FWD Life Philippines is looking to launch its high net-worth insurance business in the country, as it seeks to replicate its success in other Asian markets.
“We studied the feasibility of what we call the high-level corridor because different countries have different regulations on how you can actually do business,” FWD Life Philippines President and Chief Executive Officer Lau Soon Liang told reporters on Sept. 17. “The Philippines may be a possibility.”
FWD’s high net-worth operations run out of Hong Kong, Singapore and Bermuda, offering both onshore and offshore solutions tailored for wealthy and ultra-wealthy clients.
These products typically cover wealth transfer, estate planning and legacy preservation — areas where insurers compete aggressively for high-margin business.
While FWD Life Philippines is still in the process of mapping out the regulatory environment, Mr. Liang said the insurer is preparing to adapt its products to local market conditions.
“Innovation doesn’t really come in terms of the product, but the overall solution,” he said. “We have quite a bit of digital innovation happening, and how to actually bring it to the customer is one way.”
He acknowledged that innovation could be constrained by the Philippines’ relatively low financial literacy and slow insurance penetration, which remains among the lowest in Asia.
To bridge that gap, FWD plans to introduce Project Clarity, an initiative that simplifies insurance contracts by eliminating legal jargon, fine print, and complicated exclusions.
“We want to make insurance easy to understand,” Mr. Liang said. “Project Clarity was already implemented many years ago in other countries, and we want to lead in bringing it to the Philippines.”
The initiative will need clearance from the Insurance Commission before rollout. “It’s not a simple task,” he said, adding that the wording has to be enforceable and regulators must ensure it won’t be misinterpreted.
“There is a lot of complex mechanics behind the simplification of the terms,” he added.
FWD is also considering a redesign of policy exclusions, building on its experience in Vietnam where the company reduced more than 30 exclusions to just six within six months.
“It was already a big win for us,” he said, adding that regulators were really supportive. “We have to make sure we are protected,” he added, apart from the need to reinsure early and manage excess risk.
FWD Life Philippines, which entered the market in 2014, has grown into one of the country’s leading insurers. It reported P39.85 billion in premium income last year, with net income reaching P848.51 million, according to Insurance Commission data. — Aaron Michael C. Sy
