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PHL stocks may rise further on cautious optimism

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PHILIPPINE SHARES could rise further this week as the market remains “cautiously optimistic” about a long-term deal between Iran and Israel and developments ahead of the end of the 90-day pause in the Trump administration’s plan to impose “reciprocal” tariffs on its major trading partners.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) returned to the 6,400 level, jumping by 1.22% or 77.62 points to end at 6,408.27. The broader all shares index also rose by 0.84% or 31.61 points to 3,792.06.

Week on week, the PSEi went up by 1.08% or 68.5 points from the 6,339.77 close on June 20.

“Global markets wrestled with moderate growth outlook and volatile oil prices, amid a still cautious Federal Reserve with the ongoing ceasefire between Israel and Iran,” online brokerage 2TradeAsia.com said in a market note.

“The local market managed to bounce back last week as Middle East tensions eased. However, trading was still thin, reflecting tepid market confidence, with many still on the sidelines amid lingering uncertainties,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

A ceasefire to the 12-day Israel-Iran conflict went into effect early last week, Reuters reported. Israel launched the air war on June 13, attacking Iranian nuclear facilities and killing top military commanders as well as civilians in the worst blow to the Islamic Republic since the 1980s war with Iraq.

Iran retaliated with barrages of missiles on Israeli military sites, infrastructure and cities. The United States entered the war on June 22 with strikes on Iranian nuclear facilities.

For this week, the mood could be “cautiously optimistic,” Mr. Tantiangco said.

“While Middle East tensions have subsided, the relation between Israel and Iran remains uncertain. This is expected to keep investors on a cautious stance. On a positive note, the easing of global oil prices and the rebound of the local currency may continue to provide support to the local bourse,” he said.

“Investors are also expected to deal with the uncertainties over US President Donald J. Trump’s July tariff deadline. Hopes that the said deadline would be extended may give sentiment a boost.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail that the PSEi’s immediate support is at 6,105-6,200, while immediate resistance is at 6,500, with sentiment expected to get a boost if the situation in the Middle East continues to improve.

2TradeAsia.com placed the PSEi’s immediate support at 6,300 and resistance at 6,500-6,550.

“Global markets are navigating persistent geopolitical currents, even as the immediate Middle East conflict has slightly de-escalated; this fragile stability, however, does not erase the underlying vulnerability of global supply chains,” it said. “Investors must grapple with the monetary policy environment increasingly constrained by geopolitical realities and the unpredictable, yet impactful, weaponization of trade.” — R.M.D. Ochave with Reuters

CSP could be waived for first nuclear project

PNRI.DOST.GOV.PH

THE Department of Energy (DoE) is looking into exempting the first commercially developed nuclear power plant from the competitive selection process (CSP), citing the need to ensure a market for the plant’s capacity.

“DUs (distribution utilities) are mandated to ensure a ready market for available capacities from the first commercially developed nuclear power plant, which shall be exempt from (having to go through CSP),” according to a DoE draft circular.

DUs may apply for priority access to the capacity, provided that they demonstrate both technical and financial capacity to enter into long-term power purchase agreements with the nuclear power plant; serve a sufficiently large consumer base; and have power supply shortages that could be alleviated by new baseload generation.

The DoE noted that other DUs can still tap nuclear plant capacity once the priority allocations are filled.

The DoE’s proposed framework for the integration of nuclear energy in the generation mix forms part of the Clean Energy Scenario (CES) of the Philippine Energy Plan 2023-2050.

“There is a need to establish a well-defined framework to instill potential investor interest for the first nuclear power generation facility in the Philippines, while at the same time ensuring a seamless and efficient integration of nuclear energy in the power generation mix,” the DoE said.

The CES assumes commercially operational nuclear plants by 2032 with at least 1,200 megawatts (MW), increasing to 2,600 MW by 2035 and 4,800 MW by 2050.

