P12B pandemic insurance claims should be a wake-up call for improving financial literacy of Filipinos

Since the start of the pandemic until the third quarter of 2021, the insurance industry has paid a total of P12.12 billion in claims relative to the COVID -19 virus. The huge amount should be a wake-up call for more Filipinos to take necessary steps in preparing financially for unforeseen medical emergencies.

This was the urgent call made by Insurance Commission Commissioner Dennis Funa

during the first-ever Ipon Conference, a hybrid event that aimed to help empower the education sector and augment their financial literacy with the theme, “What to Do in 2022.”

Powered by AXA Philippines, one of the country’s leading insurance providers, this hybrid event was organized with the help of the Department of Education (DepEd) in partnership with Empower and Transform, a company composed of a group of diverse professionals led by veteran journalist Salve Duplito that provides financial education and affordable financial advisory to Filipinos of all income levels here and abroad.

Held at Tunasan National High School and simultaneously streamed on DepEd’s official Facebook page, the conference aimed to educate specific sectors of society for the advancement of financial education for Filipinos.

During the event, AXA Philippines shared insights into the importance of investing in education as well as protecting our savings to ensure a more secure future. The company also talked about how unplanned medical expenses can potentially put a dent on our savings and derail our lives, especially at a time when the costs of medical care keep increasing year-on-year. From 2019, it estimates medical costs to increase yearly by 13%, and the numbers continue to climb.

The insurance provider also shared how the financial industry is evolving quickly. With technology, collaborations, and medical advancement, Filipinos need not add to their loved ones’ suffering needlessly. There are financial tools that we can all use to ease these difficult moments of our lives, and that should be part of every Filipino’s financial education.

With the help and guidance of AXA Philippines, DepEd and Empower and Transform also launched the first Ipon Ambassadors consisting of 17 personnel from the education sector across the country. The ambassadors will be given hands-on mentoring and coaching about savings, investments, and financial planning by professional financial advisors. Additionally, the ambassadors who achieve their cash and savings milestone will be given a cash grant ranging from P20,000 to  P50,000. AXA Philippines will also be helping the 17 ambassadors prepare for life and for health setbacks by giving them a free personal accident insurance plan.

The event was also graced by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, who emphasized that “a person’s financial health and wellness are closely related to their level of financial literacy. This is why BSP prioritizes financial education and literacy among its advocacies. Together with DepEd, we recognize the importance of financial education as one of the means to hone the financial skills of our teachers.”

Philippine Stock Exchange Chief Operating Officer Atty. Roel Refran also shared, "When you talk about savings - assuming that you already have ventured into it- it's not a matter of how much we earn, but it's really a matter of how much we save. And if it's only sitting in our bank accounts, it's really not earning a market return. Instead, we should try to grow our savings by investing. With inflation, it's a wake-up call for us be smarter and to look for other opportunities and right financial tools to grow our ipon (savings)."

Also present during the event were DepEd Secretary Leonor Magtolis-Briones, DepEd Undersecretary Tonisito Umali, DepEd Undersecretary Diosdado San Antonio, DepEd Director III for External Partnership Central Office Edel Carag, Securities and Exchange Commission Chairman Atty. Emilio Benito Aquino, AXA Philippines Chief Distribution Officer Marie Raymundo, parenting advocates Joy and Edric Mendoza, and multi-awarded father and daughter tandem Ben and Izabella Lebig.