FWD, BDO and Allianz fighting to replace AXA & Manulife in the Philippine life market Top 5

The insurance industry might not seem to be the most dynamic, as the key drivers of success in the market have only changed gradually. For decades, brand awareness, a large agency network, and, in the past two decades, a strong bancassurance partner determined how many people could be reached and convinced to become policyholders.

The graph positions nine top players based on the relative size of their portfolio and its development from 2015 to 2024. Portfolio size is calculated as an average of the share in normalized premium income and the share of (tied) assets—two key indicators of financial health for life insurers. Companies positioned above the horizontal axis have grown their market share, while those below have seen a decline. The farther a company is positioned to the right, the larger its overall portfolio.

Movements Within the Top 5

AIA was once the most dominant player in the market, relying on its strong Philam brand, extensive agency network, and market position to maintain its lead. However, a decade of inaction saw its market share erode before it finally responded by forging a bancassurance agreement with the country's second-largest bank. While this move helped stabilize its position, it has yet to fully reverse the decline, as reflected in its position on the graph.

Sun Life played the game smarter, strengthening its brand, aggressively expanding its sales force, and improving customer service. This made it the most admired company for both agents and customers. However, despite its strong market position, Sun Life has seen its market share in NPI stagnate at 22%, while its share in (tied) assets decreased from 25% in 2015 to 21% in 2024. The challenge has been maintaining growth with a relatively small bancassurance partner, which ultimately limits market reach. To sustain its leadership, Sun Life will likely explore new distribution strategies.

Prudential (Pru UK) was late in securing a significant bancassurance partnership and instead focused on building the largest agency network in the country. True to its parent company's DNA, maximizing "feet on the street" proved to be a strong compensatory strategy. This led to a surge in sales, propelling Pru into the top 3. However, as the graph suggests, its asset market share is not growing at the same pace, raising questions about the long-term sustainability and quality of its sales.

Both Manulife and AXA have struggled over the past decade, losing market share. Challenges in optimizing their bancassurance partnerships, expanding their agency sales force, and defining a clear product focus have weakened their positions. This decline has opened opportunities for new players, with FWD, BDO, and Allianz emerging as contenders for the top 5.

New Candidates to Enter the Top 5

FWD has demonstrated impressive growth. Initially relying heavily on its bancassurance partnership with Security Bank, it has successfully diversified its sales strategy by strengthening its agency network. With the industry shifting towards health and protection products as investment-linked insurance nears the end of its life cycle, FWD appears well-positioned for continued expansion. A strategic move into another bancassurance partnership—whether with a traditional or digital bank—could propel it even further.

BDO Life has the most extensive resources at its disposal: the largest retail bank, the most extensive loyalty program, and the widest retail presence, providing access to nearly the entire market. However, it has yet to fully leverage this ecosystem beyond bancassurance. If BDO Life integrates life insurance more effectively into its banking operations and makes strategic investments in technology, it is well on its way to breaking into the top 5.

Allianz has posted notable results, primarily driven by single-premium sales through its partnerships with HSBC and PNB. Unlike FWD, however, Allianz has yet to establish strong customer relationships, build a substantial agency network, or develop a significant digital distribution strategy. As a relatively new player in Southeast Asia, Allianz may need to refine its strategic direction—whether through organic growth initiatives or an acquisition—to secure a spot in the top 5.

Customer-Centricity: The Key to Success in the Next Decade

As the competitive landscape continues to evolve, the next decade will be defined by insurers’ ability to deliver customer value. Companies will need to differentiate through innovative products, reduce costs through efficiency gains, and ensure seamless omnichannel accessibility. Most importantly, fulfilling promises to customers will be the ultimate measure of success.

To achieve this, insurers must prioritize strategic technology investments that enhance customer experience, streamline operations, and reinforce the value proposition of insurance. Those who successfully adapt to this new reality will emerge as the market leaders of the future.