“The commercial development of the pioneer nuclear power plant in the Philippines represents a significant milestone in the Philippine energy landscape, resulting in anticipated lowering of electricity costs, and a positive major environmental impact, making it a key player in the country’s commitment to achieving a low-carbon economy,” the DoE said.

Pioneer projects are eligible for priority dispatch regardless of the nuclear technology to be employed.

Under the proposed framework, the DoE is tasked with looking for options for financing and funding, in coordination with the Nuclear Energy Program – Inter-Agency Committee, Department of Finance, Department of Economy, Planning, and Development, the Maharlika Investment Corp., and other government agencies.

The DoE will also plan with the transmission network provider and system operator to ensure the availability of transmission capacity within the delivery date of the first commercial nuclear plant.

The Energy Regulatory Commission is also tasked with formulating the rules and guidelines to determine the appropriate price-setting scheme applicable for the nuclear plant.

The DoE said that the pioneer plant will be automatically certified as an energy project of national significance, entitling it to the rights and incentives outlined in Executive Order No. 30 and other DoE issuances.

“The integration of nuclear energy into the power generation mix represents an innovative initiative, which is poised to stimulate local economies, create significant employment opportunities, attract investment, and lead to the creation of new economic opportunities and economic growth,” the DoE said. — Sheldeen Joy Talavera

Century Pacific Food agrees to P1 reduction in price of its sardines

SARDINE producer Century Pacific Food, Inc. (CPFI), whose products trade under the Ligo and 555 brands, said it is cutting prices by P1 per can starting July 1.

In a statement over the weekend, CPFI, said the price rollback is intended to “ease the burden on consumers.”

“There will be a P1 rollback per can on all Ligo and 555 sardines starting July 1,” the company added.

According to the company, it has achieved cost efficiencies in its value chain. CPFI sells hundreds of millions of cans of 555 and Ligo sardines annually.

“In our small way, Ligo and 555 brands want to ease the burden on consumers and support them during these times,” Ronald M. Agoncillo, vice president and general manager of CPFI Sardines, said.

“Cost-effective actions, such as our continuous efforts to maximize the value chain, working with different communities, and alignment with stakeholders, allowed us to give maximum value to our customers while maintaining high product quality standards,” he added.

Last week, the Department of Trade and Industry (DTI) said that it will monitor prices to deter any unjustified price hikes.

It also said that it will be working with manufacturers to help mitigate the effects of rising fuel prices arising from the conflict in the Middle East.

Last week, the DTI said the sardine canning industry committed not to raise prices. — Justine Irish D. Tabile

New palay-buying rules ensure registered farmers benefit from support price — SINAG

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE National Food Authority’s (NFA) decision to procure palay (unmilled rice) only from registered farmers addresses the longstanding problem of ineligible sellers receiving the government support price, industry officials said Sunday.

“We welcome the cleansing being done by the current NFA leadership in ensuring that only legitimate farmers get subsidies and support from government,” Jayson H. Cainglet, spokesman of the Samahang Industriya ng Agrikultura, said via Viber.

“That had been a decades-long problem plaguing the NFA.”

The bigger concern remains the capacity of NFA to intervene in the market effectively, he said.

The grains agency may have exceeded its target procurement but its procurement volume is less than 5% of the palay harvest, he noted.

The NFA offers a palay buying price typically more favorable to farmers than that on the open market, preventing farmers from being totally at the mercy of commercial rice dealers. The constraints, however, are the NFA’s procurement budget and limited storage capacity.

Under the new rules, only verified farmers listed on the government’s official registry RSBSA (Registry System for the Basic Sectors in Agriculture) or those who can show a certificate from their local government can sell palay to the NFA.

Each NFA branch must submit a monthly list of those who sold it palay and how much, for prominent display at the branch.

With farmer consent, branches can also share the purchase data on NFA social media, subject to privacy regulations.

Each NFA warehouse has been tasked with maintaining a table from where farmers’ groups can observe the buying process.

Former Agriculture Undersecretary Fermin D. Adriano noted that there had been allegations that the NFA has been buying from trader-consolidators and their allied cooperatives in Ilocos, Cagayan, and Central Luzon.

