Dec 14 2021
2022 trends forecast by Filipino financial advisors
Mike Advincula and Ritchie Horario, both four-year MDRT members, share trends that will shape the insurance industry in the Philippines in 2022.
By Ariana Ubina
Mike Advincula and Ritchie Horario, both four-year MDRT members, give their outlook on the global and local developments that financial advisors should consider when prospecting for clients in 2022.
In the thick of digital transformation
While the pandemic has significantly accelerated digital transformation, further improvements can still be made to provide reliable internet connectivity and faster internet speed in rural areas in the Philippines.
“In 2022, we will carry on with the digital shift as we live and work despite the pandemic. Despite the vaccine, people are still hesitant to meet face to face as COVID-19 continues to mutate,” Horario shared. “However, while people in the metro and nearby regions are making the digital shift, many Filipinos still aren’t reachable by technological innovations. It is why initiatives to improve the Philippines’ digital infrastructure are highly in-demand, so provincial areas won’t be left behind. While there is equal value in reaching out to Filipinos in the urban and rural areas, more advisors cater to the former than the latter. As our digital infrastructure improves in the coming years, financial advisors must reach out virtually to more clients now.”
Advincula shared that artificial intelligence may affect financial advisors in the future. “Just about every industry aims to integrate artificial intelligence to improve business efficiency. In the finance sector, robo-advisors have been invented to provide unbiased personal financial solutions to clients depending on their current economic situation. While robo-advisors aren’t widely used yet, financial advisors must already start thinking how this potential threat can be converted into opportunity in the future.”
Generational transfer of wealth
Advincula noted that the pandemic had forced Baby Boomers into early retirement, which likely led to the transfer of personal wealth to Millennials and Gen Z. “Financial advisors should establish relationships with the younger generation and understand how to serve them best as they’ll have growing purchasing power as a result.
For example, the younger people have seen how severe the impact of the pandemic was not only on them but on their grandparents’ generation as well. However, how well do they understand the potential effects of the pandemic on their retirement years? With this situation in mind, financial advisors can better help Filipino families build their wealth in preparation for the future.”
More significant consumer spending during an election year
Horario said that next year’s elections could stimulate the local economy, opening opportunities for financial advisors. “Financial advisors should look for opportunities in businesses that would greatly benefit from seasonal events such as the elections. For instance, printing suppliers have always been in great demand to produce posters and flyers during campaign periods. By identifying prospective enterprise clients, advisors have a better chance of securing clients during harvest season.”
Rise of small businesses and gig economy
“Since many people lost their jobs because of the pandemic, many individuals put up small businesses or provided freelancing services to build streams of income,” Advincula said. Financial advisors should consider how insurance can help these entrepreneurs and gig workers. “They may have the money to invest, but they don’t have the corporate insurance protection that employees enjoy, making it a market worth looking into.”