Over the past few years as a financial advsior, we have had some clients who before buying life insurance with Insular Life ask whether the company is stable or not. So to answer that here are the reason why Insular Life is a stable company:
1. InLife is the 3rd Largest Company based on Insurance Commission website at www.insurance.gov.ph, there are 30+ Life Insurance companies in the Philippines. For more details visit this blog.
2. InLife has sufficient and strong legal policy reserves because the Insurance Commission requires that there is a reserve in case of liquidity problems. You can see these policy reserves in the annual report of Insular Life here.
3. InLife has survived a lot of calamities and wars and has still outgrown them
a. The only life insurance company in the Philippines that operated during the World War 2, other companies stopped operating or went back to their home country
b. The first life insurance company to open to the public after the Tacloban Typhoon
c. The only life insurance company that gave FREE COVID Financial Assistance to their Financial Advisors while other companies LOANED money to their financial advisors
4. For VUL Funds, the money is not with Insular Life but with the custodian bank (HSBC). Assets are not part of Insular Life but are in a separate balance sheet. So if in the very unlikely chance that the company goes bankrupt, the creditors can only touch the money of Insular Life and not the money of the VUL investors.
5. InLife’s auditor is SGV which is the #1 Auditing Firm in the Philippines. To know more about SGV please visit their website here.
6. Insurance companies are not only monitored by SEC but also monitored by the Insurance Commission. This grants an additional layer of protection to the public since most companies are only monitored by the SEC or DTI. Further all Life Insurance Company Licenses must be renewed every year. If there are any problems or complaints against the company the license will not be renewed.
7. Insular Life has a reinsurer which is “Munich Re” which is one of the largest reinsurers in the world. A reinsurer according to investopedia is a company that provides financial protection to insurance companies. Reinsurers handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business than they would otherwise be able to. Reinsurers also make it possible for primary insurers to keep less capital on hand needed to cover potential losses. For more information on Reinsurers visit investopedia.
8. Insular Life being the only 100% Filipino owned Life Insurance Company in the Philippines means that the assets are here in the Philippines whether they are land, building, cash, investments, etc. This means that you can be assured that whatever happens to other countries (like war or political problems), we will not be affected by external events because our assets are in the Philippines.
9. Lastly, InLife though a Filipino company is being led by a team of experienced team of managers. The company chairman of the company is no less than Ms. Nina Aguas. For more info about it please visit here.