“This limits the palay support price offered by NFA to a few beneficiaries,” he said via Viber, calling the NFA’s latest move a “good initiative.”

“The challenge will be how extensive the buying will be given NFA’s relatively limited budget for this purpose,” he said.

“What percentage of the total palay harvest will it be able to buy from small farmers?”

Federation of Free Farmers (FFF) National Director Raul Q. Montemayor said the list of sellers must be posted on a real time basis, and if possible, available for viewing online, so that legitimate farmers in the area can challenge dubious transactions.

“The NFA should also do random validation of sales with members/officers of farmer groups since in most of the illegal transactions where farmer groups are used as dummies, only a few officers of the organization are involved and in the know,” he said via Viber.

The FFF also welcomed NFA’s stricter procurement rules, noting the problem of NFA employees colluding with traders and their dummies. 

The NFA can buy only from farmers or farmer organizations, but some traders have enlisted some farmers and leaders of farmers’ groups to pay a commission to tap the traders’ sales pipeline to the NFA, it noted.

“This has been a perennial problem every time. Trader buying prices are significantly lower than NFA’s price,” it said.

The NFA buys palay for up to P30 per kilogram (kg), depending on location and moisture content of the grain.

The average farmgate price of palay fell 28.9% year-on-year in May to P17.75 per kg.

Month-on-month, the palay farmgate price fell 1.6% in May from P18.04 in April, according to the Philippine Statistics Authority. — Kyle Aristophere T. Atienza

National Gov’t gross borrowing declines nearly 26% in May

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THE NATIONAL Government’s (NG) gross borrowing slumped in May, driven by a decline in foreign loans, the Bureau of the Treasury (BTr) said.

Gross borrowing dropped 25.85% to P192.31 billion in May.

Month on month, gross borrowing declined 50.7%.

Gross external borrowing slumped 95.1% year on year to P6.25 billion in May, with foreign borrowing declining from the high year-earlier base. Last year’s tally reflected the government’s P115.247-billion global bond issue.

Gross domestic borrowing surged 41.25% year on year to P186.06 billion in May.

This total included P159.76  billion in fixed-rate Treasury bonds and P26.3 billion in Treasury bills.

Domestic debt accounted for 96.75% of all gross borrowing.

Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said a global bond offering in February and large demand for government securities dampened borrowing requirements.

The BTr raised $3.3 billion from dollar bonds and euro-denominated sustainability bonds in late January. The bonds were settled in February.

NG gross borrowing also slipped 6.67% to P1.33 trillion in the first five months of the year, as both domestic and external borrowing declined.

Gross external debt slumped 21.54% to P305.94 billion during the period, consisting of P191.97 billion in global bonds, P85.2 billion in program loans and P28.77 billion in new project loans.

Domestic gross borrowing fell 12.74% year on year to P1.02 trillion during the five months.

This consisted of P629.16 billion in fixed-rate Treasury bonds, P300-billion fixed rate Treasury Notes and P92.41 billion in Treasury bills.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the decline in gross borrowing in the first quarter and in June to fewer maturing government securities compared to a year earlier.

He noted the narrower fiscal deficit during some months, along with surpluses of P68.36 billion in January and P67.3 billion in April, which likely reduced the need for additional borrowing.

“Though offset by the $3.3-billion global bond issuance in the latter part of January 2025 that almost completed the NG’s $3.5- billion commercial borrowing program for 2025 and the P300-billion 10-year Treasury note issuance in April 2025, among other NG borrowings frontloaded amid volatility in the US/global financial markets due to Trump’s higher tariffs,” he said.

In the coming months, Mr. Ricafort said he expects more NG borrowing in the face of large maturing Treasury bonds in August and September.

The Budget deficit declined to P145.2 billion in May as increased revenue collection was accompanied by a slowdown in spending due to the election ban. This broadened the fiscal gap by 29.41% to P523.9 billion in the first five months.

