Out of pocket healthcare expense, by itself already problematic for the greater number of Filipinos, is bound to get worse in the years ahead, according to an assessment by the insurer AXA.
The insurer, citing statistics from the Philippines Statistics Authority, said those able to finance their illness collectively spent P453.2 billion pesos in 2021 alone.
Its top executives who are in Manila said the typical Filipino is awfully underinsured based on the country’s low insurance penetration rate of only 2 percent versus the global norm of 7.3 percent, making the population only one health emergency away from financial ruin.
“It is this high-risk, low-insurance spending scenario that makes Filipinos highly vulnerable to financial losses in the face of life’s uncertainties,” AXA Global CEO Thomas Buberl said of the local insurance market.
According to him, the practical impact of the low insurance penetration rate in the country is real for each Filipino who spends a sizable portion of his income by paying out of pocket when in fact this does not have to happen in the manner it does.
“At AXA, we firmly believe that while life is full of risks, the future shouldn’t be one of them. This is why we are doubling down our efforts to protect customers and empower them to achieve financial stability and turn their dreams into more attainable life goals,” he said.
AXA in the Philippines the past three years, he said, has not only introduced more flexible products but has also launched a mobile app, Emma by AXA PH, to manage transactions related to AXA policies.
The app serves as partners for customers in health and financial wellness with features allowing policyholders to conveniently search for accredited hospitals, clinics, and doctors, book teleconsultation services or adjust the amount of their investment funds, among other services.
The app makes more accessible the various services offered by the insurer and has transformed the way the insurer interacts with customers, said Hassan El-Shabrawishi, AXA international markets CEO.
AXA Philippines CEO Bernardo Rafael Serrano Lopez noted only insurance provides the financial safety net insuring that a crisis such as the death or severe illness of a breadwinner and the destruction or theft of a property does not spiral into financial ruin.
“This underscores the role and purpose of AXA in the Philippines – to protect more and more Filipinos. This visit by our global leaders shows AXA’s commitment to the country as a key insurance market,” Lopez said.
