Pre-need firms more than doubled losses amid pandemic-induced recession

MANILA, Philippines — Pre-need firms more than doubled their losses during the first nine months of last year as sales slumped amid a pandemic-induced recession.

The latest Insurance Commission (IC) data showed that the total net loss incurred by 12 pre-need players widened by 140.56 percent to P3.47 billion as of end-September 2020 from P1.44 billion a year ago.

During the January to September period, pre-need companies posted only P305.7 million in income, outpaced by losses amounting to P3.77 billion.

Their combined sales or total premium income fell 16.96 percent to P13.46 billion from P16.21 billion a year ago.

The pre-need sector sold only 284,850 plans from January to September last year, a 58.55-percent drop from a year ago’s 687,236.

In particular, the 281,784 life plans they sold declined 58.51 percent from 679,217 during the first nine months of 2019, despite the threat coming from the deadly COVID-19 disease.

The number of pension plans sold slid 61.53 percent to 2,835 from 7,370 a year ago.

Education plans dropped at the fastest rate as the 231 sold during the nine-month period was 64.41-percent lower than the 649 in the previous year.