AIA Philippines chief financial officer Gary Ogilvie said that the insurer is bullish about the growth prospects of not just the firm, but the country’s sector, despite the current global economic slowdown being experienced worldwide.

Ogilvie said that while inflation remains a concern for businesses across different industries, the country’s low penetration for health insurance could also provide opportunities for long-term growth.

"From an economic perspective, this is clearly good that we're emerging from the pandemic. People are starting to have more confidence. Things are opening up. However, I think inflation remains a concern as to exactly how that's going to play out. So that's really going to affect affordability in the middle market, which [is]probably where the long-term growth is in terms of the insurance penetration rate," Ogilvie said in a news release.

That said, the insurer will focus their operations on the higher-net-worth area, while laying the ground for the middle market and covering it over time as the Philippines recovers on the back of strong GDP growth. After that, AIA Philippines will continue to get into balanced delivery “across financial metrics,” he said.

As for the greatest barrier for the industry now, Ogilvie said that getting through and producing affordable and accessible health care to the Philippine market remains a challenge overall.

Earlier this year, AIA Philippines chief executive officer Kelvin Ang suggested tax rebates for insurance premiums as a way to increase insurance penetration in the country.

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