Meanwhile, Mr. Erece said the preference for domestic borrowing over external loans will shield the country from external shocks and foreign exchange fluctuations.

On Thursday, the DBCC set a fiscal deficit target of P1.56 trillion or 5.5% of gross domestic product this year, from 5.3% previously.

This year’s financing program has been set at P2.545 trillion, with 80% coming from domestic lenders and 20% from foreign sources.

The DBM said it will release the new Budget of Expenditures and Sources of Financing in the next two weeks. — Aubrey Rose A. Inosante

New SEC chairman expected to expedite capital market reforms

THE GOVERNMENT is moving to expedite regulatory and market reforms aimed at improving business conditions and deepening capital markets with the appointment of the new Securities and Exchange Commission (SEC) chairman, the Department of Finance (DoF) said.

In a statement Sunday, the DoF said Finance Secretary Ralph G. Recto met with Chairman Francisco Ed. Lim on June 23.

The discussion revolved around “enhancing the competitiveness of the Philippine capital markets and facilitating the smooth entry of investments into the country,” it said.

The SEC has said that implementing the recently signed Capital Markets Efficiency Promotion Act (CMEPA) is among ts top priorities, to make the tax system for passive income simpler and more fair.

President Ferdinand R. Marcos, Jr. signed CMEPA into law on May 29.

The SEC also signaled closer monitoring of crypto asset service providers, requiring licensing and compliance with new guidelines.

The DoF earlier reported that it is committed to adopting the Crypto-Asset Reporting Framework (CARF) by 2028, which outlines the reporting and automatic exchange of information compliance rules for crypto assets.

Other reforms include developing a real-time application tracking system and reviewing its fee structure, including a temporary moratorium on fee increases.

The SEC also plans to simplify registration procedures for small and medium enterprises and opening the repurchase market to nonbank financial institutions (NBFIs).

The SEC will enhance capital market regulatory frameworks by clearly differentiating equity and debt regimes to streamline approval processes.

It will also update rules on credit rating agencies to boost credibility and market depth and aligning short selling and securities lending practices with global standards.

The SEC “will also revise the implementing rules and regulations (IRR) of the Real Estate Investment Trust (REIT) framework to better respond to market needs,” it said.

To promote collaborative governance between the public and private sectors, the SEC will prioritize reforms to the Capital Market Development Council and engage key business groups to assess public perception, the DoF said.

The regulator is set to develop a roadmap for alternative investment products and derivatives, including options, futures, and a potential commodity futures market, in a bid to “enhance risk management and expand investment options.”

The SEC operates under the supervision of the DoF and is tasked with protecting investors by ensuring fair and efficient markets, and facilitate capital formation by registering corporations and securities, supervising market participants, and enforcing securities law. — Aubrey Rose A. Inosante

Six UK gin brands seek PHL distribution deals

STOCK PHOTO | Pixabay.com
STOCK PHOTO | Pixabay.com

SIX BRITISH gin brands are looking for potential distribution partners in the Philippines, according to the British Chamber of Commerce Philippines (BCCP).

“Even though the UK may be famous for gin, the Philippines is also really becoming a place where quality gin is being made and distributed worldwide,” BCCP Vice Chairman Sarah McLeod told BusinessWorld on the sidelines of BCCP’s World Gin Day late on Thursday.

“I also know that people in the Philippines drink the most gin in the world,” she added.

An annual BCCP event, World Gin Day is staged every June to showcase gin brands from the Philippines and the UK.

“This year, we’ve got six brands here that are not available yet for distribution in the Philippines,” she said.

“So they’ve been shipped in specially for tonight for us to taste, and they’re looking for distributors in the country,” she added.

The gin brands are Cotswolds Distillery, G&I Spirit Group Ltd., Eight Lands, Masons of Yorkshire, Rock Rose Gin, and Spirit of Trent.

Jimmy Maes, sales manager for Asia at Dunnet Bay Distillers, the distillery that makes Rock Rose, said that the company is currently looking for importers in the Philippines, Hong Kong, and Singapore.

