Millennials drive up demand for insurance products

Insurance plans with additional provisions for critical illnesses like cancer, stroke, heart attack, renal failure and brain tumor are gaining traction among millennials, according to British life insurer Pru Life UK.

As the people contracting critical illnesses are getting younger and younger—possibly due to changing diet and lifestyle—awareness is growing among young people to acquire protection.

In terms of Pru Life’s new business, 52 percent now consisted of millennials, Pru Life president and CEO Antonio de Rosas said yesterday at the signing of a new partnership with premier health care provider, St. Luke’s Medical Center.

“I noticed that the millennials, especially those starting their family, are getting more and more responsible. This was unlike during my time—I’m the last of the baby boomers—when it was harder to sell protection [to young people].”

About half of Pru Life’s 35,000-strong agency force likewise consisted of millennials. “Usually, it’s the millennials who can sell to millennials,” De Rosas said.

Pru Life’s new protection business grew by 34 percent in the first half, beating flat industry performance for the period.

As more and more people recognize that without insurance coverage, critical illness could be disastrous to the financial position of any family, De Rosas said almost half of Pru Life’s business now consisted of insurance solutions with critical illness riders.

For people within the 25 to 30 age range, to get P2 million basic life insurance coverage, De Rosas estimated that typical premium cost would be P40,000 a year plus a few thousands more to get an insurance rider—referring to a policy provision or amendment which gives additional benefits.

“The difference on premium on basic plan and rider is not significant, it’s 20-30 percent more, but the coverage is comprehensive,” he said. —DORIS DUMLAO-ABADILLA