is steadfast in instituting regulatory measures and enforcement mechanisms to ensure the financial stability of its regulated entities and protect the public.
As a member of the Financial Inclusion Steering Committee, the DOF has been working towards enhancing our National Strategy for Financial Inclusion to achieve broad-based growth and financial resilience through insurance technology.

To encourage more participation, the DOF has refined the Passive Income and Financial Intermediary Taxation Act to harmonize and reduce the tax rate of insurance products to two percent.

This, along with ongoing reforms for ease of doing business and inclusive capital market development, should foster an environment where life insurance companies can flourish and break the cycle of poverty in the country.

So, let us not waste any opportunity to secure more lives from today onwards. The urgency of our mission demands it.

Together, let us build a nation where every Filipino has the security and opportunities they rightfully deserve.

A nation where we have an empowered generation of Bagong Pilipino na handa, walang pangamba, at kampanteng haharapin ang kaniyang kinabukasan.

A nation where every Filipino is not only a beneficiary but a driving force of our economic growth and prosperity.

Sa tulong niyo, sama-sama po nating makakamit ang mga ito sa Bagong Pilipinas.

Maraming salamat po. At mabuhay kayong lahat.