“We are doing it slowly, but we do it good. We are already talking with some potential partners in Hong Kong and Singapore, and also Taiwan,” he added.

“Now, I will try to get in touch with some of them here in the Philippines. We are already in contact,” he said.

Asked how soon the brand can get into the Philippines, he said, “I believe that before the end of the year, there should be some movement with first orders.”

“It’s my job to really be the brand ambassador and to help the importer to make things happen. But it takes time. There are so many gins, so many whiskeys,” he added.

He said there is demand for high-end and specialty gins in some big cities in the Philippines.

“And that is what we also are… These types of gins are different. You don’t need to put juice with it. You drink it pure, or with tonic water, or just with ice, and then you have the flavor,” he said.

“I hope by the beginning of next year that there will be some things from Rock Rose on the market here,” he added. — Justine Irish D. Tabile

National Fiber Backbone phases 2, 3 targeted for completion by year’s end

STOCK PHOTO | Image from Freepik

The Department of Information and Communications Technology (DICT) said it hopes to complete the second and third phases of the National Fiber Backbone by the end of the year.

“For the phases two and three, we are trying to finish it this year. The strategy is to get it all utilized,” ICT Secretary Henry Rhoel R. Aguda told reporters.

The National Fiber Backbone project aims to provide faster and reliable internet connectivity. The DICT estimates around 70 million Filipinos to benefit from the project.

The two phases cover southern Luzon and parts of the Visayas and Mindanao.

The first phase, which involves high-speed connections between Laoag, Ilocos Norte and Quezon City, was completed in April 2024. It covers 1,245 kilometers with 28 nodes. It has an initial 600 gigabits per second optical spectrum capacity that will serve the government and at least 14 provinces, and two National Government data centers, according to the DICT.

Earlier this year, the DICT said it was expecting  the second and third phases to be ready by July.

The DICT has obtained a $287.24-million loan from the World Bank to accelerate phases 4 and 5 of the project.

The completion of the project is expected to spur growth in rural areas, especially in the Visayas and Mindanao. — Ashley Erika O. Jose

BCDA building P360-M dorm for student-athletes in Clark

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The Bases Conversion and Development Authority (BCDA) is starting the construction of a P360-million student-athlete dormitory in New Clark City, Capas, Tarlac.

“The presence of the National Academy of Sports (NAS) in New Clark City reflects BCDA’s belief that investing in our youth is essential to nation-building,” BCDA President and Chief Executive Officer Joshua M. Bingcang said in a statement over the weekend.

“By equipping our young athletes with world-class resources and facilities, we are not only developing champions in sports — we are nurturing the future leaders of our country,” he added.

To be developed in partnership with the Department of Budget and Management (DBM), the 1,500-square-meter dormitory can house up to 400 student-athletes and is targeted for completion in 2026.

It will feature 28 rooms, an atrium, a dining hall, recreational spaces, a kitchen, a dishwashing area, administrative offices, and laundry and utility rooms.

“Our student-athletes deserve nothing less than a world-class environment where they can train harder, dream bigger, and shine brighter,” Budget Secretary Amenah F. Pangandaman said.

“Thanks to BCDA, every part of this campus — from classrooms to courts — was built not only to inspire, but to demonstrate our commitment to helping young athletes realize their full potential,” she added.

Aside from the dormitory, the BCDA is also constructing a new gymnasium and a dedicated gymnastics floor.

“Currently, NAS is home to 270 student-athletes enrolled in various academic and athletic disciplines,” BCDA said.

“With the addition of new facilities, New Clark City continues to emerge as a premier destination for world-class sports infrastructure—shaping not just athletes, but future champions of the nation,” it added. — Justine Irish D. Tabile

Turning protection gaps into growth opportunities for insurers

IN BRIEF:

• Global insurers have shown resilience and strong performance, positioning themselves for growth in both established and emerging markets.

