Volatility boosts protection plans

PRU LIFE Insurance Corp. of UK Philippines expects growing consumer interest in traditional life insurance products as market volatility worsens as a result of war in the Middle East.

“The markets have obviously been volatile, and that would also mean customer interest and appetites would also have changed to products that offer health and protection that are not tied to market [swings],” Pru Life UK Senior Vice-President and Chief Actuary Glolibeth L. Villahermosa told a news briefing on Thursday.

Traditional policies, which offer guaranteed protection without investment risk, are expected to gain traction as investors and policyholders reassess risk amid surging oil prices and expectations of faster inflation.

“The more we face these types of risks or vulnerabilities, the more [people] understand what protection really means,” Pru Life UK Chief Investment Officer Princess Charm Baun Balingit said, adding that the impact on overall demand should remain manageable.

“That’s where we come in. But hopefully, it will not really greatly impact us,” she added.

The pivot reflects a broader trend in the Philippine insurance market, as investors and policyholders respond to heightened uncertainty from global energy and financial shocks.

Traditional life insurance offers a hedge against market swings, appealing to consumers looking for stability in times of volatility.

The company has begun rebalancing its product portfolio. In 2025, only 15% of new business came from traditional products, a share set to expand with planned launches of guaranteed protection policies this year.

“For our customers, we are seeing that [traditional products] should grow in the coming year,” Ms. Villahermosa said.

Pru Life UK leads the Philippine life insurance market in terms of new business annual premium equivalent, recording P10.05 billion in 2025 and capturing a 13% market share. Total premium income last year reached P52.8 billion.

Ms. Villahermosa said the insurer would continue launching more traditional products this year to meet market demand.

“For the longest time, we have mainly been an investment-linked product company, so that product portfolio is still strong,” she said. “But we do see the value of offering more traditional products and more guarantees.” — Aaron Michael C. Sy