Nat Re sees positive growth as reinsurance demand rises

CEBU, Philippines — Greater demand for financial reinsurance coupled with higher health-related insurance coverage amid the ongoing pandemic, are expected to support the growth trajectory of the National Reinsurance Corporation of the Philippines (Nat Re) in 2021.

“We continue to identify pockets of growth such as opportunities resulting from the need for capital relief reinsurance solutions and higher health insurance covers, as well as partnerships with foreign reinsurers,” Allan R. Santos, Nat Re President and Chief Executive Officer, told company shareholders at the recently held 2021 Nat Re Annual Stockholders’ Meeting.

In 2020, Nat Re’s life reinsurance business grew by 16 percent as the pandemic only had minimal impact on the company’s underwriting results. Through well-attended webinars, Nat Re delivered to life insurers relevant information and tools on topics such as but not limited to remote selling and underwriting, home-based medical examinations, legal implications of remote insurance selling, and techniques in estimating the costs of COVID-19 products. Nat Re continued to support building the capabilities of its life cedants’ technical professionals, providing tailor-fit training such as individual medical underwriting, group insurance pricing, and claims evaluation.

According to Santos, Nat Re also supported the insurance industry’s clamor for simplified underwriting amid the challenges of the traditional procurement of medical evidence of insurability, and supported the government’s mandate to extend payment deadlines of insurance contracts.

For its Non-Life business, Nat Re continues its partnership with the Insurance Commission (IC) and the Philippine Insurers and Reinsurers Association on the Philippine Catastrophe Insurance Facility, which is designed to help the industry manage catastrophe risks more efficiently. In turn, the facility would afford the public more inclusive access to catastrophe protection and allow faster economic recovery from disasters.

“We are heartened to see that Nat Re has continued to play a unique role in supporting the nation, the insurance industry, and fellow Filipinos during these trying times,” Santos said.

“As we face the remainder of 2021, we assure you that we will continue to pursue profitable growth as well as cement Nat Re in its role of being a stable anchor and champion for the insurance industry,” Santos added.

The publicly listed Nat Re provides life and non-life reinsurance capacity, and in relation to this offers consultancy, technical, and advisory services to its clients—the direct insurers—in emerging markets. Its services allow direct insurers to better manage their retention and capital, to maximize their net premiums given their risk appetites, and to execute their roadmaps to competitiveness.

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