• There is a rising demand for essential protection and value-added services, alongside new opportunities in risk assessment and pricing.

• By focusing on innovation investments to address protection gaps, insurers can secure a competitive edge in the market.

Insurers have a unique opportunity to drive innovation and growth by addressing protection gaps in the market. In the Philippines, growth in the country’s insurance penetration rate is at 1.89% in the first quarter this year from 1.78% in the same period in 2024. While the momentum is expected to carry throughout the remainder of the year, it is still below the global rate of 6%. As reflected in the insurance premium expense per capita growth to P1,094.94 from P965.56, insurance density also improved 13.4%. Per Statista, the insurance industry in Southeast Asia is forecast to grow 3.5% annually until 2029. This optimistic forecast is attributable to the global silver tsunami expected to triple by 2050.

The “silver tsunami” refers to the significant demographic shift as the Baby Boomer generation reaches retirement age, which will drive demand for financial planning services, life insurance, and health insurance with integrated wellness programs.

Despite promising growth, geopolitical tension and trade wars are also expected to result in economic shocks this year, requiring strategic and operational flexibility from insurers. Coupled with increasing risks from cyber threats, climate change, and demographic shifts leading to a growing retirement savings gap, insurers are called to rethink their strategies.

According to the 2025 Global Insurance Outlook, significant protection gaps exist, particularly in cyber and climate-related risks, where a staggering 99% of cyber losses and 60% of natural disaster losses remain uninsured, according to Munich Re’s Cyber Survey 2024 and Swiss Re research unit Sigma, respectively. In 2024, the World Bank reported that natural disasters affected $3.5 billion in Philippine assets yearly while direct losses to both public and private assets topped 1% of gross domestic product (GDP). Additionally, the growing retirement savings shortfall presents further avenues for value creation. A strategic focus on enhanced data utilization and modernized technology is essential for insurers to capitalize on these opportunities.

DEVELOPING TARGETED PRODUCTS
The most significant protection gaps, particularly in retirement savings and climate-related risks, are expected to widen. According to Swiss Re, the global retirement savings gap is projected to increase from $106 trillion in 2022 to $483 trillion by 2025. With longer life expectancies and aging populations, there is a pressing need for products that provide income for older adults. Insurers can enhance financial security by offering innovative solutions.

While the neighboring ASEAN countries are currently experiencing the silver tsunami, the Philippines is expected to have an aging population by 2032 of 7%. Overall, the country’s young demographic occupies a bigger share of the insurance market. Insurers must clearly communicate their value propositions to increase awareness about the need for protection from growing wellness concerns and cater to shifting priorities by focusing more on health and family protection instead of investment growth. 

To foster climate-related solutions, the Philippine government under the Disaster Risk Finance and Insurance (DRFI) strategy has tapped contingent financing from the World Bank and other partners to provide immediate liquidity to help manage the financial impacts of disasters. The government secured over $14 billion in risk transfer protection to improve fiscal resilience, including through a catastrophe bond, a parametric insurance program for local government units, and the 2024 National Indemnity Insurance Program (NIIP), which protects more than 130,000 schools.

To implement this comprehensive risk layering strategy, public and private partnerships should be strengthened and strong ownership ensured to continue protecting more people in the coming years.

PERSONALIZING OFFERINGS TO INCREASE CUSTOMER ENGAGEMENT
Implementing usage-based products, customizable features, and tailored pricing can demonstrate a commitment to meeting consumer needs, fostering loyalty and engagement. AI tools can facilitate personalized messaging, precise pricing, and expedited underwriting processes. On-demand coverage and real-time risk prevention are additional avenues for enhancing value through personalization. Advanced analytics can help identify high-potential customers for bundled offerings that maximize customer satisfaction.

The impact of technology is significant, with insurers experiencing a 10 to 25% increase in operating profits when employing effective data and analytics strategies, according to Gartner (2023). Furthermore, generative AI-enabled automation can enhance underwriting capacity by 35%, as reported by Willis Tower Watson.

PURSUING SCALABLE INNOVATION
By adopting a lean and automated operational model, insurers can expand low-margin products to new market segments through partnerships and ecosystems. The rise of embedded offerings illustrates the potential for growth. According to Swiss Re, parametric insurance, which pays out based on specific events, is gaining traction and is projected to grow from $11.7 billion in 2021 to $29.3 billion by 2031. This model has applications in agriculture, natural disaster protection, and can also be extended to business interruptions and cyber threats.

LEVERAGING REGULATION
The evolving regulatory landscape, particularly in Europe, presents both challenges and opportunities for insurers. While 61% of insurers identify regulatory changes as a primary operational challenge, those who embrace compliance as a strategic advantage can derive business value, as noted by Mercer. The upcoming EU Financial Data Access (FiDA) legislation, set to take effect in 2025, will enable consent-based data sharing across various insurance sectors, offering firms a chance to broaden their service offerings. Additionally, participation in government pension schemes will necessitate improved data sharing capabilities.

ADOPTING A COMPREHENSIVE DATA STRATEGY
Success in the digital era requires a unified data strategy that is comprehensive and led by top management. Enhanced data utilization is crucial for innovation, and the CEO should spearhead the data and technology agenda rather than relegating it to the IT department. A robust data strategy must harness AI and advanced technologies, ensuring a flexible infrastructure and establishing strong governance models to maintain data quality and trust.

FOCUSING ON UNDERSERVED MARKETS
The potential to attract millions of new customers lies in developing solutions for the underserved. According to Insurance Asia, cultural and economic factors limit insurance growth in the Philippines. Significant reduction can be noted in the poverty incidence among the population of 15.5% in 2023 from 18.1% in 2021. However, despite this, the poverty rate is still high while pressing concerns about income inequality and inflation mount. A substantial market opportunity for insurers currently lies with the potential growth of the younger generation, expanding middle class, vibrant labor market, and its demographic sweet spot.

Innovative products that are affordable and easy to access, such as microinsurance and tailored policies for small businesses, can create significant value for these segments. Insurers in emerging markets are already offering health and life insurance for as little as $0.20 per month, highlighting the need for strategic thinking to meet the demands of underserved populations.

CREATING VALUE THROUGH INNOVATION
According to Insurance Asia, the Philippines has demonstrated stronger growth in insurance penetration, with a remarkable increase of 30%. This is way above the 15% growth in the ASEAN region from 2023 to 2024, presenting a significant pivotal moment for the country that can be capitalized upon. However, insurers are still hindered by outdated IT systems, fragmented data/geographies, and complex organizational structures that could impede innovation.

While 73.7% of the investments of insurance companies are planned to be allocated for artificial intelligence (AI) and machine learning, 40.6% of Philippine companies cite legacy IT infrastructure as a key challenge to digital transformation, which is above the ASEAN average per the 2024 ASEAN Enterprise Innovation Survey.

AI adoption comes with challenges that can be addressed by the careful evaluation of data infrastructure, having the right talent, and customizing solutions based on the local landscape. By utilizing AI-driven technology effectively and enhancing data management capabilities, insurers can deliver personalized products and services, ultimately benefiting a broader range of customers and communities.

As the industry adapts to new realities, those who strategically target investments in innovation can enhance their market presence and contribute to societal resilience against emerging risks.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Bernalette L. Ramos is an assurance partner and the insurance sector leader, and Charisse Rossielin Y. Cruz is a business consulting partner and the insurance sector deputy leader, both of SGV & Co.

Eala shifts focus to bigger and brighter stage of Wimbledon

ALEX EALA — LTA.ORG.UK

THERE is no rest for the weary — and wounded — as Alexandra “Alex” Eala shifts her full focus in a quick turnaround to a bigger and brighter stage of Wimbledon this week.

Still licking the wounds of a first finals heartbreak, Ms. Eala promises to get better and stronger from here starting with the clash against the sport’s giants on the tough London grass Tuesday until July 11.

Game time is still to be announced but Ms. Eala is raring to go to Centre Court for the first time ever of a major main draw against no less than reigning Wimbledon champion and world No. 17 Barbora Krejcikova of the Czech Republic.

“This is the first. I’ll work hard to do more. Wimbledon’s next so hopefully I forget about this match soon enough,” said Ms. Eala after a three-set heartbreaker against Australia’s Maya Joint in the Lexus Eastbourne finals over the weekend.

“It’s been a crazy year so I’ll remember this week and this moment forever.”

Ms. Eala and Ms. Krejcikova came from different paths in the same Eastbourne tourney, making it an intriguing battle in the Wimbledon opener.

While Ms. Eala made it all the way to the Eastbourne finale, Ms. Krejcikova pulled out in the quarterfinals against France’s Varvara Gracheva due to a thigh injury but she’s back in training over the weekend to brace for an anticipated tough title defense.

Good thing for Ms. Eala, she will have an extra motivation and momentum to bank on in a hercuelan bid to land an upset ax on the heavy favorite Czech with a new career-best ranking in the Women’s Tennis Association (WTA).

Ms. Eala scored six wins in Eastbourne, starting from the qualifiers, to reset her previous career-best (No. 69) thrice in the past week alone.

The 20-year-old Filipina is now No. 56 with 1,041 points from No. 74 to start the week then to No. 68 and No. 64 in three straight days at Eastbourne.

She could have barged inside the Top 50 and delivered the country’s first-ever WTA title if not for the stinging defeat to fellow rising star Joint, now WTA No. 41, with four championship points wasted.

And now a bigger battle awaits. — John Bryan Ulanday

December SEA Games in Thailand and 2028 LA Olympics are priorities for PSC’s Patrick Gregorio

PSC CHAIRMAN PATRICK GREGORIO — BW FILE PHOTO/PHILIPPINE ROWING ASSOCIATION

NEWLY INSTALLED Philippine Sports Commission (PSC) Chair Patrick “Pato” Gregorio will take over the government sports-funding agency hoping to accomplish one goal in mind — ride on the momentum of Philippine sports’ golden era.

“Let my leadership inspire as I have been inspired by the sheer potential in Philippine sports—to build and to strengthen this proud nation,” said Mr. Gregorio, who has recently taken over Richard Bachmann as PSC chief.

Mr. Gregorio thanked President Ferdinand R. Marcos, Jr. and vowed to reciprocate the latter’s faith in him.

“It is my honor and privilege to serve as the chair of the PSC. I am grateful for the president’s trust and will do right by it,” he said.” It is an honor to serve the country and the national athletes.

Mr. Gregorio said he would officially report for duty on Tuesday and one of his first things he would do is to immediately give up his post as Philippine Rowing Association head as to avoid conflict of interest.

“I need to give up the rowing presidency,” said the former PBA chair and Manny V. Pangilinan Sports Foundation president.

He is also mulling bringing in people to help him in charting the country’s program for the future.

“Need to review the present organization before we bring in new faces to help us,” he said.

Some of the tasks that should be a priority for Mr. Gregorio are the country’s campaign in this December’s Southeast Asian Games in Thailand as well as the 2028 Los Angeles Olympics where the country hopes to rake in more gold medals.

He will also come in at a time when the country is experiencing its finest hours in sports having produced world and Olympic champions in weightlifter Hidilyn Diaz and gymnast Carlos Yulo and world class athletes like pole-vaulter EJ Obiena, the country’s boxers headed by Nesthy Petecio and, most recently, Alex Eala, who had a historic runner-up finish in Lexus Eastbourne Open, a strong WTA event, a day ago.

Philippine Olympic Committee Chief Abraham Tolentino, for his part, welcomed the appointment of Mr. Gregorio, whom he worked with as co-chef de mission of the Nationals that saw action in the Paris Games last year.

“I see a sports community that works harmoniously,” said the Tagaytay City Mayor and PhilCycling chief. — Joey Villar

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